Treasury is taking aim at the savings of the public, especially those sitting in pension schemes. Fin24 reports that
[The] South Africa[n government] is looking to strengthen its social security system by encouraging a higher savings rate among its highly indebted households…
There’s not much detail in the article of how Treasury would want to achieve this. Jacking up interest rates will be the most effective way to increase savings and curtail credit extension. It would also be effective if Treasury stopped dissaving by running a budget deficit (i.e. not borrowing) each year, which would lift the national savings rate. Don’t expect Treasury or the reserve bank to even mention the possibility of these measures, however. In a Keynesian world, only by borrowing more and spending more can the sum of all individuals result in an increase of savings….
Most likely you can expect more measures that will force people to pay a monthly contribution to the state pension scheme.
The Treasury is also looking at ways to discourage people from cashing in early on their pension funds and reduce the costs of the funds.
Once these pensions are locked up, it will give the government the resources to firstly fund its borrowing, and secondly to ‘invest’ in its social (mal)investments like e-tolls.
If you don’t trust government police, or trust government to fix and maintain roads, infrastructure, manage water supply, or to provide good schools, how can you expect them to do what’s best with your pension?