The situation does not look good for EmaSwati post-retirement, whether in formal employment or running businesses. The alarm has been sounded by Banomile Hlatshwayo, Business Development Manager at Old Mutual Eswatini.
Hlatshwayo, who spoke on behalf of OM Eswatini CEO Muzi Bell during their fourth leadership forum, themed ‘Clock out in Style,’ revealed that statistics indicate emaSwati are not retiring comfortably. “The data is alarming. Most emaSwati are depleting their retirement savings, meaning that the majority of them will not be able to afford the things they currently enjoy today.”
Hlatshwayo noted that, as OM Eswatini, they felt it was urgent and necessary to invite retirement funds to discuss this important issue. Notably, last year’s thought leadership forum also focused on retirement, with the financial services company emphasizing the importance of voluntary retirement contributions.
The experienced financial services practitioner also urged people in the workforce to scrutinize their financial statements and not be content with merely having a retirement benefit. She said that, as OM Eswatini, they are challenging all retirement funds in the country to urge their members to increase their contributions, as there is no minimum threshold. “Let’s move away from what we are currently investing and increase to at least 15% net contribution towards retirement,” she said.
Stephen Walker, Principal Consulting Actuary at Fairbairn Consult, which is under the OM Group, was one of the speakers during this year’s forum and concurred with Hlatshwayo. “We always advise the workforce to supplement their retirement savings. Research indicates that one can retire comfortably if they invest 15% of their net salary every month. We are aware that most people do not want to hear about voluntary savings, but that is the best way to ensure that one retires comfortably.”