As a result, when the crisis arrives, like the COVID-19 pandemic, there is no shock absorber – no ‘rainy day’ fund and, given already overextended credit lines, no further funding available. In fact, instead of being able to access credit in a time of need, the reality is that individuals will be under more pressure to meet their credit obligations.

In SA, the level of long-term savings since 2008 represented by pensions has seen uninterrupted net cash outflows with benefits payments exceeding contributions. As a result, investment markets have patched the crack of a shrinking formal pensions market, like botox papering over wrinkles. With our national funding needs increasing, the local pool of savings is insufficient, requiring offshore borrowing in hard currencies. As much as it is useful to have diversified sources of funding, raising hard-currency funding, when emerging markets are under pressure due to global uncertainty, becomes costly and unsustainable.

So, how do we paper over this savings crack? We all expect that governments will provide forms of social security as a safety net. The South African government was no exception during the COVID-19 lockdown.

However, we have to question the sustainability and appropriateness of a government solution here. We need a solution which goes beyond crack fixing and enables us to build the right foundations to help survive future crises. The time has come to empower individuals and provide them with the dignity to be able to fend for themselves; the imperative for a stronger South African savings culture is now greater than ever.

Individual personal financial planning must become a national priority. We should start by laying the foundations among our learners at school, and seeking ways to reinforce a savings culture throughout their working lives, with potentially mandatory incorporation at critical junctures like starting a new job.

The importance of practical financial planning elements, like using insurance to protect us from potential crises, should be a critical part of the national education drive. Emerging research on individual financial planning shows that the biggest causes of financial hardship are events that may be insurable – like the death of a family member, vehicle accidents, and illnesses. COVID-19 has taught us lessons here, as did the last major pandemic in 1918, which was soon followed by the growth of the insurance industry.

As a country, we need to appreciate that long-term savings are a national asset. These savings should act as a shock absorber and therefore, it is necessary to shore up the current state of our savings. To achieve this, the efforts to create and sustain confidence in the savings industry need to take on a new dimension: savings need to be nurtured, protected from misuse and invested with a long-term perspective. This is one opportunity that can stem from the crisis – if we are willing to embrace it.

Corporates learnt some lessons from 2008/2009 and shifted their behaviour accordingly. This time around, individuals and the nation as a whole, will have to take some lessons and not pay school fees again when the next known unknown (crisis) surfaces. What we can be sure of, is that the next crisis will be bigger than this one and we have a duty to empower all South Africans to be ready.