The word savings in the context presented in my post is used to define that part of one's income (wages, profits, interest, rent) that accrues to him or her during the course of a week, month, year, or any other period and that is not spent. Money in supper, stocks and bonds, bank accounts, property, etc is called wealth.
Yes there is a lot of funds stored in the superannuation funds and a considerable amount overseas. Actually there is the impression that thanks to that in 10 or 15 years time our currency could be gaining the status of a reserve currency.
A weak or strong aggregate demand impacts upon the labour market via the markets for goods and services. A weak aggregate demand causes loss of jobs, reduced hours and stagnate wages. However with the lockdowns there is also the need to keep the capacity of production intact so that the recovery can be a V shaped one., which implies the need for the businesses to be able to reopen fast. Everything must be there except the clients and the workers, which can come a very short notice
