Savouring Saving

Using tax-free savings accounts and retirement annuities can benefit your financial well-being

- Barrie Van Zyl

South Africa’s national average savings rate is a dismal 3%, while the household debt to income ratio is a staggering 74.4%. Perhaps consumers find the wide range of investment offerings overwhelming, and this could lead to South Africans faring badly on a global scale when it comes to saving.

This is an indication that South African consumers make debt for purchases and expenses, leaving little room for savings. The majority of the population do not have any savings to tap into in case of an emergency, and instant gratification purchases are preferred over long-term savings and investment commitments. More frightening is the fact that nine out of 10 South Africans will not be able to afford to retire comfortably – or at all.