“With the cost of living climbing, small but smart adjustments to everyday expenses can make a big difference in maintaining financial stability,” says Leruo Malumo, Santam’s head of product strategy, development and governance.

“Finding ways to cut down expenses can be a financially empowering exercise, but it’s crucial to ensure the cuts you make today won’t result in costly consequences down the line.

When it’s time to trim excess expenses, common targets are purchases such as insurance and, like the concerns about early withdrawals from the two-pot system, there is a future cost that’s not being taken into consideration. Instead of cancelling insurance to cut costs, review your policies with a financial adviser to ensure you’re not over- or underinsured.”

Sharon Hamman, Momentum’s senior legal adviser, highlights a recent Financial Sector Conduct Authority survey, which found that “only 51% of South Africans are financially literate by definition”, adding that this paves the way for financial insecurity.

“Without financial knowledge and the right foundations in place, many South Africans remain vulnerable to economic hardships that can strip them of opportunities and stability. Financial security is not a privilege, but a right we should all be fighting fo. Economic realities are constantly shifting, and financial security doesn’t happen by chance.

It requires planning, preparation, and the right mindset. Financial illiteracy hampers financial stability and progress, adding to inequality, not just for the current generation but also for those who follow.

“Financial illiteracy has a domino effect — limiting access to education, healthcare, and basic needs. We can take control by advocating for financial literacy, taking responsibility for our knowledge levels by reading and asking the right questions, and by making a conscious effort to upskill ourselves to allow us to make informed decisions that protect our financial future.”

Hamman says staying informed, planning, and seeking expert advice can help secure your financial future.