Financial wellness: An advantage for employers
In today’s fast-changing business landscape, forward-looking employers recognise that employee financial wellness goes far beyond personal finance: it is a cornerstone of sustainable business success. A workforce that feels financially secure is more productive, more engaged, and more likely to remain committed to the organisation that supports them.When it comes to preparing for life after work, many Namibians continue to face significant 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 rely on banked savings to prepare for retirement. While this may seem like a sensible strategy, it rarely results in long-term financial stability. The real value of savings decreases over time because bank interest rates often fall short of inflation. These savings also miss out on company contributions, tax benefits, and the potential for long-term compound growth, in contrast to retirement savings.
Guidance lacking
Access to advice is another challenge. Only one in ten employees outside a fund has access to financial guidance, compared with three in ten within a fund. Employees who are part of structured retirement plans are far more likely to receive professional financial advice. 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 transformative. A well-designed pension or provident fund represents a long-term partnership between company and employee, in addition to being a means of conserving wealth. Contributions are invested prudently in line with employees’ risk profiles and long-term objectives through professional fund management. Active oversight keeps investment strategies on track, while diversification across a range of asset classes provides a hedge against market volatility. Employers and employees can feel confident that their funds are being managed correctly when there is transparency and consistent reporting.
Insurance solutions
Beyond retirement planning, insurance solutions provide another vital layer of protection. Comprehensive group cover offers employees and their families peace of mind during crises, 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 in the workplace. Financial education initiatives, whether through workshops, mentoring or digital tools, help employees make informed decisions about their futures. Some employers also reinforce this culture by matching employee contributions, emphasising that saving is a shared responsibility and a mutual investment in long-term wellbeing.
Ultimately, financial wellness is a business strategy, not merely an HR activity. Financial stress, one of the most prevalent and damaging workplace distractions, lowers morale, focus, and productivity. Stronger performance, better retention, and a more positive workplace culture often result when employers take proactive steps to support their employees financially.
Businesses that invest in their employees today - helping them plan, protect, and thrive throughout their professional lives - will be the ones that prosper in the future.
* Patricia Olivier, is the managing director of Corporate Segment, Old Mutual Namibia.