As someone who has spent years as a financial journalist, editor and Managing Director for publications like Finweek, Fin24, and Moneyweb, I’ve had the privilege of exploring South Africa’s financial landscape from various angles. From dissecting market trends to interviewing financial experts, I’ve seen firsthand the challenges South Africans face when it comes to building wealth and achieving financial stability.
These insights have shaped my understanding of financial wellness, and now, as part of Decusatio, I’ve turned my focus toward empowering employees to build a brighter financial future.
One of the tools we’ve embraced to achieve this is the EasyEquities platform.
Empowering our staff through EasyEquities
As a business, we know there are certain issues we are trying to solve for:
- Research from South African asset manager 10X shows that only between 5 and 7% of workers can afford to retire.
- The changes in retirement savings / pension fund legislation (the so-called “two-pot” system) has seen more than 1 million South Africans withdraw nearly R40bn from their retirement savings. While this can provide short-term support, savers and retirees will lose out in the long-term.
- We want our staff to think of themselves as entrepreneurs and investors rather than employees.
- Salary increases are failing to keep up with inflation which means that unless you can secure above average increases, you need to find investments that can help you mitigate this challenge.
At Decusatio, we believe in empowering our team with the tools and knowledge they need to take control of their financial futures. EasyEquities has become a cornerstone of our financial wellness program, offering our employees an accessible, affordable, and user-friendly way to start investing.
When we onboard new staff, if they have not already setup an EasyEquities account, we then assist them in setting one up and make a first deposit on their behalf. We do this specifically to help them get over any “fear factor” and give them the opportunity to invest at zero risk.
Some of them enjoy the challenge of picking shares, others will look at unit trusts and Exchange Traded Funds (ETFs) and some have gravitated toward fractional ownership of property. Until you’ve taken that first step, it is very difficult to know what interests you.
With EasyEquities, we’ve found a platform that not only simplifies investing but also aligns perfectly with our mission to promote financial literacy and empowerment within the workplace.
What is EasyEquities?
EasyEquities is an online investment platform that makes investing simple and accessible for everyone. It allows users to invest in a variety of financial instruments, including shares, exchange-traded funds (ETFs), and unit trusts. The platform offers multiple account types tailored to different financial goals, such as:
- General Investment Accounts: Ideal for those looking to start investing without any specific restrictions, investors
- Tax-Free Savings Accounts (TFSAs): A tax-efficient way to invest up to R36,000 per year (as of current regulations).
- Retirement Annuities (RAs): Designed for long-term savings and securing a comfortable retirement.
One of the most significant advantages of EasyEquities is its accessibility. Users can start investing with as little as R10, breaking down traditional barriers to entry and making the world of investing approachable for everyone, regardless of income level.
The EasyEquities has put together a great education video here around how you can use the platform as part of your retirement planning:
Poor savings habits in South Africa and your business
South Africa is grappling with a savings crisis. Research shows that many South Africans struggle with poor savings habits, high levels of consumer debt, and limited financial literacy. According to the 2023 Old Mutual Savings and Investment Monitor, only a small percentage of South Africans are adequately prepared for financial emergencies or retirement. These challenges highlight the urgent need to cultivate an investment mindset within our society.
For businesses, the implications of poor financial habits among employees are profound. Financial stress has been linked to increased absenteeism, reduced productivity (known as presenteeism), and even workplace fraud. Employees distracted by financial woes are less engaged, less motivated, and less likely to contribute positively to the workplace environment. This is why we believe businesses have a critical role to play in fostering financial wellness among their teams.
Why financial education is a business imperative
Unfortunately, many businesses lack the capacity or resources to implement comprehensive financial education programs. This leaves employees to navigate complex financial decisions on their own, often leading to poor outcomes. At Decusatio, we’ve taken a proactive approach by integrating EasyEquities into our financial wellness initiatives. The platform’s simplicity and affordability make it an ideal tool for helping employees build an investment mindset without requiring extensive financial knowledge or large upfront commitments.
By introducing our team to EasyEquities, we’ve not only provided them with a practical way to start investing but also fostered a culture of financial responsibility and long-term thinking. Employees are encouraged to explore the platform, set up accounts, and begin their investment journeys at their own pace. The ability to invest small amounts—as little as R10—makes it accessible to everyone, regardless of their financial situation.
Building a culture of financial empowerment
The results have been encouraging. Employees who previously had little to no exposure to investing are now engaging with their finances in meaningful ways. They’re learning about the power of compound growth, the importance of diversification, and the value of setting long-term financial goals.
While we have had differing levels of success and adoption across team members, one of standout success stories was a staff member who had built up the equivalent of her first year starting salary through a combination of regular contributions, reinvestment of dividends and capital gains.
Conclusion: Innovation in financial wellness
EasyEquities has proven to be an innovative and impactful tool for promoting financial wellness within our team. Its accessibility, affordability, and ease of use make it an ideal solution for businesses looking to empower their employees with financial knowledge and opportunities.
By integrating this platform into our approach to human capital development, we’ve taken a meaningful step toward building a more financially secure and engaged workforce.
If you’re a business owner seeking to foster financial empowerment among your staff, EasyEquities might just be the solution you’ve been looking for.
If you would like to discuss a financial education solution for your staff, please do not hesitate to reach out to us.