By Siphesihle Dlamini
In a bid to dispel retirement myths and encourage a culture of financial preparedness, Old Mutual recently hosted a Thought Leadership Forum at the Hilton Garden Inn Hotel.
The forum, held on Wednesday served as a platform for engaging discussions and insightful revelations on the importance of prudent financial planning and disciplined savings habits.
The event, which brought together Human Resources managers from various sectors, aimed to empower them with the tools and knowledge needed to ensure a brighter future for all emaSwati.
The event, held under the theme “The time to burn away retirement myths,” sought to educate attendees on the significance of saving for the future through retirement funds.
Every year, Old Mutual hosts an interactive leadership forum where experts share their experiences around retirement.
Addressing a captivated audience, Muzi Bell, the CEO of Old Mutual, emphasized the repercussions of prematurely accessing retirement funds while still in the workforce.
“People withdraw a third or even more of their retirement funds while still working. This act costs people later in life as they may misuse funds and suffer later,” he said.
He cautioned against the potential pitfalls of misusing such funds, urging individuals to prioritize financial literacy and strategic planning for their post-retirement years.
“We are here to empower you and equip you with the necessary knowledge to secure your financial future,” Bell remarked.
He encouraged participants to reflect on their long-term financial goals and share the insights gained from the forum with their colleagues in the workplace.
Nceba Phuphuma, Divisional Head & Principal Consultant, delved into the intricacies of retirement fund management, shedding light on how retirement savings can accrue value over time to benefit employees.
He underscored the pivotal role that Human Resources managers play in safeguarding the financial well-being of workers post-retirement.
Phuphuma elaborated on the innovative ‘Two-Pot’ Retirement System and broader reform initiatives aimed at fortifying retirement savings mechanisms in South Africa.
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By advocating for the forced preservation of retirement funds and aligning tax-deductibility of contributions, the system seeks to address the dual challenges of inadequate retirement savings and mounting debt among South Africans.
“Inflation poses a significant threat to retirement plans, and it is imperative for individuals to plan strategically to mitigate its impact,” Phuphuma emphasized.
In a bid to revolutionize retirement planning and foster a culture of financial preparedness among the emaSwati community, Old Mutual’s Head of Corporate, Banomile Hlatshwayo emphasized the critical importance of early retirement planning, highlighting the alarming trend of individuals failing to save adequately for their pension years.
Drawing on Old Mutual’s rich legacy spanning over 170 years, she underscored the pressing need for proactive financial planning to safeguard one’s future well-being.
“The forum serves as a pivotal initiative to equip emaSwati with the necessary skills and insights to secure a prosperous future,” Hlatjwayo remarked.
She lamented the lower statistics of retirement savings among the populace, stressing the need for individuals to aim for at least 70 per cent of their pre-retirement income to cover essential expenses during retirement.
Dispelling common myths surrounding retirement planning, Hlatshwayo addressed misconceptions such as “I have time,” “This responsibility lies with my employer,” and “My children will support me in old age.
” She urged attendees to confront these fallacies head-on and take proactive steps towards securing their financial futures.
“We cannot afford to delay planning for retirement. It is crucial to start early and make informed decisions to ensure financial stability in our later years,” Hlatjwayo emphasized.
By instilling a sense of urgency and responsibility in attendees, the forum aimed to catalyze a paradigm shift in how emaSwati approaches retirement planning.
Qhakazile Dlamini, People & Culture Business Partner, shed light on the Eswatini Experience regarding retirement readiness and the pivotal role that People & Culture champions play in preparing workers for their post-employment years.
Dlamini emphasized the importance of ensuring that individuals retire with dignity, underscoring the need for proactive engagement in retirement planning to enable a fulfilling and enjoyable retirement experience.
Addressing common concerns about the future, she tackled the question of “What if I don’t get to 60?” by advocating for a positive outlook on retirement that transcends age constraints.
“Individuals must have a positive perspective on their future to ensure a better quality of life after retirement,” Dlamini remarked.
By encouraging early engagement and education on retirement planning, she highlighted the transformative impact that informed decision-making can have on one’s financial well-being in later years.
Human Resources managers were urged to take a proactive stance in equipping employees with a comprehensive understanding of financial matters.
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Including the significance of money management, annuities, and how these factors contribute to a secure retirement.
Dlamini stressed the importance of integrating discussions on retirement planning from an employee’s first day in the office, rather than waiting until their 50s.
“People should be empowered with the knowledge and tools to make informed decisions about their financial future from the outset of their careers,” Dlamini added.
By fostering a culture of early engagement and education on retirement planning, organizations can empower their workforce to navigate the complexities of financial preparedness with confidence and foresight.