A recent survey among South Africans has revealed that the increasing number of people indebted and overspending their monthly salaries is evidence of a lack of financial literacy. <\/p>\n\n\n\n
Conducted by the Organisation of Economic Co-operation and De\u00advelopment (OECD), the survey revealed South Africa\u2019s financial literacy rate is at 42% of the adult population.<\/p>\n\n\n\n
This survey is informed by findings spanning from 2021, covering the aftermath of the global Covid-19 pandemic from which the world is still reeling due to its negative impact on the socio-economy. <\/p>\n\n\n\n
The significance of these findings came under the searchlight during Smart Money Week, which is observed annually from 28 August to 3 September. <\/p>\n\n\n\n
The aim of this campaign is to encourage everyone to act, acquire knowledge, and to educate themselves about financial matters \u2013 given how the lack thereof ultimately affects every aspect of an individual\u2019s life. <\/p>\n\n\n\n
Additional evidence of the lacking level of financial literacy among South Africans is a finding made by debt counsellor and management company DebtBusters. It revealed that 63% (two thirds) of South Africans spend their take-home pay merely on paying off debt every month.<\/p>\n\n\n\n
\u201cThe effects of poor financial literacy can be devastating on your financial future, right through to retirement. It is estimated that only six out of every 100 individuals will be able to retire comfortably,\u201d says Stian de Witt, executive head of financial planning at NMG Benefits. <\/p>\n\n\n\n
\u201cFinancial literacy affects every aspect of our lives. From education, to where we live, and how we access medical care. <\/p>\n\n\n\n
\u201cThe less debt we have, the less stressed and healthier we are. <\/p>\n\n\n\n
\u201cEven just taking a few minutes every day to educate ourselves about financial matters is an investment in our future.\u201d <\/p>\n\n\n\n
Dinash Pillay, national business development manager at Glacier by Sanlam, also painted a worrying picture on South Africans\u2019 financial decision-making during the Jenwil BlueStar conference on financial well-being held on 16 August in Bloemfontein. <\/p>\n\n\n\n
The event was aimed at em\u00adpowering members of the Government Employee Pension Fund (GEPF) with knowledge to effectively manage their money post-retirement. <\/p>\n\n\n\n
Pillay revealed that 51% of South Africa\u2019s retirees could not meet their financial commitments, with 33% entering retirement debt, and the same number not having enough funds to cover their medical expenses. <\/p>\n\n\n\n
He stated that about 61% of retirees were unable to save for a rainy day after retirement due to pressures of high expenses. <\/p>\n\n\n\n
In addition, 53% of retirees still had adult dependants to support. <\/p>\n","protected":false},"excerpt":{"rendered":"
A recent survey among South Africans has revealed that the increasing number of people indebted and overspending their monthly salaries is evidence of a lack of financial 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