Watch South African rand weakened ahead of BRICS summit video

The South African rand weakened in early trade on Monday, ahead of a week packed with the BRICS summit. Picture: Supplied.

Worrying stats reveal South Africans aren’t SAVING enough

Latest figures confirm cash-strapped South Africans aren’t saving enough, which could prove seriously detrimental to their long-term future.

Watch South African rand weakened ahead of BRICS summit video

The South African rand weakened in early trade on Monday, ahead of a week packed with the BRICS summit. Picture: Supplied.

Being present in the moment and living for now is a great way to be happy, but a new survey suggests South Africans aren’t saving enough for the future. Planning for your down the line can be tricky in this cost-of-living crisis, but the Baseline survey on financial literacy says 46% of South Africans aren’t saving enough, reports Business Tech.

WHY SOUTH AFRICAN AREN’T SAVING ENOUGH

South Africans aren't saving enough
46% of South Africans aren’t saving enough. Image: Adobe stock

That’s correct, 46% of South Africans are living day-to-day, not worrying about providing for their future and actively saving money. Of equal concern is the finding that one in three South Africans does not have a retirement plan either.

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Speaking ahead of Money Smart Week South Africa (MSWSA) 2023, Tax and Financial Sector Policy Division Deputy Director-General, Mmakgoshi Lekhethe, had this to say about why South Africans aren’t saving enough:

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“As the National Treasury, we are worried about the statistics for people who expect to rely on government pensions because, in the absence of growth, we do not want to end up with a society that relies on government handouts as opposed to saving money for their own future,” said Lekhethe.

THE AVERAGE SAVINGS ONLY LASTS 3 MONTHS

South Africans aren't saving enough
Photo: Pixabay

The Baseline survey on financial behaviour was conducted by the Financial Sector Conduct Authority (FSCA) in partnership with the Human Sciences Research Council (HSRC). South Africans scored 51% in overall financial literacy.

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On top of the stat that South Africans aren’t saving enough, worryingly, the 26% that have funds set aside a for rainy day, don’t have nearly enough. According to the survey, the average savings currently will only last three months.

EMPOWERING YOUNG SOUTH AFRICANS

South Africans aren't saving enough
Image: File.

“The financial decisions we make today will make a significant impact on our security and our standard of living given the current economic condition that people find themselves in, and therefore saving and being money smart is a strong foundation towards securing your future,” Lekhethe concluded.

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MSWSA 2023 is a financial literacy campaign promoting better education about personal finances. It runs from 28 August until 3 September 2023, click HERE for more info. Improved financial literacy will pave the way for positive actions, which are important for wealth creation and preservation in the country.

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