South Africa. One simple decision can cost you 41% of your retirement
On the back of the widely known statistic that over 90% of South Africans are not in a position to retire comfortably, FNB Employee Benefits has also noted a growing trend amongst SME employees not fully understanding or saving enough for retirement.
“Although up to 70% of our commercial banking employers currently don’t offer formal benefits to their staff members, the small and medium businesses that do offer these benefits are concerned at the low rate of retirement saving from their staff. Poor savings and over-indebtedness often result in several work-related challenges including poor performance and job hopping.
“On the positive side, employees who better manage their personal finances tend to be more satisfied, motivated, and productive,” said Elize Giese, FNB Employee Benefits CEO.
“As part of broader initiatives to improve South Africans’ savings habits, SMEs too have an important role to play: Employers should consider investing in improving money management amongst their employees as part of their employee benefits offering,” added Giese as she unpacks some of the reasons for employees’ lack of savings for retirement:
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