One in five Ghanaians are prioritising retirement as a savings goal, according to the Old Mutual 2023 Financial Services Monitor (OMFSM). Only 20% hold a pension or provident fund through their employer, and a mere 7% have a retirement annuity. Overall, just 37% of Ghanaians have started saving for retirement. Confidence in retirement provision is low, with a rating of only 5.8 out of 10.
Ensuring financial security and independence in later years is crucial for your employees’ future well-being and peace of mind. It reduces the risk of poverty and dependence on others, such as family or government support, which may not be reliable.
As life expectancy increases and economic conditions fluctuate, having a robust retirement fund allows people to maintain their standard of living, cover medical expenses, and enjoy a comfortable lifestyle after leaving the workforce.
Plus, starting to save early leverages the power of compound interest, resulting in a significantly larger nest egg. Alleviating financial stress about the future can also improve overall well-being and peace of mind.
Here are five ways you can help your employees:
Financial education programmes
Organise regular workshops and seminars to educate employees about financial planning, the importance of saving for retirement, and managing personal finances. These sessions can help employees make more informed decisions and understand the benefits of long-term savings. By enhancing their financial literacy, you can help employees to become better equipped to plan for their future, reduce debt, and optimise their financial wellbeing
Employer-sponsored retirement plans
Introduce or boost retirement savings plans such as pension or provident funds. Offering matching contributions incentivises employees to participate, as it grows their savings with additional funds from their employer
Clear information about the benefits and options available encourages greater enrolment and participation rates, especially among low-income workers. Access to a workplace retirement plan significantly boosts savings rates. A financially stable workforce benefits both employees and employers.
Access to financial advisers and flexible savings options
Facilitate access to financial advisers who can provide personalised financial planning and advice. This service helps employees navigate their financial options, make better savings and investment decisions, and tailor their financial strategies to their unique circumstances. In addition, offer flexible savings options that allow employees to contribute small amounts regularly, whether daily, weekly, or monthly. This will enable your organisation to accommodate employees with irregular incomes and makes it easier for them to start and maintain a consistent savings habit
Health and wellness programmes
Incorporate financial wellness components into broader health and wellness programmes. Initiatives such as free annual health checkups and financial wellness newsletters can address employees' overall wellbeing and stress reduction. By supporting both physical and financial health, employers can build a more productive, satisfied workforce.
Financial wellness programmes can also alleviate stress related to financial insecurity that, in turn, can improve mental and physical health.
Awareness campaigns and incentives for savings
Regularly communicate the importance of financial wellness through internal channels. Share success stories, provide updates on financial benefits, and maintain an open dialogue about financial health. Continuous communication helps keep financial wellness top-of-mind for employees, encouraging them to take advantage of available resources and benefits. Providing incentives for employees to save, such as bonuses or rewards for reaching certain savings milestones. These can be specifically tied to retirement savings goals to encourage long-term financial planning