Experts are warning employees in Eswatini not to rely solely on their pension schemes to fund their retirement. Emmanuel Zvada, managing consultant at Third Eye Africa in Zimbabwe, recently spoke at the Institute of People Management (IPM) Eswatini annual conference, emphasizing the importance of early retirement planning. According to Zvada, retirement planning should begin when an employee enters the workplace, rather than becoming a last-minute discussion when they are preparing to leave.
Zvada noted that retirement brings significant changes to an individual's life, including the loss of position, influence, benefits, and financial security. He urged employers to make retirement preparation part of the employee journey, just as they prioritize recruitment, onboarding, and development. This approach can help employees adjust to life without the routines, responsibilities, and recognition that come with employment.
The consequences of poor preparation may only become clear after an employee has left work, when it may be difficult to rebuild financial security. Zvada illustrated this with the example of a person who had worked faithfully for 30 years, received their benefits, and attended a farewell party, only to face financial pressure two years later after the money had run out. He stressed that a farewell party is not a retirement plan.
Zvada challenged employers to consider whether they had genuinely prepared employees for retirement or had simply processed their exit and celebrated their years of service. He encouraged HR practitioners to have early conversations with employees about retirement planning and provide relevant workplace support to help them approach retirement with a clearer idea of how they will manage the transition.
The Institute of People Management (IPM) Eswatini annual conference was held at the Happy Valley Hotel in Ezulwini. The event brought together HR practitioners and experts to discuss various topics related to employee management and development. Zvada's presentation highlighted the need for a more proactive approach to retirement planning in Eswatini.
According to Zvada, employees need to think ahead about how they will sustain themselves financially after their regular salaries stop. He emphasized that retirement planning cuts across ages and backgrounds, and the right time to start planning is now. By taking a proactive approach, employees can ensure a smoother transition into retirement and avoid financial difficulties.
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Key points
- Retirement planning should begin when an employee enters the workplace.
- Relying solely on pension schemes can leave employees struggling to maintain their lifestyle in retirement.
- Employers should make retirement preparation part of the employee journey.
