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:
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
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:
| 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. |
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. |
| 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. |
Employee Benefits
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
