Namibians prefer paying for funeral cover to saving for retirement

27 Apr 2017 17:00pm
WINDHOEK, 27 APR (NAMPA) – More Namibians prefer to spend money on funeral cover and their children’s education policies than to put money away for retirement, a study on saving and investment has revealed.
Old Mutual Namibia conducted a study on saving and investment in 2016 to determine the kind of savings and investment vehicles used by urban working Namibians.
The study was also aimed at understanding Namibians’ level of debt and what kind of debt they have as well as repayment periods and patterns.
Presenting the key findings of the Old Mutual Namibia Savings and Investment Monitor at a media briefing here on Thursday, Old Mutual’s Manager for Customer Strategy Louretta Louw said Namibians were more likely to invest in an education policy and funeral cover than retirement, despite being concerned about their retirement.
“It would seem they have settled for the fact that they would have to work after retirement,” she explained.
About 76 per cent of the respondents felt that saving for education was more important than saving for retirement, while 62 per cent of the interviewees believed that funeral, death and disability cover were more important than retirement savings.
“About 81 per cent of correspondents felt that their children should take care of them when they stop working, while 61 per cent believed the government would take care of them if they could not do so themselves,” Louw said.
The study also revealed that many Namibians only save mostly after receiving their annual bonuses and mostly borrow money at the beginning of the year.
Louw further indicated that Namibians’ attitude to avoiding debt was also positive, with 81 per cent of respondents reporting that they try to avoid debt where possible.
She indicated that many of the respondents did not think that getting into debt is the only alternative in today’s society, and many consider themselves to be savers.
Most respondents access the Internet via their mobile phone and have made online purchases, but many were not willing to purchase financial products online for security reasons, she noted.
About 500 face-to-face interviews were conducted with people in Oshakati, Ondangwa, Walvis Bay, Swakopmund and Windhoek who are involved in the investment and financial decisions of their households and people responsible for their own savings and investments decisions.
Old Mutual Namibia conducts a savings and investment survey every three years.