Walking the tightrope: education versus retirement

With education expenses increasing and our ability to save for retirement coming under pressure from inflation, South African families must tread the financial tightrope carefully to secure both their financial well-being and their children's aspirations.

"Navigating the financial demands of saving for education as well as retirement is undoubtedly challenging. However, this is possible with strategic planning and informed decision-making.

"As we reflect on the future of our children, let it remind us of the importance of planning, saving and investing," Lizl Budhram, head of advice at Old Mutual Personal Finance, says.

The cost of education in South Africa is escalating rapidly. Projections from Old Mutual indicate that university tuition fees could reach R176 000 per year by 2030 and R253 000 per year by 2035, marking a 9.5% annual increase.

While education is a vital investment, Budhram emphasises the importance of prioritising retirement savings. "The reality is stark: many South Africans are not saving enough for retirement. Retirement should take precedence because there are no loans or scholarships for your golden years."