Mental health cases are increasing by the day and one of the reasons is that so many of us are under financial stress.
We all know how our financial worries can keep us up and night and even affect our appetite and general ability to enjoy life. This is not something to take lightly – an expert says it can also affect your mental health.
“Financial insecurity is not only about depleted bank accounts. It chips away at psychological resilience. When people lack financial confidence, they carry an invisible burden that permeates every aspect of their wellbeing,” Dr Marion Borcherds, senior manager and head of well-being at AfroCentric, a Sanlam subsidiary.
Sanlam’s Age of Confidence campaign shows that most South Africans will need to work until the age of 80 to retire comfortably. Borcherds says that sobering projection alone creates heavy psychological strain.
Added to this, the 2025 Sanlam Benchmark report found that 44% of households have already dipped into emergency savings simply to make ends meet, a clear sign of how fragile financial and mental resilience have become.
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Financial worries and mental health disorders
A recent study confirms the link that financial resilience is associated with an approximately 37% decrease in the occurrence of mental health disorders. Importantly, the study also shows that this relationship is mediated by life satisfaction and household expenditure.
“Put simply, when people feel financially confident, they are more resilient mentally too. But when they feel financial stress coupled with the knowledge of being underprepared to retire, the strain shows up as persistent stress, which can manifest as anxiety, depression, sleep disruption, headaches and even weakened immunity.”
By 2050, 15.4% of the South African population will be over sixty. Borcherds warns that living longer does not always mean a better quality of life.
“Many pre-retirees worry about whether they will cope with rising healthcare costs, as aging often comes with chronic conditions. Medscheme reports that 13% of people under fifty face chronic conditions and a major concern is having adequate healthcare in retirement.
“Few employees feel prepared for retirement, which erodes confidence and resilience as people face the possibility of re-entering the workforce or downscaling drastically. Planning for a longer career brings its own set of problems. Burnout and fatigue are becoming more common as older employees, who once expected to retire and enjoy their savings, now find that the lifestyle they envisaged is out of reach.”
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Having to work after retirement adds to mental health problems
At a certain point in life, she points out, people have a natural desire to rest, relax and spend time with family, but for many, this is no longer possible due to financial circumstances. That loss of rest and choice can lead to depression and declining wellbeing.
Borcherds says retirement has also evolved into a transitional stage requiring new purpose through part-time work, volunteering, or creative pursuits. Many pre-retirees hope to finally take up hobbies they never had time for, but working longer delays these opportunities, leading to frustration and dissatisfaction.
Scaling down at a time when people expected to “live life large” has become the norm. Struggling to meet even basic commitments and being forced to work longer due to financial needs erodes a sense of control. That loss of control is strongly linked to poorer mental health outcomes, she warns.
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How the workplace can help
Borcherds say workplaces can help by recognising the factors that moderate these effects, such as:
- Socioeconomic status: Higher income and education are linked to better mental health, even when working longer.
- Job type: Physically demanding or high-stress jobs are more harmful to wellbeing.
- Voluntariness: Choosing to work longer is far less damaging than being forced to.
- Support systems: Access to mental health resources, flexible work and social support can soften the strain.
Kanyisa Mkize, CEO of Sanlam Corporate, says everyone must work together as leaders, employers, policymakers and partners and be willing to change, rethink and reimagine. Mkize proposes these practical solutions:
- Financial literacy and communication;
- Health and retirement integration;
- Rewards and incentives;
- Digital wellness tools.
“When people feel financially resilient, they are better equipped to handle life’s pressures. Without that confidence, financial worries silently undermine mental health,” Mkize says.
“That is why we cannot think of retirement planning as a purely financial issue. It is about mental health, dignity and purpose. As leaders, employers and partners, we must be willing to rethink how we support employees. If we tackle the confidence deficit directly, we can empower people not only to live longer, but to live with confidence and resilience.”
