Sanlam : Benchmark Research

As affordability makes medical aid potentially unreachable for many, employers have a pivotal role to play in making integrated wellness solutions accessible to their teams to address the dual killers of productivity: absenteeism and presenteeism. Sanlam Benchmark research revealed 53% of respondents believe that a holistic integrated health and financial wellness programme delivers higher productivity and staff happiness. At the same time, an overwhelming majority of employees (93%) view wellbeing as important as their salary, and 87% would consider leaving a company that does not focus on wellbeing.

Corporate health solutions may also go some way to addressing the country's quadruple burden of disease and growing healthcare inflationary expenditure, which impacts everyone. With the question of NHI in the background, what's the best way forward right now?

In 2022, Sanlam Benchmark research found just 31% of respondents said they'd access funds from their Two-pot savings component; in 2024, this jumped to 59%. Two-pot may address the problems of the present, but, in a nation where under 10% of the population can afford to retire comfortably, what will the ramifications be later? What alternatives can we give people now to empower them to preserve their retirement savings while alleviating some of their current cash crunch?

Research indicates that rising financial pressures on consumers have led 50% of respondents to cash in all their retirement funds. This marks a regression from the 35% who did so in 2023. These findings underscore the importance of the Two-pot system, which aims to encourage and maintain savings throughout an individual's career. However, well-intended regulatory changes can have dire consequences down the line depending on execution. Clear communication, meticulous planning and implementation is needed to ensure that policies achieve their goals without unintended negative consequences.

Mkhize adds, "As the financial services sector, we need to find more ways to preserve the wealth of our retirement fund members, pre- and post-retirement. Sanlam's north star is to empower Africans to be financially confident, secure, and prosperous. Our sustainability strategy is deeply entwined in this mission, with the aim to contribute towards the seven Sustainable Development Goals. Importantly, we want to change people's stories and help them build long-term prosperity for their future selves and their families."

For more information and to attend the 2024 Sanlam Benchmark Survey findings reveal, visit our website.