Time for action on savings

It is time for significant material intervention and a joint effort from government, the private sector and NGOs in order to help bring about a lasting culture of savings in South Africa as the countrys debt-ridden citizens reel under the strain of a worsening standard of living
characterised by high interest rates, and increasing fuel - and food prices.

This call to action from Sanlam CEO Johan van Zyl comes on the back of the now well known South African Savings Month an initiative by the South African Savings Institute (SASI), aimed at raising awareness of the need to save and to encourage active steps to make it happen amongst South Africans.

Dr Van Zyl says South Africas worryingly low household savings rate is exacerbating the already vulnerable scenario that the countrys poorest households face. While research and round table discussions bring the challenge into perspective, the time for talk is over. Whats now required
is a single-minded drive to institute practical solutions.

He says the financial services sector has a key role to play in changing the savings reality of South Africans through the development of affordable, fair, equitable and sustainable savings solutions that meet the needs of all sectors of our society.

Our industry, and the financial services sector in general, have an obligation to our current and future societies in this regard.

He says while the financial services industry has to focus very strongly on this aspect of savings it, together with other role players, also remain closely involved in governments proposed National Social Security System (NSSS) which we believe will go a long way to establish a social security system that will be to the benefit of our economy and our country at a household level as well as macro levels.

Dr van Zyl says while these partnerships and other processes run their course, South Africans owe it to one another to educate, inform, influence and assist wherever they can to change consumer behaviour in favour of a savings oriented mindset. In this regard, he says, the private sector, in particular, has a massive role to play through effective consumer education strategies.

It is up to those with the knowledge and means to assist, in particular, our lower income earners. Success with savings and success in a reduction of debt across the spectrum of our society depends on successful partnerships at all levels. After all, our countrys economic growth and
development is as dependent on our joint ability to develop sustainable savings vehicles as it is on our ability to take hands to eradicate
poverty.