This is according to the 2017 Sanlam Benchmark Survey, an annual retirement funding study, which surveyed more than 1 300 employees about their financial wellness. The survey described financial stress as emotions associated with the difficulty an individual or household may have in meeting financial commitments due to a shortage and/or misuse of money.
“If it was something else – if this was a disease – this would be an epidemic. If this was the flu, then 70% of South Africa said they’ve got the flu at the same time. It would be headline news,” says Viresh Maharaj, CEO of Sanlam Employees Benefits: Client Solutions.
The middle class is the spine of the economy and the tax base and a lot of South Africa’s sustainability as a nation depends on this group. The fact that almost three-quarters of this group is financially stressed “is a scary place to be”, he adds.
Almost a quarter of those experiencing financial stress said they were stressed about the issue all the time.
The five most significant sources of financial stress were short-term debt obligations (car payments, credit cards and personal loans), not being able to save for the future, not having enough for unanticipated emergencies, extended family financial obligations or ad hoc requests for financial support and paying for school or university fees.
