It’s a well-known fact that many South Africans are battling to get out of debt and save.

The most recent update of the Old Mutual Savings and Investment Monitor shows that only 20 per cent of working metropolitan South Africans have any kind of formal savings, and overall financial confidence and satisfaction is steadily declining.

In fact, the number of respondents saving less than last year (41 per cent) is the highest that it has been in the six years that the survey has been conducted.

With the festive season here, the pressure and strain on breadwinners will only intensify.

Shirley Smith, Chief Operating Officer at Old Mutual Finance, says this crisis has prompted South Africa’s leading financial services provider to develop the Old Mutual Money Account, a fully functional transactional account that helps you save every time you swipe.

Smith says Old Mutual aims to make it easier for consumers to save and avoid short-term debt.

We regard this as a national priority. The Savings and Investment Monitor shows that more than half of working South Africans, if faced with an unexpected expense of R10 000 or more, would be forced to take out a personal loan, rely on credit facilities or borrow from family or friends.

“Another 30 per cent say they have no idea at all how they’d handle an expense like that. South Africa has by far the lowest savings levels of the five BRICS (Brazil, Russia, India, China and South Africa) member states,” she adds.

Measured as a percentage of gross domestic product (GDP), our national savings rate is just 16,5 per cent, compared to Brazil at 18 per cent, Russia at nearly 30 per cent, India at more than 30 per cent and China at more than 50 per cent, according to National Treasury. Key to creating a better future is developing a savings culture and increasing the nation’s savings rate.

High levels of national savings strengthen the general economy, accelerate socio-economic development and enable us to capitalise on growth opportunities.

Savings innovations like the Old Mutual Money Account will help address this. Visit their website, www.oldmutual.co.za for more

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