The Hidden Impact of Financial Stress on Mental Well-Being
Financial pressure has quietly become one of the most powerful forces shaping emotional well-being.
Across South Africa, the weight of financial insecurity is not just about empty bank accounts — it’s about how uncertainty seeps into daily life, eroding mental resilience and peace of mind.
As living costs rise and retirement feels further out of reach, many are finding that financial stress leaves lasting marks on their overall health and happiness.
Financial Insecurity and Its Impact
Money concerns reach far beyond unpaid bills. When financial confidence disappears, emotional strain often follows. According to Sanlam’s Age of Confidence campaign, most South Africans may need to work until the age of 80 to retire comfortably — a reality that sparks deep anxiety.
The 2025 Sanlam Benchmark Report further reveals that 44% of households have already tapped into emergency savings just to stay afloat, showing how financial fragility directly impacts mental and emotional stability.
The link between financial insecurity and mental resilience is well-documented. Research indicates that individuals with stronger financial resilience experience about a 37% lower risk of developing mental health disorders. This connection is largely influenced by two factors: life satisfaction and household expenditure.
When people feel secure about their finances, their psychological outlook strengthens. But when uncertainty grows, symptoms like stress, sleep disruption, headaches, or even weakened immunity become common companions.
Freepik | Increased living costs lead to financial stress, which leaves lasting marks on well-being.
Living Longer, Worrying More
By 2050, approximately 15.4% of South Africans will be over the age of sixty. Yet living longer doesn’t always translate to living better. Rising healthcare costs and chronic conditions — which Medscheme reports affect 13% of people under 50 — create additional concerns about financial readiness for old age.
Many employees admit they’re not prepared for retirement. This lack of preparation chips away at confidence, forcing some to extend their working years or drastically scale back their lifestyles. For those expecting rest and relaxation in their later years, the continued pressure to earn can trigger burnout, fatigue, and emotional exhaustion. The inability to step back from work when the body and mind demand rest often leads to depression and a loss of self-worth.
Retirement today has become a transitional phase rather than a full stop. People are increasingly turning to part-time work, volunteering, or creative pursuits to find renewed purpose. However, when financial pressure delays this transition, frustration builds. Scaling down expectations — instead of “living large” as once imagined — has become the norm, amplifying stress and reducing life satisfaction.
Factors That Shape Resilience in the Workplace
Workplaces play a major role in buffering the effects of financial strain. Key factors that influence how employees cope include:
1. Socioeconomic status – Higher income and education often correlate with better mental health, even when retirement is delayed.
2. Job nature – Physically demanding or high-pressure jobs have greater negative effects on emotional well-being.
3. Choice vs. necessity – Continuing to work by choice feels empowering; being forced to do so is mentally taxing.
4. Support systems – Access to counseling, flexible work arrangements, and community support can ease the burden.
These insights underline the need for collective change. As Kanyisa Mkize, CEO of Sanlam Corporate, emphasizes, leaders, employers, and policymakers must collaborate to rethink financial resilience and redefine retirement for a healthier future.
Strategies to Reduce Financial Stress
Freepik | Modern online tools and mobile apps use gamification to make financial learning easy and engaging.
Several strategies can help rebuild financial confidence and reduce stress:
1. Financial literacy and communication
The new Two-Pot System introduces flexibility but also confusion. Understanding the long-term effects of withdrawals, tax implications, and saving strategies is vital. Employers can play an active role in promoting transparent financial education.
2. Integrating health and retirement planning
Sanlam’s partnership with Fedhealth — making it the exclusive medical aid provider — highlights how aligning health care with financial planning can create a more balanced well-being model. Combining wealth and health strategies ensures individuals are better protected.
3. Rewards and Incentives
Debt remains one of the biggest causes of distress. As Nzwa Shoniwa, Managing Executive of the Sanlam Umbrella Fund, notes, incentive programs work best when they’re part of a broader financial wellness system, not isolated perks.
4. Digital wellness tools
Accessible online platforms, mobile apps, and gamified learning make financial education easier and more engaging, helping people stay informed without feeling overwhelmed.
Confidence as the Core of Resilience
Financial confidence acts as a shield against life’s pressures. When people believe in their ability to manage finances, they become mentally stronger. Without that assurance, stress silently erodes both physical and emotional health.
Financial planning is no longer just about money; it’s about mental health, dignity, and quality of life. South Africans deserve to retire with peace of mind — not anxiety. Creating that reality means shifting the conversation from financial numbers to overall well-being. When confidence grows, so does resilience, allowing people not just to live longer but to live with strength, purpose, and stability.