WATCH | A Critical Conversation on SA's savings culture

South Africans are among the poorest savers in the world, with a high debt burden. Only 6% of the population is on track to retire comfortably, according to the Association for Savings and Investment SA (ASISA).

A Debtbusters' 2023 survey revealed that the average South African must allocate 65% of their monthly salary to service debt. This has a day-to-day impact on the individual — but the broader picture is that household savings also serve as a vital source of finance for economic growth, with invested savings leading directly to job creation and the possibility of higher incomes, as the burden on state and society is lower.

Given the alarming debt level of the SA government, now at 74% of GDP and predicted to rise to 75% of GDP in 2025, it's clear that stimulus from the private sector — banks and other financial institutions, who manage citizens’ savings — is needed to kick-start the economy. 

Addressing these challenges is crucial and creating a savings culture in SA is closely linked to achieving the UN Sustainable Development Goals (SDGs), particularly SDG 10 (reduced inequality), SDG 8 (decent work and economic growth) and SDG 4 (quality education).   

At Sanlam Investments’ recent Critical Conversations webinar, experts explored the cultural, behavioural and underlying economic issues that inhibit household savings; as well as how businesses, government, policymakers and individuals can find solutions, together.

Watch the recording of the event above.

This article was sponsored by Sanlam Investments.