AIDS impacts on savings for future
People suffering from AIDS will often not even reach retirement age.
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As the South African business community gathered for the annual
Institute of Retirement Funds (IRF) conference that was held in Durban on
Monday, sobering reports by Nathea Nickolay, the Manager of AIDS Risk Counseling
for Metropolitan's Employee Benefits, were heard.
Nickolay pointed out the enormous difficulty of getting people to save for
their future, while at the same time facing the fact that most will need their
money for short term financial issues during their lifetime.
Nickolay was speaking on the impact of AIDS on the pending National Social
Security Fund which is meant to encourage a greater number of South Africans to
put away money for their retirement.
The IRF was told that the average 20 year old South African would live to the
age of 56, meaning that most would not even reach retirement age.
"The big question is how to design a social security system that balances the
provision of death and disability benefits on one hand and retirement benefits
on another hand in a country where the average life expectancy at birth is 51
years," said Nickolay.
She also noted that the government's plan was to target a group of people who
earned minimum wage or lower, who could not even afford basic medical insurance
and would probably not live out their fifties.
Nickolay was invited back to speak at the IRF Conference after causing a stir
two years ago with her Live the Future 2025 AIDS Scenario presentation that
showed what would happen to the country if the AIDS issue was not treated
properly, compared to what would happen to the economy if it was.
It is estimated that 20% of the current 20-64 age group is HIV positive,
causing a negative impact on the general workforce.
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