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South Africa’s savings rate is at 0%, an all-time low

6 May 2019 8:39 PM
Tags:
The Money Show
Bruce Whitfield
Savings
Adrian Saville
GIBS
Gordon Institute of Business Science
Cannon Asset Managers
savings rate
Investec Gibs Savings Index
The Money Show's Bruce Whitfield interviews Dr Adrian Saville, CEO of Cannon Asset Managers and Professor at Gibs.

South Africa’s savings rate is at an all-time low.

The Investec Gibs Savings Index hit a record low of 56.6 in the first quarter of 2018.

The index lifted each subsequent quarter and reached 60 in 4Q/2018.

A healthy and robust savings environment means a score of 100.

There is a strong correlation between the national savings rate and economic growth.

The weak economy, high unemployment and rising cost of living make it hard for South Africans to save.

The relative ease of access to credit in South Africa is a disincentive to save.

The ease of access to retirement funds when changing jobs is also a deterrent.

The Money Show’s Bruce Whitfield interviewed Dr Adrian Saville, CEO of Cannon Asset Managers and Professor at Gordon Institute of Business Science (Gibs).

Listen to the interview in the audio below (and scroll down for quotes from it).

The savings rate is approximately zero… It’s a deeply worrying number…

Dr Adrian Saville, CEO - Cannon Asset Managers

It’s unsurprising that Government is a dis-saver…

Dr Adrian Saville, CEO - Cannon Asset Managers

We’re over borrowing relative to the place our economy finds itself at… it’s at odds with all our economic realities…

Dr Adrian Saville, CEO - Cannon Asset Managers

It’s not through lower tax rates [that the savings rate will rise], it’s through changing consumer behaviour… We are overspending… We’re underinvesting…

Dr Adrian Saville, CEO - Cannon Asset Managers

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This article first appeared on 702 : South Africa’s savings rate is at 0%, an all-time low


6 May 2019 8:39 PM
Tags:
The Money Show
Bruce Whitfield
Savings
Adrian Saville
GIBS
Gordon Institute of Business Science
Cannon Asset Managers
savings rate
Investec Gibs Savings Index

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