How this will impact those affected by the country's huge economic disparity the most.
A study of 160 countries, spanning 60 years of economic history, establishes that there's no country that has been able to transition from "poor to prosperous" without a high savings rate.
And that households are one of the most important contributors to a country's overall level of savings rate.
Yet, SA's household savings rate is among the lowest in the world at only 0.5%. This is far below that of many emerging market peers like Brazil, Chile or India, where households save between 5%-9% of gross domestic product.
The two-component retirement system which is being put in place in SA-the "twopot system" aims to make a contribution to repairing SA's weak state of saving. The changes have important implications for people planning for retirement.
The new system will be implemented on 1 September and will apply to private and state pensions.
The new system introduces two components to a person's retirement savings:
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