Certainly one of the biggest challenges facing South Africa is our lack of a savings culture.
To counteract the possibility of having a huge amount of people applying for old age pension from the state, the government is planning to implement a National Social Security Plan (NSSP) (Sunday Times 11/02/2007). Whilst this may take several years to implement, the trend is definitely there for companies to set up their own fund.
Having a pension fund for your employees, possibly including life, disability and education cover, sends the right message to clients as well as current and future employees.
It shows clients that you are here to stay and have the right values in caring for your staff. Employees are less likely to switch from job to job, feel more appreciated and is willing to walk the extra mile for an employer who takes an interest in their wellbeing. It also ensures peace of mind to an employer knowing that should a staff member retire or pass away, their family will be well taken care of.