Sanlam has released its annual retirement\u00a0Benchmark Survey for 2017,\u00a0\u00a0focusing on the financial wellness of employees in the workplace\u00a0– and the worrying\u00a0amount of financial stress apparent in South African homes.<\/p>\n
The survey\u00a0– which covered\u00a01,317 well-educated professionals, with 60% earning more than R300,000 per annum\u00a0– found that 70% middle class workers all experienced some form of financial stress.<\/p>\n
\u201cThe research shows that financial stress impairs the quality of our lives and diminishes our ability to be productive at work,” said\u00a0Viresh Maharaj, CEO of Sanlam Employee Benefits: Client Solutions.<\/p>\n
“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.”<\/p>\n
The survey found that:<\/p>\n
A third of respondents said they\u00a0cope with their debt by reducing expenditure.<\/p>\n
\u201cThe starting point to address many of the issues is to gain a better understanding,\u201d said Trurman Zuma, chief executive of Sanlam Personal Finance: Savings.<\/p>\n
\u201cWhile the level of understanding is at an all-time high due to the combined efforts of the media and providers \u2013 it is still too low. Our people need help. In this context, help means advisors who are able to work with the middle class to educate and help coach them towards consistently displaying the right behaviours and making better decisions.”<\/p>\n
Zuma noted that while just over 80% of the respondents indicated that they value financial advice, only 52% of respondents actually had any form of financial\u00a0advisors.<\/p>\n
Another possible approach is to discuss issues of debt directly through the workplace, said\u00a0Maharaj.<\/p>\n
\u201cAccess to and 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,” said Maharaj.<\/p>\n
“Workplace based financial wellness programmes provide the opportunity for employers to address the drivers of their employees\u2019 financial stress at scale – and in an inclusive manner.”<\/p>\n
He noted that 60% of respondents indicated that they would be interested in such programmes with another 20%\u00a0being open to such initiatives. Respondents expressed an appetite for such programmes to include access to financial advisors, financial literacy training and budgeting tools.<\/p>\n