While the details of Government’s retirement reform initiative have yet to be finalised, it appears that the debate around the issue is resulting in an increased focus among employers and employees on the need to save for retirement.
We are currently seeing an improvement in awareness among companies, of the importance of retirement savings and other employee benefits.
More companies are acknowledging that employee benefit programmes are a key tool to increase the savings rate of the working population.
Employee benefit programmes create the structured mechanism through which employees will save regularly for the future and thereby become more financially secure.
This renewed enthusiasm among local companies for providing employee benefits is being tempered by affordability issues in the wake of the global financial crisis and
concerns around the economic outlook in South Africa. As a result, it is crucial for employers to look at employee benefits in the context of what is ideal, but realise that they do not need to implement everything at once.
An ideal employee benefit programme could include a mixture of retirement
savings, group life insurance, medical aid, funeral and disability benefits, but the importance of these elements may vary from company to company and from employee to employee.
When structuring an employee benefits package, it’s important for companies to understand the core needs and priorities of their specific employees. For example, younger employees who don’t yet have families may not place much value on group life cover. They are also likely to feel that their salary, not their retirement savings, is their primary wealth generator. In these instances, employers need to have a strategy in place to communicate the benefits of long-term saving and investing.
While employers have a responsibility to ensure the long-term financial wellness of their employees, there are also self-serving reasons for companies to implement an effective employee benefits scheme.
Old Mutual research has shown a direct link between people who are members of retirement funds and higher levels of confidence in their financial planning. The simple act of putting an employee benefit programme in place has a positive impact on the workplace. Happy employees tend to be more productive and more incentivised to work for an employer when they know that the company has benefits in place for them and their dependants.
In addition to these advantages, well-structured employee benefits can help SMEs to avoid disaster in the event that one of their employees becomes disabled
or dies. Many SMEs insure their equipment but neglect to consider the financial consequences of a staff member becoming too ill to work or dying.
Ultimately, the savings benefit of an employee benefit programme is not only for retirement. Employee benefit programmes create long-term wealth and financial wellbeing for employees. The savings they generate can protect them from financial shocks such as job loss and create wealth that, importantly, can be passed on to future generations. It is crucial that South African employers get on board with this to address the savings crisis in the country.
10 Tips To Become A Millionaire This Year
Becoming a millionaire requires changing your mindset and implementing some changes.
Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.
Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.
If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30
Five common mistakes entrepreneurs make when starting a business and how to correct them.
Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.
So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.
From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.
Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.
5 Habits That Lead To Millionaire Business Success
You need the right habits if you’re going to succeed.
What do all millionaire businesspeople have in common? Well, a lot of things.
I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?
Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.
I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.
It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.
You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.
It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.
3. Ambition and big dreams
Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?
I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.
4. Learn from mistakes
Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?
Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”
5. Focus on niches
This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.
You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.
Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.
This article was originally posted here on Entrepreneur.com.
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