With education expenses increasing and our ability to save for retirement coming under pressure from inflation, South African families must tread a financial tightrope carefully to secure both their financial well-being and their childrens aspirations, according to Old Mutual.
During South Africa's Youth Month, Old Mutual Personal Finance Head of Advice Lizl Budhram highlights this critical financial dilemma. 'Navigating the financial demands of saving for both education and 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, she 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 arent saving enough for retirement. Retirement should take precedence because there are no loans or scholarships for your golden years.
Finding the equilibrium between saving for education and retirement requires strategic planning and disciplined execution. Your financial future is a marathon, not a sprint, Budhram advises. The peace of mind that comes from knowing youre prepared for both your retirement and your childrens education is invaluable.
