SA faces ‘savings disaster’

2010-09-07 13:41

South Africa faces “social disaster” if people allow financial pressure to interfere with their savings goals, an expert has warned.

Chris Busschau of the Financial Intermediaries Association of SA said research had confirmed that the vast majority of consumers would retire without the capital to sustain even a moderate lifestyle.

“Many will in reality be destitute, without family support,” he said in a media release.

The enormous financial pressure experienced by South Africans over the last few years had resulted in an increasing number of people deviating from their long term savings goals.

This put them and their futures at risk.

“It is hardly surprising that market research is uncovering a looming social disaster,” he said.

People often allowed their immediate wants or needs to take priority over provision for the future.

This was often evident in people cashing in their retirement policies to fund purchases such as home improvements, a new car or even luxuries such as holidays.

He said it was crucial that consumers started to make themselves aware of their true savings requirements.

“It is important that people start taking their financial commitments seriously and have an overall financial plan that addresses both their short and long term needs.

“If they don’t do this, then what may be classed as poor savings habits now can prove to be disastrous a few years down the line.”

Even if they were struggling financially, they should not put themselves at further risk by cancelling short- or long- term insurance policies or by “buying down” on their health insurance or medical aid cover.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.