Life is becoming increasingly difficult for most of us. The increase in VAT to 15% and the increase in the fuel levy will make the situation worse. In light of all this, there are a few interventions that employers can take to ease the burden on their employees. Some of these are;
- Ensure that Group Risk plans are portable upon withdrawal – this will reduce the need for high independent life cover and would help ease the burden of high monthly expenditure
- In my experience as a financial advisor, I have found that many people forget to make provision for adequate funeral plans for extended family. With the high rate of unemployment in our country, many people end up being responsible for the burial of extended family members. They take personal loans to bury their loved ones. Group funeral plans for the nucleus family and extended family have become a necessity. Group funeral plans are also very cheap in comparison to individual funeral plans
- Assist your employees to save more and increase the savings culture within your organisation through a Group Tax-Free Investment account. This is a voluntary scheme and you only need a minimum of 5 employees to set it up and the minimum monthly contribution is R500. The employer would have to deduct the contribution from each employee salary account. The employees can access the funds when they need them e.g. in January when they want to pay school fees, to cash in on Black Friday purchases or for the university fees of their children, etc.
- If many of your employees have garnishee orders, you can get them audited because there are many garnishee orders that are legally invalid. Many government employees got relief when government audited the garnishee orders. It is about time all companies do the same
- Commit to giving your employees meaningful Financial Wellness programmes. The absence of personal finance education in our schools and universities is one of the major reasons why many South Africans are struggling financially. About a week ago, I assisted a young professional and saved him R12 500 in monthly credit repayments by restructuring his finances. He will now have an extra R12 500 to save and invest for his future. There are millions other people who are experiencing financial distress due to lack of financial knowhow. If you are signing up for FREE Financial Wellness, you are probably not getting much value out of it – there is nothing for mahhala
For any or all of the above, drop us an email firstname.lastname@example.org