By Edward Dankwah, GNA
Accra, May 13, GNA – Madam Vuyokazi Mabude, Head of Knowledge and Insights at Old Mutual, says Ghanaians are beginning to show renewed confidence in their financial outlook despite ongoing economic vulnerabilities.
She said findings from this year’s financial wellness report revealed that more people were cutting back on expenses, saving more, earning higher incomes, and recovering gradually from the financial pressures experienced in previous years.
The Head of Knowledge and Insights was speaking during an engagement with the media at the Latest Old Mutual Financial Wellness Monitor in Accra.
Madam Mabude said confidence in the economy had nearly doubled, with almost seven out of 10 respondents believing conditions would continue to improve due to a more stable macroeconomic environment and improved governance systems.
She explained that many people were now able to better manage household expenses as prices of goods and services declined, allowing them to save for businesses, children’s education, and other needs.
The report also showed improvements in debt management, with 67 per cent of respondents indicating they had less debt compared to last year, while more people were proactively engaging creditors to restructure repayments.
In addition, 37 per cent of Ghanaians surveyed said they were earning more than they did in previous years.
Despite the positive trends, Madam Mabude warned that many people remained financially vulnerable to unexpected shocks such as medical emergencies and sudden loss of income.
She noted that more than half of respondents would not be able to survive beyond three months without a stable income, making income security a major concern.
“The report further revealed low retirement planning among Ghanaians, with only about one-third actively saving toward retirement, many of whom were not using formal retirement or banking products,” she added.
Madam Mabude cautioned that failure to plan for retirement could worsen the burden on the “sandwich generation,” adults supporting both children and elderly dependents.
She encouraged Ghanaians to seek proper financial advice, avoid risky financial decisions, and adopt long-term savings habits to strengthen their financial security.
The Head of Knowledge and Insights urged people, especially young entrepreneurs and individuals with side businesses, to manage their finances carefully and avoid investing essential household income into high-risk ventures.
Mr. Ray Punungwe, Chief Executive Officer, Old Mutual Ghana, called for increased investment in financial education and improved access to trusted financial advisory services to help Ghanaians make informed financial decisions.
He said Old Mutual’s financial wellness research was aimed at understanding the financial realities and confidence levels of consumers in order to develop products and services that meet their needs.
“One of the key findings from the research was the need for stronger financial literacy, as many people continued to make important financial decisions without adequate information or guidance”
“As an industry, we still have a lot of work to do in terms of financial education,” he added.
He explained that Old Mutual intended to invest more resources into educating consumers on available financial options while also improving access to trained and trustworthy financial advisors.
Mr Punungwe noted that there was still a trust gap within the financial advisory space and stressed the need to ensure advisors provide accurate guidance to consumers.
He observed that many people perceived financial advisors as serving only wealthy individuals, calling for broader access to free financial advice to help consumers make sound financial decisions.
Mr Punungwe assured customers that institutions such as Old Mutual remained committed to protecting clients’ investments through reliable financial products and guarantees.
GNA
Edited by Linda Asante Agyei