Latest news with #SanlamRiskandSavings
IOL News
3 days ago
- Business
- IOL News
First-Time Buyer in SA? Why a 10% deposit can save you over R160K
It pays to conduct a detailed analysis of your spending habits as a starting point. Image: RON AI Simon* was no stranger to second-guessing himself, and at times, he really wondered if he was making progress in life. As a junior account manager at a marketing agency, he was making a reasonably good salary for a 28-year-old. Not thriving, not rolling in it, but theoretically skirting within the boundaries of middle-class life. But often it just didn't feel like it. He lived in shared accommodation with two other people. When his girlfriend slept over on weekends, she complained about having to share a bathroom with other housemates. She also wasn't a fan of his silver 12-year-old Toyota Yaris with a massive gash across the back bumper. Many of his friends rented their own townhouses, often impeccably furnished, and with the obligatory big screen TV for Saturday's rugby game. One of his friends, at a similar earning level, bought himself a brand new Polo GTI, right out the box. But when Simon looked at his investment account balance, a gentle smile lit up his face. Living below his means, and strictly managing his cash flow, was allowing him to save between 30% and 40% of his net income, depending on each month's unexpected expenses. He'd been saving at a significant level since the age of 26, and not too long after his 30th birthday, Simon bought his first house. He did this with a 30% deposit, drastically reducing his interest rate and setting himself up to be debt-free sooner than expected. He also traded up to a partner who didn't judge his trusty old ride. There are numerous examples of South Africans who made the necessary sacrifices to save up for their home loan deposit. Although many first-time home owners opt for a zero deposit option, this will lead to significantly higher interest rate payments over the long term. Let's look at a simple example. If you buy a R1 million home with a 100% deposit, at 11.75% interest over 20 years, your monthly instalment will be R10,837, and the total interest paid over the term will amount to R1,6 million, according to FNB. But put down a 10% deposit of R100,000 and you're looking at a lower monthly payment of R9,753, and the total interest amount is reduced to R1.44 million. That's a saving of around R160,000 in interest over the 20-year period, and you stand to save far more than that by putting down a 20% or 30% deposit. 'Putting down a deposit signals that you're financially ready. It reduces the loan amount you need, lowers your monthly repayments, and increases your chance of approval. It also shows that you've built the habits needed to manage your long-term financial commitments,' says Sfiso Mahlangu, structured lending product manager at FNB Home. But how do you save for that all-important deposit? Farzana Botha, senior communications manager at Sanlam Risk and Savings, said she and her husband made several sacrifices while saving for their first home deposit. These included downsizing their car to reduce repayments and selling household items that were no longer needed, while her husband also took on side jobs to generate additional income. 'These sacrifices were tough but worthwhile – having a deposit gave us access to better finance options and made our dream of homeownership possible,' Botha enthused. She says living below your means is one of the smartest ways to reach your dream of owning a home faster. 'It starts with being intentional about how you spend and save. Work out how much you'll need for a deposit and set a monthly savings target. Automate that amount as soon as you're paid so it becomes a priority rather than an afterthought.' She recommends tracking every cent of your income and expenses, and making lifestyle tweaks where possible. This could mean cutting back on things like entertainment, takeaways and subscriptions. Even small changes like cooking at home and sharing streaming services can free up hundreds each month, she adds. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ It's well worth saving up for a bigger deposit if you can. Image: RON AI Luke Davis-Ferguson, financial planner at Fiscal Private Client Services, advises South Africans to resist the urge to upgrade their lifestyle after receiving a raise or bonus. 'Consider moving in with family, getting a roommate or relocating to a more affordable area temporarily. Selling unused items can also give your savings a quick boost.' His firm recently helped a couple create a monthly surplus of nearly R5,000, simply by reducing discretionary spending on eating out, subscriptions, and impulse purchases. Be aggressive with your savings strategy Luke Davis-Ferguson says the first step is understanding exactly where your money is going. He recommends downloading bank statements from the past three to six months and reviewing every line item. Tools such as Discovery Bank's Vitality Money Financial Analyser or FNB's Money Savings Goals can be used to create a detailed and customised monthly budget. Davis-Ferguson says the 50/30/20 rule is generally used as a starting point for budgeting. This means 50% for needs such as rent, groceries, transport and medical aid, 30% for wants like entertainment and eating out and 20% for savings and debt repayment. However, if your goal is to save for a deposit, this ratio needs adjusting. Consider trimming wants to 10% and boosting savings to 40%. Ester Ochse, product head at FNB Integrated Advice, recommends a 'pay yourself first' approach to savings, in which you automate your banking and move a set percentage of your income into a separate savings account. Ester Ochse, product head at FNB Integrated Advice. Image: Supplied 'This removes the guesswork and the temptation to use what's meant for your future on short-term wants,' Ochse said. She recommends the 80:20 rule, with at least 20% of one's income being directed to savings, or more if possible. Furthermore, it's vital that you set a clear savings goal with a clear timeline, says Tando Ngibe, senior manager at Budget Insurance. 'Break it down monthly so it feels achievable. Then automate your savings through your bank so it becomes a habit, not a decision. 'Remember, living below your means isn't about depriving yourself. It's about being intentional with your money so you can build the future you want,' Ngibe added. Tackle your debt first Before ramping up your savings, it's crucial to tackle any high-interest debt, especially from credit cards, clothing accounts or personal loans, Davis-Ferguson says. 'These debts often carry interest rates that far exceed what you could earn in a savings account, meaning they erode your financial progress,' he adds. 'Start by listing all your debts, including balances, minimum payments, and interest rates. Focus on paying off the highest-interest debts first (the avalanche method), or if you need quick wins to stay motivated, start with the smallest balances (the snowball method). 'Once you have cleared your high-interest debt, redirect those monthly repayments into your savings,' Davis-Ferguson concludes. It's important to estimate what your monthly costs will be after purchasing your first home, Discovery Bank's head of technical marketing, David Leibowitz advises. This means adding up the estimates of your monthly home loan, as well as municipal rates, utilities, levies (if you're in a complex), home insurance and future property repairs and maintenance. Bond registration and property transfer costs also need to be budgeted for in advance. Why you should put extra money into your bond If you've budgeted correctly and there is still a bit of money left over at the end of each month, it makes a great deal of sense to put this into your bond. Simon, who we mentioned earlier, is already looking forward to paying off his bond sooner and saving a great deal on interest by employing this trick. But how much can realistically be saved? According to FNB, paying an additional R500 into your 20-year bond on a R1 million property, using the aforementioned example, will save you R335,000 in interest and shorten your loan period by three years. Whichever strategy you follow, it is important to approach your savings with a goals-based approach, says Nicola Langridge, wealth manager at Private Client Holdings. 'Starting a new exercise regime has always been hard for me when I am not clear on what the goal is. I am far more committed when I have entered a 21km race or booked a hiking trip that requires preparation and has a clear deadline. Saving for your financial future follows the same principle,' Langridge says. But life does not happen in a straight line, so regular reviews and adjustments are essential as circumstances evolve, she adds. IOL
IOL News
07-06-2025
- Business
- IOL News
Point of view: essential tips for the 2025 Sars tax filing season
Tax Prepare for the 2025 tax filing season with essential tips and insights from Sars. Learn how to avoid common mistakes, ensure timely submissions, and maximise your refunds. Image: Freepik Every year, tax season creeps up on us, and somehow, despite all our good intentions, many of us still scramble at the last minute. With Sars officially opening the 2025 tax filing season from July 7 to October 20, now is the time to get your affairs in order before the inevitable rush. There's good news for taxpayers—Sars has streamlined the process through auto assessments, meaning that a large group of non-provisional and provisional taxpayers will receive pre-completed tax returns based on third-party data from employers, medical aids, and pension funds. Those affected will be notified between July 7 and 20, and if the information is accurate, there's no further action needed. If corrections are necessary, changes can be submitted via eFiling before the October 20 deadline. For those not automatically assessed, tax returns must be submitted manually from July 21 onwards, which is where preparation is key. Sars advises taxpayers to check their banking details to avoid delays in receiving refunds, which can be paid within 72 hours if everything is in order. Now, let's talk about the common mistakes that cost taxpayers time and money. Procrastination is one of them, and I speak from experience. Six years ago, I ignored the deadline warnings and put off filing my return, convinced I had more time. When I finally sat down to do it, I realised there was missing documentation from my medical aid. Panic set in, and I had to chase paperwork in a mad rush. The result? A delayed refund and unnecessary stress. Lesson learned—file early, avoid the headache. Another mistake people make is not reviewing their auto assessment properly. While Sars does a great job pulling data from various sources, your tax situation may have changed—maybe you've started freelancing, received an unexpected income stream, or incurred deductible expenses. Not checking could mean losing out on a refund or unknowingly under-declaring, which could result in penalties. For those in the self-employed or provisional taxpayer category, the filing period extends until January 19, 2026, but that doesn't mean you should delay submitting your return. Filing early means avoiding system crashes, and last-minute errors, and dealing with customer service queues when everyone else is rushing in October. Sars has enhanced support services, including extended customer service hours, updated online platforms, and comprehensive guidance on eFiling. Taxpayers are strongly encouraged to avoid visiting branches, opting instead for digital channels like Sars MobiApp and eFiling to complete their returns. Rhoderic Nel, Sanlam Risk and Savings chief executive, recently pointed out a sobering truth—life-changing financial events can strike at any age. If you're under 35, filing taxes might not seem like a top priority, but missing deadlines or failing to claim rightful deductions could leave you paying more than necessary. So, here's my challenge to you: don't wait until the deadline looms to file your return. Take the time to review your tax situation now, check your documents, and ensure your banking details are correct. If you're lucky enough to receive a refund, it could hit your account within days—and who wouldn't want that? A little preparation now will save you hours of frustration later. Whether you're getting a refund or settling your dues, the key to a smooth tax season is simple: start early, file correctly, and avoid the panic. * Maleke is the editor of Personal Finance. PERSONAL FINANCE
IOL News
05-06-2025
- Health
- IOL News
Rising cancer claims highlight health challenges in South Africa
Sanlam's latest claims data reveals a worrying trend of rising cancer and cardiovascular claims in South Africa, highlighting the impact of lifestyle diseases and the ongoing effects of the Covid-19 pandemic on health screenings. Cancer remains a leading cause of severe illness claims, accounting for 54% of total payouts in this category- a 30% increase from 2023, according to Sanlam. According to the group, notably, prostate cancer claims among men have doubled, while breast cancer claims among women have risen by 33%. Cardiovascular conditions were responsible for 20% of death claims and 17% of disability claims. Sanlam says the sharp rise in cancer and cardiovascular claims points to shifting health challenges affecting South Africans today, with lifestyle diseases becoming increasingly prevalent. According to the group, conditions such as heart disease, certain cancers, musculoskeletal disorders, and mental health issues are contributing to a growing claims burden. Marion Morkel, chief medical officer at Sanlam underscores the knock-on effect of the pandemic, which resulted in delayed screenings and late-stage diagnoses. 'Cancer claims under the Severe Illness category rose by 30% year-on-year – prostate claims doubled in men, and breast cancer claims rose 33% in women. These increases, while concerning, are partly the result of the knock-on effect of the Covid-19 pandemic, with proactive screenings having been delayed for several years.' Sanlam says South Africa's hypertension rates remain among the highest globally, serving as an early warning sign for heart disease and stroke. Stroke and musculoskeletal disorders have risen sharply among women, including those under 50, reflecting a worrying trend. Morkel emphasises the importance of early detection, urging South Africans to take charge of their health metrics, including blood pressure, cholesterol, glucose, and BMI. 'Regular screenings and self-checks – especially for breast cancer – are essential. For heart health, know your numbers: blood pressure, cholesterol, glucose, and BMI. And once you reach your mid-40s to early 50s, make regular check-ups a priority.' This information is included in Sanlam's claims data which also reveals gender disparities in disability and income protection claims. 60% of disability claims were filed by men, while 61% of sickness income claims were filed by women—20% of whom claimed for pregnancy- and childbirth-related conditions. Severe illness claims were evenly split across genders, reinforcing the universal nature of health risks. The claims data shows that Sanlam Risk and Savings has paid out a staggering R6.62 billion in individual insurance claims in 2024, marking a 9.24% increase from the previous year. 'The World Health Organisation recommends that annual health screenings and checks start in our 30s, and we urge South Africans to prioritise these as part of their yearly routine," Morkel says. Sanlam's claims statistics for 2024 reveal record-high payouts, with R5.47 billion allocated to death and funeral claims, R501.6 million to disability, loss of income, and impairment claims, and R650.3 million to severe illness and injury claims. Over the past six years, the insurer has disbursed more than R36 billion in claims, making 2024 one of the highest payout years outside the Covid-19 peak in 2021. Rhoderic Nel, Sanlam Risk and Savings chief executive points to a troubling trend—more younger individuals filing claims. 'Currently about 24% of all living benefit claims are from clients younger than 35 years old, with increases being seen in income protection claims (up from 15% in 2022 to around 25% in 2024). It's a sobering reminder that life-changing illness can strike at any age. Being financially prepared isn't something to delay – it's something to start now.' Nel stresses that each claim represents more than just a policy number—it's a life, a family, and a future. 'Every claim we pay is a promise kept. Behind each one is more than a name or contract number, it's a family, a story, a future changed. That's why our claims philosophy is rooted in fairness and compassion. People need support quickly, so we're constantly striving to reduce the time it takes to settle claims," says Nel. As health and financial risks evolve, Sanlam's data highlights the importance of financial preparedness. 'This isn't just about payouts. It's about helping people stay on their feet when life takes an unexpected turn," says Nel. PERSONAL FINANCE
IOL News
05-06-2025
- Health
- IOL News
Rising cancer and heart disease cases drive R6. 62 Billion payout by one of South Africa's largest insurers
The latest data point to shifting health challenges facing South Africans today Image: Freepik Cancer, heart disease, and other lifestyle-related conditions contributed to a significant increase in insurance claims in 2024, with Sanlam Risk and Savings paying out R6.62 billion up 9.24% from the previous year. According to the company, the latest data 'point to shifting health challenges facing South Africans today – evidenced by increases in claims for illnesses like heart disease, certain cancers and musculoskeletal disorders, and mental health concerns.' Key 2024 claims statistics R5.47 billion in death and funeral claims R501.6 million in disability, loss of income, and impairment claims R650.3 million in severe illness and injury claims Over the past six years, Sanlam has paid out more than R36 billion in claims, with 2024 ranking among the highest annual totals second only to the Covid-19 peak in 2021. Cancer accounted for 54% of all severe illness claims, with the number of cancer-related claims rising 30% year-on-year. Prostate cancer claims in men doubled Breast cancer claims in women rose 33% Cardiovascular conditions made up 20% of death claims and 17% of disability claims. Sanlam paid out more than 99% of all death claims in 2024, with the highest single claim reaching R36.2 million Dr Marion Morkel, Sanlam's Chief Medical Officer, pointed out that lifestyle diseases are becoming a major driver of claims. 'The World Health Organisation recommends that annual health screenings and checks start in our 30s and we urge South Africans to prioritise these as part of their yearly routine," she said. 'Cancer claims under the severe Illness category rose by 30% year-on-year – prostate claims doubled in men and breast cancer claims rose 33% in women. These increases, while concerning, are partly the result of the knock-on effect of the Covid-19 pandemic with proactive screenings having been delayed for several years.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The data also showed a rise in stroke and musculoskeletal disorders among women, including women in the younger age groups (pre-50). Rhoderic Nel, Sanlam Risk and Savings Chief Executive said currently about 24% of all living benefit claims are from clients younger than 35 years old, with increases being seen in income protection claims. 'Currently about 24% of all living benefit claims are from clients younger than 35 years old, with increases being seen in income protection claims (up from 15% in 2022 to around 25% in 2024). It's a sobering reminder that life-changing illness can strike at any age. Being financially prepared isn't something to delay – it's something to start now.' IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
The Citizen
03-06-2025
- Business
- The Citizen
Sanlam pays out R6.62 billion in death and disease claims
Sanlam paid out 9.24% more than in 2023, with a sharp increase in cancer claims, while cardiovascular claims showed an uptick. Sanlam Risk and Savings has paid out R6.62 billion in 2024 for claims for deaths and diseases, with lifestyle-related conditions taking a growing toll. The statistics point to shifting health challenges facing South Africans today, evidenced by increases in claims for illnesses such as heart disease, certain cancers, musculoskeletal disorders and mental health concerns. Dr Marion Morkel, chief medical officer at Sanlam, says the increase in claims for diseases which have a good prognosis when detected early puts the spotlight on the importance of regular screenings and checks. 'The World Health Organisation recommends that annual health screenings and checks start in our thirties, and we urge South Africans to prioritise these as part of their yearly routine.' ALSO READ: Liberty pays out R600 million for two-pot retirement system in 2024 What the claims statistics show for deaths and diseases The claims statistics show that: R6.62 billion was paid across all claims, including R5.47 billion in death and funeral claims; R501.6 million in disability, loss of income and impairment claims and R650.3 million in severe illness and injury claims. Over the past six years, the group has paid out more than R36 billion in claims, with 2024 being one of the highest annual claim totals aside from the Covid-19 peak in 2021. Cancer accounted for 54% of all severe illness claims, up 30% in the number of cancer claims from 2023. Prostate cancer claims in men doubled, while breast cancer claims in women increased by 33%. Cardiovascular conditions made up 20% of death claims and 17% of disability claims. Sanlam paid more than 99% of all death claims. The highest claim was R36.2 million. Morkel says lifestyle diseases came through very strongly in the claims data, with cardiovascular disease and cancer the top two causes of death and disability. 'Cancer claims under the severe illness category increased by 30%, while prostate cancer claims doubled in men and breast cancer claims increased by 33% in women.' 'These increases, while concerning, are partly the result of the knock-on effect of the Covid-19 pandemic when proactive screenings were delayed for several years.' ALSO READ: How to ensure that your future life insurance claim is paid out Claims statistics also show increase in strokes among women She points out that this year's data also shows an increase in stroke and musculoskeletal disorders among women, including women in the younger age groups under the age of 50. 'While much of the data mirrors that of other countries, South Africa's high blood pressure rate is among the highest in the world, an early indicator of heart disease and stroke.' 'Regular screenings and self-checks, especially for breast cancer, are essential. For heart health, know your numbers: blood pressure, cholesterol, glucose and BMI. And once you reach your mid-40s to early 50s, make regular check-ups a priority.' The claims statistics also show: Disability claims skewed male, with 60% filed for men, compared to 40% for women. Sickness income claims had a higher representation of female clients (61% female vs 39% male), with 20% of total claims for women for being pregnancy and childbirth. Severe illness claims were relatively gender-balanced (52% female, 48% male), reinforcing the universal health risks across both genders. ALSO READ: Why trust is so important when it comes to life insurance Also many claims from younger people Rhoderic Nel, chief executive of Sanlam Risk and Savings, says currently about 24% of all living benefit claims are from clients younger than 35, with increases in income protection claims (up from 15% in 2022 to around 25% in 2024).' 'It is a sobering reminder that life-changing illness can strike at any age. Being financially prepared is not something to delay but something to start now.'
