Editorials 12.2.2015 07:05 am

Trouble brewing in pension frenzy

Mass resignations of teachers, police and other public servants because of a false rumour about pensions herald a socio-economic disaster in the making.

Already, most working South Africans cannot afford to retire. This country does not have a healthy savings culture. National Savings Month passes by unnoticed. The household savings rate (as a percentage of gross domestic product) hovers around 1.5% in a good year. Most of us do not have realistic long-term savings plans.

For more than a year, thousands of public servants have been spooked by the idea they will not be able to access the lump sum portions of their pensions as from March 1 this year. This is not true.

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