Although the repo rate is not expected to decrease, it is important for consumers to rather keep their insurance cover. As the cost of living continues to soar, many South Africans are struggling under the financial pressure of rising inflation.
In a time of financial pressure, Tobias advocates shifting priorities and going back to basics with a budget. “Understanding and managing your budget is the first step to ensuring you retain crucial insurance and savings products.“By meticulously tracking your spending for a month using a budgeting app or even a simple paper record, you can identify and eliminate unnecessary expenses. This process will help you create a realistic budget that prioritises essential costs.
Premium holiday options: Some products offer a premium holiday option, allowing you to temporarily pause payments without losing cover. Contact your provider to see if this option is available to you. “Where your retirement savings are concerned, it might be tempting to cancel your plans completely, but even in this scenario you may be able to get some short-term relief by temporarily reducing your contributions. And where applicable, you can take a “payment holiday” from your retirement annuities.”