Being prepared for the unexpected.
Count on our advice.

If you are employed, does your company offer you benefits such as pension or provident funds, life insurance, funeral plans, medical aid and assistance programmes?  Then you have important savings and protection that are crucial for helping look after you and your family.

As an added benefit, you have access to all this at low fees set for institutions compared to taking them on as an individual.

We know the financial stresses many South Africans are under, whether the impact of the Covid pandemic has reduced their income, life changes have brought more expenses or their debt is increasing. The stress can be overwhelming. As you look to find ways to adjust your budget and expenses, you may be considering stopping, reducing or pausing some of the benefits your employer provides you. 

Doing so might give you a bit more in your take-home pay and help for a little while, but you may not be aware of how this can affect you later on.  Here are a few actions you may have considered, and the possible consequences you may not: 

You might be considering:
How this could affect you:
Withdrawing a portion of your retirement fund savings, or changing jobs just to have access to your retirement savings
Cancelling the life cover provided by your employer
Reducing your monthly retirement savings contributions
Changing your medical aid plan to a more basic one
This is the money you will rely on for a monthly income when you retire. Think about how much you will need to maintain your lifestyle when you retire, and how much you have saved.
If you dip into your retirement savings now, the difference in what you have in retirement reduces by so much more as your investment won’t achieve as much growth. 
Even taking a portion could mean the difference in thousands of rand when you retire. This could be the difference in being able to support yourself at all.
If this is the only cover you have that will help provide for your family when you are no longer around, how will they survive? If you become too sick or injured to work, how would you be able to support yourself?
Depending on your age, if you cancel a life policy and at some time later apply for a new one, you may find it costs more or there are exclusions you never had before.
A few hundred rand a month less now could mean thousands of rand less when you are ready to retire. Unless you are one of the very few South Africans who have planned to have enough to retire on, reducing your retirement savings will put you in a worse position. 
There is much to think about when doing this, your current health, chronic conditions, your lifestyle, family medical history and your risk factors... A short-term saving here could become a large cost should something unexpected happen to you or anyone else your medical aid covers. 
No matter your situation, it is always best to get advice from an experienced financial adviser. This is true whether you need to make decisions that help you out of a difficult financial situation or are planning for future goals.
At Alexander Forbes, we partner with your employer to help them not only provide the ideal benefits to you, their employees, but we also offer individual advice as part of our service to your employer... and good advice from Alexander Forbes is something you can count on.
More Reading on Employee Benefits
SOUTH AFRICANS HAVE A DISMAL TRACK RECORD OF SAVING. EMPLOYERS CAN HELP
The average South African is struggling to manage their finances The stats on the South African savings landscape are both shocking and saddening. Well before the Covid-19 pandemic and subsequent lockdowns brought many businesses... Read More
WHY YOUR EMPLOYEE BENEFITS ARE MORE CRUCIAL NOW THAN EVER
Financial stability in an unpredictable world Your employer may offer employee benefits (perhaps they refer to these as ‘group arrangements’). However, you may not realise exactly what these benefits are, or how essential they are to... Read More
HOW YOUR FINANCES ARE AFFECTING YOUR HEALTH
We tend to think of financial health and physical health as two separate things. When we need financial assistance, we call up our financial adviser or accountant. When we have a medical issue, we seek out our doctor. However, a rising body of... Read More
SOUTH AFRICANS HAVE A DISMAL TRACK RECORD OF SAVING. EMPLOYERS CAN HELP

The average South African is struggling to manage their finances The stats on the South African savings landscape are both shocking and saddening. Well before the Covid-19 pandemic and subsequent lockdowns brought many... Read More

WHY YOUR EMPLOYEE BENEFITS ARE MORE CRUCIAL NOW THAN EVER
Financial stability in an unpredictable world Your employer may offer employee benefits (perhaps they refer to these as ‘group arrangements’). However, you may not realise exactly what these benefits are, or how essential they are to... Read More
HOW YOUR FINANCES ARE AFFECTING YOUR HEALTH
We tend to think of financial health and physical health as two separate things. When we need financial assistance, we call up our financial adviser or accountant. When we have a medical issue, we seek out our doctor. However, a rising body of... Read More
THREE EMPLOYEE BENEFITS YOUR EMPLOYER MAY PROVIDE (AND WHICH YOU SHOULD REALLY USE)
Your benefits package from Alexander Forbes is not limited to the workplace, as it provides holistic financial and health support for you and your entire family. Typically, a benefits programme not only includes financial advice and services but... Read More
Being prepared for the unexpected.
Count on our advice.

If you are employed, does your company offer you benefits such as pension or provident funds, life insurance, funeral plans, medical aid and assistance programmes?  Then you have important savings and protection that are crucial for helping look after you and your family.

As an added benefit, you have access to all this at low fees set for institutions compared to taking them on as an individual.

We know the financial stresses many South Africans are under, whether the impact of the Covid pandemic has reduced their income, life changes have brought more expenses or their debt is increasing. The stress can be overwhelming. As you look to find ways to adjust your budget and expenses, you may be considering stopping, reducing or pausing some of the benefits your employer provides you. 

Doing so might give you a bit more in your take-home pay and help for a little while, but you may not be aware of how this can affect you later on.  Here are a few actions you may have considered, and the possible consequences you may not: 

You might be considering:
Withdrawing a portion of your retirement fund savings, or changing jobs just to have access to your retirement savings
How this could affect you:
This is the money you will rely on for a monthly income when you retire. Think about how much you will need to maintain your lifestyle when you retire, and how much you have saved.
 
If you dip into your retirement savings now, the difference in what you have in retirement reduces by so much more as your investment won’t achieve as much growth.
 
Even taking a portion could mean the difference in thousands of rand when you retire. This could be the difference in being able to support yourself at all.
Cancelling the life cover provided by your employer
If this is the only cover you have that will help provide for your family when you are no longer around, how will they survive? If you become too sick or injured to work, how would you be able to support yourself?
 
Depending on your age, if you cancel a life policy and at some time later apply for a new one, you may find it costs more or there are exclusions you never had before.
Reducing your monthly
retirement savings contributions
A few hundred rand a month less now could mean thousands of rand less when you are ready to retire. Unless you are one of the very few South Africans who have planned to have enough to retire on, reducing your retirement savings will put you in a worse position.
Changing your medical aid plan to a more basic one
There is much to think about when doing this, your current health, chronic conditions, your lifestyle, family medical history and your risk factors... A short-term saving here could become a large cost should something unexpected happen to you or anyone else your medical aid covers.
No matter your situation, it is always best to get advice from an experienced financial adviser. This is true whether you need to make decisions that help you out of a difficult financial situation or are planning for future goals.
At Alexander Forbes, we partner with your employer to help them not only provide the ideal benefits to you, their employees, but we also offer individual advice as part of our service to your employer... and good advice from Alexander Forbes is something you can count on.
More Reading on
Employee Benefits
SOUTH AFRICANS HAVE A DISMAL TRACK RECORD OF SAVING. EMPLOYERS CAN HELP
The average South African is struggling to manage their finances The stats on the South African savings landscape are both shocking and saddening. Well before the Covid-19 pandemic and subsequent lockdowns brought many businesses... Read More
WHY YOUR EMPLOYEE BENEFITS ARE MORE CRUCIAL NOW THAN EVER
Financial stability in an unpredictable world Your employer may offer employee benefits (perhaps they refer to these as ‘group arrangements’). However, you may not realise exactly what these benefits are, or how essential they are to... Read More
HOW YOUR FINANCES ARE AFFECTING YOUR HEALTH
We tend to think of financial health and physical health as two separate things. When we need financial assistance, we call up our financial adviser or accountant. When we have a medical issue, we seek out our doctor. However, a rising body of... Read More
SOUTH AFRICANS HAVE A DISMAL TRACK RECORD OF SAVING. EMPLOYERS CAN HELP

The average South African is struggling to manage their finances The stats on the South African savings landscape are both shocking and saddening. Well before the Covid-19 pandemic and subsequent lockdowns brought many... Read More

WHY YOUR EMPLOYEE BENEFITS ARE MORE CRUCIAL NOW THAN EVER
Financial stability in an unpredictable world Your employer may offer employee benefits (perhaps they refer to these as ‘group arrangements’). However, you may not realise exactly what these benefits are, or how essential they are to... Read More
HOW YOUR FINANCES ARE AFFECTING YOUR HEALTH
We tend to think of financial health and physical health as two separate things. When we need financial assistance, we call up our financial adviser or accountant. When we have a medical issue, we seek out our doctor. However, a rising body of... Read More
THREE EMPLOYEE BENEFITS YOUR EMPLOYER MAY PROVIDE (AND WHICH YOU SHOULD REALLY USE)
Your benefits package from Alexander Forbes is not limited to the workplace, as it provides holistic financial and health support for you and your entire family. Typically, a benefits programme not only includes financial advice and services but... Read More
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