SA’s household savings crisis is of grave concern. An analysis was done by savings fintech start-up MyTreasury.co.za, has distressing news. South Africa’s household savings rate comes last when ranked against the G20 countries. It means that too many South Africans are living in debt or eating into their capital.
Old Mutual Savings Monitor reports as follows: among urban working households,
- an alarming 40% of respondents said they have no form of formal retirement savings at all
- Thirty-two percent of respondents said they would rely on the government
- 38% said their children have to support them in retirement.
The situation is likely much worse among the unemployed population.

Savings tips and campaigns
During national savings month, many organisations are coming out with useful tips and campaigns. This should get South Africans excited about saving.
Recommendations about how to save range from lifestyle changes – such as hunting for bargains, limiting luxury spending, and committing to putting away a fixed amount of money every month – to more long-term strategies like setting financial goals, consolidating debt, and paying off loans early.
Savings make a big difference
“Efficient saving can make a massive difference to your wealth. Moving your cash from a call account that offers returns of 3% to a long-term fixed deposit with an interest rate of 10%, for example, would effectively double your wealth over 10 years!”
“Savings accounts are a great way to encourage smarter wealth management,” says Kopelowitz. “Just about everyone has a bank account, and by urging people to see their ordinary bank accounts as tools for actively generating income, we hope to make South Africans keener to save.
MyTreasury.co.za is a gold member of AlphaCode, a club for fintech start-up entrepreneurs powered by Rand Merchant Investments. As AlphaCode head Dominique Collett says: “Consumers need the right information to make good financial decisions.” She adds that the complexity of savings products and different interest rate structures and calculations makes it difficult for consumers to accurately compare the available options, and is a major problem in growing SA’s savings culture