JOHANNESBURG – To mark World Savings Day on October 31, Alexander Forbes has identified a novel approach to emergency savings where employers help their employees with short- and long-term financial needs.
Michael Prinsloo, Managing Executive: Research & Product Development at Alexander Forbes said the idea behind the emergency savings approach, touted in 2018 Benefits Barometer, an Alexander Forbes research publication focusing on the financial services industry, was to help corporates leverage the power of compulsory long-term savings to help employees who find themselves in financial emergencies.
“This offers employees a sense of immediate value, as they can experience the benefits of their savings throughout their lives,” Prinsloo said. “The solution could be employer-driven, member-driven, a stokvel-type model or a combination of these.
Employers have a key role to play in the overall well-being of their employees, which bring benefits to the employees and employers. Employers can demonstrate this via an employer-driven solution.”
Prinsloo gave the example of Company A, which decided to use retirement savings to provide an emergency savings plan for its employees.