Namibians’ savings last only three months

One out of two employed Namibians say they their savings will only last them three months in the event they lose their jobs.

This is most common among people between the ages of 18-29.

According to the Old Mutual Financial Service Monitor, the majority of people are saving primarily for their children’s education, followed by goals to own a home.

“One in two Namibian consumers note their savings would not last them for more than three months, should they lose their main source of income,” reads the report.

However, very few of them have savings for unexpected expenses or situations such as losing a job.

The report notes that “66% of working Namibians currently do not have enough money at the end of the month to cover unplanned events.”

It further states that people who are 50 years and above have prioritised saving for unexpected expenses, followed by those between the ages of 30-49.

Additionally, the report shows that only 25% of working people prioritised saving for a comfortable retirement.

The main reason given is affordability pressure especially among lower income earning consumers.

“Saving for comfortable retirements ranks fourth among saving goals but first among older and higher income earners,” reads the report.

The data also shows that 4% own or part-own a business, and one in five are saving to start one, 15% belong to a stokvel, and 18% invest in livestock, while only 22% feel confident about their retirement savings.

Bank Windhoek spokesperson Samuel Linyondi says people should work on saving habits which help build a healthy safety net for unexpected financial situations.

“It is generally believed that one should put away funds equivalent to three months’ monthly expenses to build up a financial safety net.

Saving for a specific goal motivates you to take control and responsibility of your finances,” says Linyondi.

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