OVER 72% OF RESPONDENTS SAY THEY ARE FINANCIALLY STRESSED

medical scheme contributions in retirement.

Viresh Maharaj, the chief executive of client solutions at Sanlam Employee Benefits, said the research shows that financial stress lowers the quality of our lives and makes us less productive at work.

“This is our middle class – the spine of our economy, our tax base, and our hope for the future. And they are stressed. We believe that the findings point to a dire need for financial coaching and increased employer involvement in the financial wellness of employees,” Maharaj said,

He said the National Credit Act has done little to prevent people from buying things they could not afford. “The fact is that it is much easier to get a R10 000 loan than to get the same amount to invest,” he said.

When it comes to financial advice, the survey found that 34.67% of respondents said they turn to Google to find answers to their money problems, while 40% said they approach family, friends or colleagues. Fiftytwo percent said they have a personal adviser or broker.

Trurman Zuma, the chief executive of Sanlam Personal Finance: Savings, said that to get out of a financial mess, you first have to understand the spending behaviour that led you into the situation in the first place, and then you have to seek help.

“Help means turning to advisers who are able to work with the middle class to educate and coach them towards consistently displaying the right behaviours and making better decisions. In fact, just over 80% of the respondents indicated that they do value financial advice.

“Good-quality advice can have a material impact on financial stress, but access to and the affordability of quality advice may act as barriers to many respondents, as only 52% of respondents have advisers.”

Maharaj said employers have a key role to play in putting employees on the right track financially, which can help employees to become more productive.

“Access to and the affordability of quality advice are issues across the middle class and more so for blue-collar workers, but this can be addressed via the mechanism of the employer. Workplace-based financial wellness programmes provide the opportunity for employers to address the drivers of their employees’ financial stress.”

kabelo.khumalo@inl.co.za