EVENT | Transforming retirement: leading the charge in bridging expectation gaps

In SA, the gap between retirement expectations and reality poses a substantial challenge, worsened by global uncertainties.

According to 2023 Old Mutual Corporate research, only 56% of recent retirees can support themselves and make ends meet, compared to 72% of pre-retirees who expect to do so. Furthermore, 88% of South Africans face some level of indebtedness, with 44% of pre-retirees expecting to be debt-free by retirement but only 34% of recent retirees have achieved this.

These statistics highlight the challenges many South Africans face in achieving a comfortable retirement and the crucial role employers play in bridging this gap.

Employers are key in providing robust retirement plans and financial education to their workforce. To assist them in doing so, Old Mutual Corporate is hosting the Old Mutual Thought Leaders Forum on August 13 in Johannesburg.

This exclusive event will bring together industry leaders, policymakers and stakeholders from diverse backgrounds to discuss and develop strategies for enhancing the financial wellbeing of South Africans.

“As a business, we recognise that retirement provision is a significant challenge for SA [and one that must be addressed],” says Prabashini Moodley, MD of Old Mutual Corporate.

“Inadequate retirement savings and planning have far-reaching consequences for individuals and society. When a large portion of the population is unprepared for retirement, it strains families, communities and public resources, leading to increased poverty rates among the elderly and financial stress within households.

“The impacts of this issue span generations, affecting the socioeconomic wellbeing of our country. Moreover, the inability to secure comfortable retirements for our workforce affects overall productivity and morale within businesses. Employees who are stressed about their financial future are less likely to be engaged and productive at work. This, in turn, affects the business environment and economic growth.”

The Old Mutual Thought Leaders Forum aims to provide a platform for attendees to engage in meaningful discussions and share their knowledge and solutions. The forum will address the pressing issues within SA's social provision system, focusing on improving retirement outcomes.

It will delve into several critical topics, including:

1. Best pension practices from leading countries: Examining what employers, regulators, employees and service providers in countries with the best retirement outcomes do differently.
2. The future of work: Discussing the relevance of the retirement industry in the evolving landscape of work and identifying future trends.
3. Collective Defined Contribution (CDC) plans: Exploring whether CDC models could deliver better retirement outcomes compared to conventional Defined Contribution schemes.
4. SA's priorities: Identifying key priorities for the country to address the perennial problem of inadequate retirement savings.

“The Old Mutual Thought Leaders Forum will engage in both philosophical and practical discussions on the future of work, employee benefits and retirement funding,” says Moodley.

“For C-suite executives and decision-makers, these conversations are essential as they provide insights into how to adapt and innovate their business models in a changing landscape.

“Participation is crucial because it allows leaders to learn from global best practices, share ideas and collaborate on solutions that can drive sustainable improvements in retirement outcomes.”

The forum boasts an impressive line-up of international speakers including:

• Colin Haines, EMEA CCO at AON Wealth Solutions Business Group, who will explore innovative retirement solutions;
• David Knox, a pension expert and senior partner at Mercer Australia, who will provide global insights into best practices for retirement outcomes; and
• Samad Masood, associate vp at Infosys Knowledge Institute UK, who will discuss the future of work and its implications for the retirement industry.

Additionally, the event will feature prominent South African industry leaders and experts such as:

• Chris Axelson, head of Tax and Financial Sector Policy at National Treasury;
• Fatima Vawda, founder and CEO of 27Four;
• Jan Mahlangu, Cosatu Retirement Fund Coordinator;
• John Anderson, executive: Solutions & Enablement at Alexforbes;
• Olano Makhubela, divisional executive at the Financial Sector Conduct Authority;
• Roze Phillips, founder and CEO of Abundance At Work; and
• Thembi Mazibuko, chief people officer at Pick n Pay.

Alongside Moodley, several representatives from Old Mutual will also play a role in the discussions. They include:

• Nhlanhla Nene, chairperson of Old Mutual SuperFund;
• Thandeka Zondi, deputy chairperson of Old Mutual SuperFund;
• Blessing Utete, managing executive of Old Mutual Corporate Consultants;
• Celiwe Ross, director: Group Strategy, Sustainability, People and Public Affairs;
• Fred van der Vyver, head of Corporate Savings and Income
• Humphrey Mkwebu, GM of Employee Benefits;
• Iain Williamson, CEO and executive director of Old Mutual Group;
• Khaya Gobodo, MD of Old Mutual Investments; and
• Lindiwe Sebesho, MD of Remchannel.

The Old Mutual Thought Leaders Forum is particularly timely as the industry and the nation prepare for the implementation of the Two-Pot Retirement System on September 1.

This new system aims to provide financial flexibility while ensuring long-term savings. Employers play a pivotal role in preparing their workforce for these changes by learning from the experiences of other countries that have explored early access. This understanding is vital for effectively communicating these changes to employees and ensuring a smooth transition.

 “By bringing together diverse voices and expertise, we aim to develop innovative and sustainable solutions that will ensure a secure and dignified retirement for all South Africans. It is essential that we adapt our strategies to meet the unique needs of our population, particularly in these uncertain times,” says Moodley.

For more information about the event, visit the Old Mutual website.

This article was sponsored by Old Mutual.