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64% of Ghanaians Are Suffering Financial Stress: Report

Old Mutual Financial Services Monitor
64% of Ghanaians Are Suffering Financial Stress: Report

A report by Old Mutual Financial Services Monitor (OMFSM) has asserted that about 64% of Ghanaians among the working population are suffering from financial stress.

The finding denotes that much of Ghanaians among the working population are in the lower-income group.

The findings underscore disparities, revealing elevated stress levels among individuals with lower incomes thus earning below GH¢3,000 per month, and those engaged in the informal sector.

Furthermore, 55% of survey participants reported incomes below pre-2022 or pre-recession levels.

The study revealed that 44% depend on a single source of income, while 24% engage in multiple income streams as PolyJobbers, a trend particularly prevalent among those earning GH¢3,000 or more.

Despite the significance of retirement planning, less than a quarter prioritize it as a savings goal.

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Only 37% have initiated savings for retirement, and confidence in retirement provision is low, scoring 5.8 out of 10.

The research highlights a low adoption of formal retirement products, with only 20% holding a pension/provident fund through an employer.

Furthermore, 88% lack life cover, considering it a non-immediate priority and too expensive.

Regarding employee benefits, 28% of formal sector workers lack them, and among those who have them, medical/health insurance (28%) and pension/provident fund (20%) are the most common.

A noteworthy finding is that 54% of respondents own a business, primarily self-financed from business funds or personal savings.

The data also indicated a preference for debt avoidance, with only 11% seeking funding from financial services companies.

Source: OccupyGh.com 

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