South Africans warned to save for their future
FIASA has said that there will be a social disaster if South Africans don't plan for their future.
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The Financial Intermediaries Association of South Africa (FIASA), has warned that a the country is a "social disaster" waiting to happen as citizens fail to provide for their future.
Due to the financial pressures of today, many South Africans have deviated from their original savings goals to provide for immediate needs; however, this may backfire on them when they are suddenly faced with the need to provide for themselves in their old age.
"Many will in reality be destitute, without family support," said Chris Busschau of the FIASA in a media release.
Due to the fact that so many have opted to cash in on saving and pension plans to settle today's financial problems, Busschau believes that they and their futures are at grave risk.
Some are cancelling their short or long term insurance policies or 'buying down' on their medical aim.
"It is hardly surprising that market research is uncovering a looming social disaster," he said.
The sad thing is that many people who are cashing in on their retirement policies are not doing it because they desperately need the money.
Some are doing so to improve their homes or to buy a new car.
The FIASA said that it was crucial for consumers to determine what was absolutely urgent and what was not.
"It is important that people start taking their financial commitments seriously and have an overall financial plan that addresses both their short and long term needs," said Busschau.
"If they don't do this, then what may be classes as poor savings habits now can prove to be disastrous a few years down the line.
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