Two-pot balancing needs

PROBLEM: MANY CONSUMERS LOOKING TO SHORT TERM RATHER THAN FOR RETIREMENT

- Ina Opperman

The challenge of the two-pot retirement system is how to balance consumers' immediate needs and their long-term security.

Systemic issues such as high living costs and stagnant wages mean that many consumers may continue to prioritize their immediate needs over long-term security.

Financial inclusion is often seen as a question of whether people have a bank account or whether SMMEs can access loans, Schalk Fischer, insurance vertical sales leader at TransUnion Africa, said.

"These questions are at the surface and represent only part of a larger issue. To advance financial inclusion in South Africa, industries such as financial services, retail, telecommunication, automotive and agriculture must broaden this vision to genuinely empower individuals and communities."

"South Africa has made notable strides in this area, as outlined in the National Treasury's framework, An Inclusive Financial Sector for All. The framework reports that while 91% of South African adults have access to formal financial products and services, around 3.6 million remain excluded."

"Even among the included, effective use of formal financial products remains limited, underscoring the need for a broader range of accessible financial tools to foster comprehensive financial inclusion."