Namibia, land of the financially brave

We pride ourselves on being The Land of the Brave: Our rugged and arid country means we Namibians are hardy and very
resilient. We can face anything and often have.
But what about financially speaking, are we ready and prepared for anything? Does it make sense that 49% of Namibians believe there’s no alternative than getting into debt?
To find this out and to see if we are bravely planning for our financial futures, or are we brazenly heading into our future without a financial
plan, Old Mutual conducted a survey. With 41% of those surveyed never discussing finances at home, the information does not bode well. More than half of the people don’t know who to turn to for financial advice. In a series of articles information about our personal financial well-being, expectations regarding money and planning based on income and wages and investment will be discussed and analysed.
Are Namibians smart and financially save and sound? Or, are we still just hoping our children will and can take care of us?
In fact, 91% of the respondents believe that their children will take care of them in old age. That is a great amount of faith and hope to put in the future generation. We teach our children to be independent, does that not also mean that we have to be independent too?
More than a quarter of the people are not saving for old age. Financial independence far into old age needs to be saved for; at this moment only 16% of working Namibians save for retirement and their golden years. This means that 84% of Namibians are not saving for retirement; will all the children really step up when your old age is upon you? Or will they have their own financial burdens and responsibilities?
The Savings and Investment Monitor is not a scare tactic by Old Mutual, far from it actually. But, with 53% of those asked believing they won’t have enough money when they retire, it is something they should be well aware of. Despite some worrying facts and figures the survey also showed that 82% of the respondents believe their financial situation will improve and 74% of the people have confidence in the Namibian economy.
This indicates there is a great future for Namibia and Namibians. Not just for those earning the big bucks, but with the right approach, attitude and advice every working person can feel as confident in their own ‘economy’ as they do in the Namibian economy. With 96% of those surveyed confessing to wanting more knowledge on how to save. There’s a deep desire to handle, deal and know more about money, people don’t know where to get the information. Old Mutual is making it easier and more accessible.
If you look at some of the statistics we truly are the land of the financially brave. 66% of women perceive themselves as ‘single mothers’, fending and earning money for themselves and their children with no safety net. On top of that a mere third of Namibians belong to some type of pension plan or provident fund. With 30% of the people not planning to invest their money or earnings at all, it paints a bleak picture.
The percentages don’t lie and how can the nation hope to develop and grow if every month is a financial struggle and minefield. If the odds are stacked against you, are you still being brave or foolhardy? Some would say ‘foolhardy’ and totally unnecessarily so.
With some simple planning and organising the future can be faced with confidence and peace of mind. At present 54% of the respondents are confused by the world of financial services. With the right information, support and professional know-how, the 77% of those surveyed need not feel ‘stressed-out’ by dealing with personal finances. With close to 30% being indebted through store credit, are we really making the right financial decisions, or just creating a bigger financial ‘black hole’ for ourselves.
Deciding to take the plunge and getting your financial affairs in order is actually the ‘brave’ thing to do. It takes courage, foresight and maturity to do this. It is also the right thing to do for Namibia. The impact that individual savings has on the economic development of a nation cannot be underestimated. It fuels the economy and large scale investments.
Should you be interested in obtaining sound financial advice on your future, please feel free to SMS " Financial Planning" to 65656 or contact us via [email protected] and we'll contact you.


Kassie:


Company Profile Old Mutual
For nearly 95 years Old Mutual has been a leading Namibian financial services company offering customer-focused investment and savings options. These solutions comprise private wealth accumulation (including retirement savings, and risk protection: life, disability and health and short-term insurance) and asset management (including unit trusts and portfolio management).
Today, we have over 900 dedicated staff, operating from 24 branches, looking after the needs of over 340 000 clients. Old Mutual dominates both the local life insurance market and asset management industry.
In addition, Old Mutual is a leader in pension fund administration, is locally developing the property investment side of the business, and includes in its group of companies the Old Mutual Short-Term Insurance Company of Namibia, previously Mutual & Federal.
Our commitment to economic transformation is two-fold. Our Old Mutual Foundation is funded with 1% of Old Mutual's profits after tax each year, and communities across Namibia are positively impacted through our N$5 million plus annual commitment to enhancing the nation's core areas of education, sport, community development, and skills and capacity building.
Our broader economic transformation commitment also includes the management of our Midina Fund (Managing Infrastructure Development in Namibia), which provides debt financing for infrastructure development projects. Investors in the Midina Fund - which includes third parties - are provided the opportunity to invest locally and earn market-related returns whilst contributing to an uplifting environment for Namibians.
Over N$1 billion has been invested in alternative investments of this kind to date, enabling the development of medical facilities, shopping centres and numerous land service delivery projects across the country.
Our customers know that they have bought into a company that has both world-class standards, and real investment into the communities within which it operates.
To continue the conversation with us, contact [email protected]