Patricia Olivier
In today’s fast-changing business landscape, forward-looking employers are recognising that employee financial wellness goes far beyond personal finance: it’s a cornerstone of sustainable business success.
A workforce that feels financially secure is more productive, more engaged, and more likely to stay committed to the organisation that supports them.
When it comes to being ready for life after work, many Namibians continue to encounter major obstacles.
According to the Old Mutual Financial Services Monitor, 45% of working Namibians who are not part of a pension or provident fund through their employer are relying on banked savings to prepare for retirement. That can seem like a sensible strategy, but it rarely results in long-term financial stability.
The real value of savings decreases over time because bank interest rates could fall short of inflation. These savings also lose out on company contributions, tax breaks, and the potential for long-term, compound interest growth, in contrast to retirement savings.
There is also the issue of access to advice. Only one in 10 employees outside of a fund has access to financial advice, compared to three in 10 within a fund. Employees who are part of structured retirement plans are far more likely to receive professional financial guidance. This difference matters. When people understand how to manage and grow their money, they make better decisions, both for their families and for their employers.
Here, corporate retirement solutions have the potential to be revolutionary.
A well-designed pension or provident fund symbolises a long-term collaboration between company and employee in addition to being a means of conserving money. Contributions are invested sensibly and in accordance with employees’ risk profiles and long-term objectives thanks to professional fund management.
Active supervision keeps investment strategies on course, and diversification across a range of asset classes acts as a hedge against market swings. Employers and employees can feel secure knowing that their funds are being handled correctly when there are transparency and consistent reporting.
Beyond retirement planning, insurance solutions are another vital layer of protection. Comprehensive group cover can give employees and their families peace of mind in times of crisis, whether through life cover, disability benefits, or critical illness support.
These measures do more than protect against loss; they foster loyalty, resilience, and trust. When employees know their wellbeing is valued, it creates a ripple effect throughout the organisation.
Equally important is cultivating a culture of saving and financial awareness within the workplace.
Financial education initiatives, whether through workshops, mentoring, or digital tools, help employees make informed decisions about their futures. Some employers also enhance this culture by matching employee contributions, reinforcing the message that saving is a shared responsibility and a mutual investment in long-term well-being.
In the end, financial wellness is a business strategy rather than only an HR activity.
Financial stress, one of the most prevalent and detrimental workplace distractions, lowers morale, focus, and productivity. Stronger performance, better retention, and a more positive workplace culture are frequently the results of employers who take proactive measures to support their employees financially.
Businesses that invest in their employees now, assisting them in planning, safeguarding, and thriving throughout their professional life, will be the ones that prosper in the future.
*Patricia Olivier is the managing director of the corporate segment at Old Mutual Namibia.
