Kevin Lings, chief economist at asset manager Stanlib, discusses the impact of SA’s low household savings
In this edition of the Business Day Spotlight we're discussing the economics of SA’s low household savings.
Lings says the sudden and dramatic impact of the Covid-19 pandemic has highlighted how unprepared South Africans are for unforeseen financial shocks. Deprived of a steady income, many have had to dip into long-term savings to fund day-to-day expenses, which will no doubt affect their longer-term savings plans.The discussion begins with Lings explaining the importance of household savings to the country and its growth prospects.
Outside funds that people have to put away for retirement through employers, Lings says it would be good for South Africans to have about three months of expenses set aside as part of an emergency fund. Once in place, people can continue to actively set money aside and create a general culture of saving.
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