Sanlam supports SASI savings campaign

If South Africa's savings rate is going to improve, South Africans will have
to be more orientated towards the future, and government policy needs to
support them in gaining confidence in that future, says Sanlam Group
Economist Jac Laubscher.

Sanlam has come out in support of the South African Savings Institute's
(SASI) savings month campaign, noting that urgent action is required to
change the nation's savings focus.

Laubscher says household savings in South Africa turned negative for the
first time in 2006, and the worsening trend is continuing.

"If this is seen in conjunction with the rapid increase in the ratio of
household debt to disposable income, it paints a picture of a spendthrift
population.

"An improvement in household savings will require a complete cultural
change, with people placing much more emphasis on personal responsibility
and financial independence. The low savings rate implies an assumption that
others will bail me out if I run into financial difficulties for which I did
not take precautions."