March is more than another month on the calendar. For employers and employees alike, it serves as a natural checkpoint to revisit two critical pillars of financial wellbeing: group risk benefits and retirement funding. Both are typically established with the best intentions, yet too often left untouched as the world — and the workforce — continues to evolve.
We have officially settled into the new year. The urgency of January has faded, February has flown by, and by March most businesses are hitting their straps. At the same time, the financial year has just ended, making this a rare and valuable moment — not just to look back, but to reset with intention.
Group Risk Benefits: Fit for Purpose or Simply Familiar?
Group risk benefits are designed to protect employees and their families against life’s uncertainties. Yet many benefit structures were implemented years ago, for a workforce that looks very different from today’s reality.
Modern workforces are shaped by:
• Multiple generations working side by side
• Changing family and dependency structures
• Greater awareness of mental health and lifestyle-related risks
• Increased employee mobility and flexible working arrangements
Against this backdrop, it is worth asking whether existing benefits remain appropriate — and just as importantly, whether they are understood.
Many employees are unclear about:
• What their life and disability cover actually provides
• How income protection works in practice
• Whether benefit levels are sufficient for their current financial responsibilities
In a digital‑first environment, ongoing education and online engagement are essential. Clear, accessible communication empowers employees to make informed decisions and appreciate the real value of their benefits.
A benefit that is not understood is a benefit that is undervalued — regardless of how well it is designed.
Retirement Funding: A New Tax Year, A Stark Reality
With the new tax year underway, retirement funding deserves renewed attention — and the data makes the case impossible to ignore.
South Africans can deduct up to 27.5% of taxable income, capped at R430 000 per year, for contributions to retirement funds. This remains one of the most effective tools available to build long‑term wealth in a tax‑efficient manner.
Yet despite this incentive, retirement readiness remains deeply concerning. Recent industry research suggests that only around 6% of South Africans are on track to retire comfortably.
At the same time, we are witnessing a significant behavioural shift following the introduction of the two‑pot retirement system. Many South Africans have already accessed — or are considering accessing — their retirement savings to cope with immediate financial pressures.
Short‑Term Pressure vs Long‑Term Consequences
This reality cannot be ignored. The cost of living in South Africa continues to rise: food, fuel, electricity, medical expenses and education costs all place increasing strain on household budgets. For many, accessing retirement savings feels less like a choice and more like a necessity.
While the two‑pot system provides much‑needed flexibility, it also introduces a critical trade‑off.
Every rand withdrawn today is a rand that loses decades of potential compound growth. And this is where an often‑overlooked truth becomes important.
There is a long‑standing belief that “a small extra contribution doesn’t really make a difference”. In reality, the opposite is true.
Even small, consistent increases — whether through additional voluntary contributions, annual increases aligned with salary growth, or using a portion of bonuses — can meaningfully change retirement outcomes over time. Compounding rewards discipline, not just large amounts.
In an environment where many are drawing from retirement savings to survive the present, replacing those withdrawals — even gradually — becomes more important than ever.
Contributions Matter — But Investment Strategy Matters Just As Much
While contribution levels are critical, they are only part of the retirement equation.
Too many members remain invested in default portfolios without ever asking:
1. Does this portfolio align with my retirement timeframe?
2. Is the level of risk appropriate for my objectives?
3. Do I understand the investment philosophy behind it?
Default investment strategies play a decisive role in long‑term outcomes. Alignment between investment strategy, personal objectives, and risk tolerance is essential — particularly in volatile and uncertain markets.
The real question is not only whether you are saving enough, but whether your savings are positioned appropriately to deliver the outcome you expect.
A Timely Reset
March offers a powerful opportunity to step back and ask the right questions.
- Are your group risk benefits still relevant and understood?
• Are you making full use of the tax advantages available to you?
• Does your retirement strategy balance today’s pressures with tomorrow’s needs?
Whether you are an employer reviewing benefit structures or an individual reassessing your financial plan, small, informed adjustments made now can have a lasting impact on future financial security.
The year may already be underway — but the opportunity to strengthen your financial foundations is very much alive.