CASH FLOW PROBLEMS / DEBT RIDDEN SOUTH AFRICANS

CASH FLOW PROBLEMS / DEBT RIDDEN SOUTH AFRICANS

Anna Rosenberg, senior policy adviser at the Association for Saving and Investment SA:

“Long-term insurance statistics indicate that consumers are grasping at straws for financial survival, with many policyholders resorting to surrendering their savings policies to access much needed cash”

Labour lawyer Michael Bagraim :

“People from MD’s to cleaners are choosing voluntary retrenchment and even resigning from secure jobs to get access to money to pay off debts”

Example of client swimming in debt. If he resigns he can then collect his pension of about R350,000 and a severance package. Rather than lose his car and his house, he takes a voluntary retrenchment to pay off his debts. But he has not found another job.

Carel van Aardt, from Unisa Bureau of Market Research:

“Many people are tapping long-term investments as a coping strategy. The strategy of cashing in policies has increased in the past 3 years”

Werner Buys Labour Advisor:

“ Deals with workers who intentionally commit offences to get fired to get access to their pension”

Nico Esterhuizen General Manager of Insurance Risks at The South African Insurance Association:

“Consumers are cutting back on cover , only 35% of motorists on the road are insured”

John Loos FNB Economist :

“A ratings downgrade and depreciation of the rand could lead to interest hikes, putting households under severe pressure.

Reported in Sunday Times 19/02/2017 by Claire Keeton