Fewer than 6% of South Africans can afford to retire comfortably, according to the National Treasury. At the same time, a 2024 PwC study found that 70% of employees experience financial stress, with nearly half saying it directly affects their productivity.
The shift towards holistic employee wellbeing
When people are burnt out, anxious or disconnected, long term saving becomes an afterthought. Contributions shrink, engagement drops, and retirement readiness suffers. Globally, Gallup research shows that employee wellbeing – mental, physical and financial – is now one of the strongest predictors of performance, loyalty and long term resilience.
Engaging employees holistically
If we care about better pension outcomes (and by extension better societal outcomes), we can’t ignore the present. It’s no longer enough to manage funds. We need to holistically support employees during their careers. Traditionally, benefits were built around a stable career path, a predictable retirement age and a one-size-fits-all approach to saving. But that no longer holds true. For the modern employee, many of whom are also juggling side hustles, short term contracts and rising living costs, retirement feels abstract. Immediate needs have taken precedence, and the future is becoming something to fear or ignore. This is where benefit providers must evolve not just in what they offer, but how they engage.
People don’t engage with pensions through spreadsheets; they engage through life and small daily decisions. Do I pay off my credit card or top up my RA? Can I afford a therapy session this month, or should I skip it? These choices are emotional, not just rational, and that’s where a more holistic approach to benefits can move the needle.
The role of comprehensive benefits
Research from Momentum’s 2024 Financial Wellness Index reveals that only 30% of working South Africans stick to a monthly budget, and fewer than 1 in 5 feel confident about their long term financial plans. Globally, Gallup reports that employees with high overall wellbeing are 41% less likely to miss work, 27% more likely to report “excellent” performance and are more than twice as likely to stay with their employer. Financial stress, by contrast, is one of the strongest predictors of absenteeism and presenteeism.
When employee benefits support everyday wellbeing with mental health resources, financial tools and even personalised nudges, members are more likely to stay engaged with their future. They feel seen, supported and less overwhelmed. Employee benefits providers that understand this will find themselves leading the line as the world of work changes.
Embracing defined purpose and flexibility
We’re entering the age of defined purpose, where relevance, flexibility and meaning drives long term outcomes. Purpose creates participation. When members understand how their benefits fit into a bigger story, their health, their goals and their values, they show up. They contribute, they stay, and they’re more productive.
Whether it’s sustainability-linked investments, wellness-linked rewards, or just knowing their employer genuinely cares, people engage with benefits when those benefits engage with them. Technology is helping accelerate this shift. From AI-driven insights to gamified wellness journeys, we now have tools that can meet people where they are, not where we wish they’d be.
Building ecosystems for resilience
The providers that thrive in this next chapter won’t just be financial engineers. They’ll be human enablers building ecosystems that support resilience. That means reframing benefits as part of a member’s daily life and not just their retirement plan. Measuring success not only in fund growth, but also in wellbeing and engagement metrics and designing products built on trust and aligned with employee values.