Accra: Madam Vuyokazi Mabude, Head of Knowledge and Insights at Old Mutual, has reported a growing confidence among Ghanaians in their financial outlook, despite the country's persistent economic challenges.
According to Ghana News Agency, findings from this year's financial wellness report indicate that more individuals are reducing expenses, saving more, earning higher incomes, and gradually recovering from past financial pressures.
During a media engagement at the Latest Old Mutual Financial Wellness Monitor in Accra, Madam Mabude highlighted that confidence in the economy has nearly doubled. Nearly seven out of ten respondents believe that economic conditions will improve due to a more stable macroeconomic environment and improved governance systems. She noted that many people are now better managing household expenses as prices of goods and services decline, enabling them to save for businesses, children's education, and other needs.
The report also indicates improvements in debt management, with 67 percent of respondents having less debt compared to last year. Additionally, more people are actively engaging creditors to restructure repayments. Furthermore, 37 percent of Ghanaians surveyed reported earning more than they did in previous years.
Despite these positive trends, Madam Mabude cautioned that many Ghanaians remain financially vulnerable to unexpected shocks such as medical emergencies and sudden loss of income. She pointed out that more than half of the respondents would not be able to survive beyond three months without a stable income, highlighting income security as a major concern. The report also revealed low retirement planning, with only about one-third actively saving toward retirement, often not using formal retirement or banking products. She warned that inadequate retirement planning could increase the burden on the "sandwich generation," adults supporting both children and elderly dependents.
Madam Mabude encouraged Ghanaians to seek proper financial advice, avoid risky financial decisions, and adopt long-term savings habits to strengthen their financial security. She emphasized the importance for young entrepreneurs and individuals with side businesses to manage finances carefully and refrain from investing essential household income into high-risk ventures.
Mr. Ray Punungwe, Chief Executive Officer of Old Mutual Ghana, stressed the need for increased investment in financial education and access to trusted financial advisory services to help Ghanaians make informed financial decisions. He noted that Old Mutual's financial wellness research aims to understand consumers' financial realities and confidence levels to develop products and services that meet their needs.
Mr. Punungwe highlighted the importance of stronger financial literacy, as many people continue to make significant financial decisions without adequate information or guidance. He pledged that Old Mutual will invest more resources into educating consumers on available financial options and improve access to trained and trustworthy financial advisors. Acknowledging the trust gap within the financial advisory space, he called for broader access to free financial advice to assist consumers in making sound financial decisions. Mr. Punungwe reassured customers that institutions like Old Mutual are committed to protecting clients' investments through reliable financial products and guarantees.