Who decides where the money goes? Bruce Whitfiled talks to Prof. Adrian Saville (Genera Capital) about the new government plan.
Government wants you to save 12% of everything you earn, for your old age. But there's a catch: it wants to manage the money for you!
Bruce Whitfield, The Money Show host
Are you in? asks The Money Show's Bruce Whitfield.
The new government plan is outlined by the Department of Social Development in its Green Paper on Comprehensive Social Security and Retirement Reform.
Whitfield gets comment from Professor Adrian Saville from Gibs Business School.
Prof. Saville is also an Investment Specialist at Genera Capital.
While the intention – to establish a savings and investment pattern – is a good one, he has serious reservations.
For many, many South Africans it would remove the established behaviour of zero savings and create a broad-based social welfare net.
Prof. Adrian Saville, Investment Specialist – Genera Capital
Of course alongside the savings and investment pattern there's reference to a basic income grant, so this …