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:
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Kriel's Springbok dream is still alive
Bulls utility back David Kriel's dream of playing for the Springboks is still alive and kicking as he targets another strong season for his franchise in the United Rugby Championship (URC) and Champions Cup.
Proteas wrap up ODI series in style
Middle-order batter Tristan Stubbs made an international breakthrough yesterday, compiling his maiden century as the Proteas men's team closed out a superb day for South Africa's national cricket sides.
Broos is at ease with PSL stance
Bafanal Bafana head coach Hugo Broos has praised the Premier Soccer League for allowing him more time to prepare his squad for their two 2025 Africa Cup of Nations Group K qualifiers against Congo-Brazzaville.
Bayern visit bogey side Frankfurt
Bayern Munich travel to bogey side Eintracht Frankfurt tomorrow looking to rebound having dropped points twice in the space of a week.
Valjalo on home turf to defend title
The date has been set for South Africa's premier Skateboarding contest where the country's best skaters will battle it out to see who will be crowned event champions.
Muzi ready for Kranji challenge
Joburg Spring Challenge races have attracted top fields.
Stories from the dot-com era
Some compare the high prices of today’s tech giants to the pricing in the stock market back then.
'We don't want to die'
Over 1000 people killed and hundreds of thousands more flee their homes.
Heart of nation at stake
Can a pledge to protect reproductive rights help Kamala Harris become the first woman to win the White Abortion has never been so close to the heart of an American presidential election, but this is the first to be held after access to the procedure was banned or restricted across much of the country, following a landmark Supreme Court ruling.
Kim ‘ready to nuke all'
North Korean leader Kim Jong-un said his country would use nuclear weapons \"without hesitation\" if attacked by the South and ally the United States, state media reported yesterday.
