Retirement funds’ topmost purpose and intention is to ensure that their members’ needs are met during retirement.
This is akin to summiting Mount Everest, the world’s highest and toughest peak. Given the ever-changing nature of the workforce, fund consultants must find innovate ways to offer fund members suitable advice to help them reach their retirement objectives. This advice must be adaptable to the needs of the evolving behaviours, trends and decision-making habits of the various generations that make up the current workforce.
According to research we conducted in our Group, millennials currently make up 52% of the workforce. Over time, this number will grow. Generation Z is also entering the South African work environment and expected to make up 24% of the workforce by 2020. When we look at the benefits offered to fund members, we need to apply this generational filter to understand the different dynamics that exist within each generation.
Our research has shown that today’s employees’ life stages are unique and not as linear as before. As an industry, we need to immerse ourselves in these ever-evolving client journeys to understand how different generations view retirement, death and disability.
Few South African employers have adapted to the millennial-dominated landscape, with many still offering the same benefits to employees today, as they did five years ago. In order to get to the top, climbers of Mount Everest must find innovative ways to steer clear of crevices and avalanches that might disrupt their journey to the summit. In the same way, funds need to find progressive ways to deal with the evolution of technology and the shifted mindsets that are shaping the future of employee benefits.