Celebrate Worker’s Day this Month by offering Retirement Benefits.

The 1st of May marks Workers’ Day and is celebrated across the globe. In South Africa, Workers’ Day holds a unique cultural significance, as this public holiday has come to signify the sacrifices made on the long and difficult road towards fair employment standards and the struggle against the Apartheid regime, where both trade and labour unions played an essential role.

In honour of a day that celebrates labourers and workers, we would like to discuss why it is important for your employers to have a retirement fund for you. First and foremost, retirement plans are a valuable benefit that has a significant impact on employees' present and future lives. Over and above this, the importance of a retirement fund for employees becomes apparent when taking into consideration that:

  1. Without retirement provision, employees will only receive a very limited social pension benefit provided by the Government, and only IF they qualify.

  1. Left to their own devices, many employees may make insufficient or inadequate retirement provision for themselves.

  1. Employers can also benefit from providing a retirement fund for their employees. By providing a competitive and comprehensive range of staff benefits, employers can offer potential employees an incentive and help retain key staff members.

We, therefore, find that it is often better for employees to assist their staff in saving every month. Because offering retirement benefits can be daunting, the best approach is primarily to understand the advantages of offering retirement plan benefits for employees. Below are a few pros of having a retirement fund for employees:

  • Employers and employees can be assured of the provision of benefits on retirement or death.

  • The fund is a separate, legal entity from the employer and run by a Board of Trustees, with a registered and approved set of rules.

  • Tax concessions on contributions and benefit payments.

  • If the employer has a comprehensive range of benefits providing for death, retirement and disability, this will attract and retain staff.

  • Retirement funds can be designed for specific industries.

If the process of offering a retirement fund for employees sounds too complicated and time-consuming, fret not! We at PBA Financial Services can help employers procure benefit products and coverage from a wide range of insurance providers and tailor these employee benefits to each company's specific needs.

Contact a PBA financial advisor for further information on how we can connect you with the right employee benefits plan.

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