PODCAST | SA consumer savings in peril

The state of savings in SA is the focus of this edition of Business Day Spotlight. 

Host Mudiwa Gavaza is joined by Babalwa Nonkenge, head of retail investments at Nedbank.

Nonkenge outlines the state of savings in the SA economy. 

South Africans still want to positively change their financial situation through saving and investment. This is according to Nedbank’s segment tracker. Despite the SA economic outlook, gross savings have average 14.6% of GDP since 2010 compared to a world average of 26.8%.

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The survey revealed that nearly all banked respondents have a basic savings account, with 46% owning notice accounts and 42% fixed deposits. Notably, there is lower uptake of more structured, long-term savings and investment accounts. Further, 18% of respondents have a retirement annuity or provident fund, and 21% hold unit trusts. 

Nonkenge says this shows that South Africans are interested in savings and investment.

Through the discussion, she explains challenges in having funds for saving in the country; the economic reality for many South Africans; ways in which people can have more financial discipline; trends in personal finance; and the support that banks can give. 

Given research indicating that the uptake of long-term investments is low, the banker also highlights what route consumers can take to bridge the gap between short-term investing and long-term investing. 

Business Day Spotlight is a MultimediaLIVE Production. 

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