But how bad is the situation as compared to other parts of the world? Parbhoo answers in his sit-down with the OFM Business Hour below. 

The FNB cash investments CEO’s insights came as World Savings Day took place on 31 October 2022. In addition to unpacking how South Africa compares to other parts of the world, with respect to the money saving culture he also dished out tips to help one develop a healthy saving habit.

How does South Africa compare to other countries?

Parbhoo says globally people do not save enough for retirement, with statistics revealing that only 6% of the world population can retire comfortably.

However, countries in the East like Japan, China, South Korea and India have a higher money saving ratio than most nations. Whereas South Africans’ approach to money is similar to Western countries like Europe and the United States of America (USA) and centres on spending. He believes that the latter is underpinned by the rising cost of living and products that are pumped into the market to meet these "needs". 

Also Read: Five things you can save money on

Is it enough to save for retirement only?

According to the FNB cash investment CEO, it is crucial to ensure you’re putting money away for other big milestones in your life such as: purchasing a home or investing in your child’s education. Even that holiday abroad that you’re dreaming of, requires some financial planning and foresight.

Ideas to help you save money

• Place money automatically (via debit order) into a savings account each month from your salary.
• Have a cookie jar in your house where you can drop some money and when full, deposit it into your savings account.
• Look at your budget and scrutinize it to see what is necessary and what is not. That way you can spot spaces where money can be saved and added to your savings account.
• Join bank your change or money saver programs where a certain portion of money you spend is saved automatically.
• Join a stokvel or group saving scheme

Also Read: #OFMBusinessHour: Be honest about your money habits

OFM