Financial Literacy, The Vaccine for Employee Wellness in a Post-Covid World

Tuesday 07 December 2021: 10am – 12pm

Content Focus Area: EAP-PROFESSIONAL: Professional skills and information for EAP

Moremadi Mabule

Company Name: Sanlam

Degree or Highest Qualification: Bachelor of Arts specializing in Law Bachelor of Law (LLB) Diploma in Human Resources and Business Management

Speaker Job Title: Head of Wills

Biographical information related to the topic:

Moremadi Mabule is the Head of Wills operations at Sanlam Trust. She holds an LLB and BA Law degrees. She has 14 years’ experience in Will Drafting and Estate Planning. In her 14 years of fiduciary exposure she has worked for FNB, Standard Bank and Nedbank where she has been exposed to clients from all walks of life. She has worked as legal advisor and a skills facilitator. She has appeared in several media publications as a thought leader in fiduciary, particularly in Will and Estate planning.

Abstract (Wills):

Sanlam Trust is Sanlam’s  fiduciary business.  Our services include  drafting, reviewing and safekeeping of Wills, administration of solvent deceased estates,  drafting of trust deeds, acting as trustees of trusts, as well as managing  funds for minors through the Sanlam Trust Beneficiary Fund.

If the covid pandemic has taught us one thing – it is  that you can never plan too much, or too far  ahead. The reality  of our mortality has never been so prevalent than not, yet   there are still  people who don’t believe in having a will – even some celebrities have  passed on without a will, leaving their huge estates In a total mess and living minor and vulnerable beneficiaries in an admin nightmare.

The presentation will deal with the importance of having a will, and the impact of not having one (dying intestate). The emotional burden on family having to deal with  the administrative  hassles around finalizing the deceased estate when someone dies intestate  is huge.  A clearly worded and valid will , ensuring that  you as the testator has the final say of who gets what and when, is the basis of leaving a successful legacy.  We will be  sharing case studies and examples.

A will is not only for the rich or the old –everyone should have one to ensure that you protect your legacy both  in life, and in death. In life  you should use an expert to draft your will as part of a  holistic financial  plan, and to also plan ahead to minimise  fees and estate duty when you are no longer there – securing an optimal inheritance for your beneficiaries.    We will share some numbers in the presentation.

The presentation will also deal with relevant statistics  around the covid pandemic and changes in behavior.  Many families were caught unawares with a loved one dying without having their affairs in order. Minor children were left without parents and nominated guardians. We will also deal with  the various  marital regimes  and why  it’s important to have a will drafted  by an expert and to review it regularly to  align with changing life  circumstances such as divorce, death, remarriage and reconstructed families. – How  disputing a will can tear families apart and drain the bank balance.

Learning Objectives:

1. The attendees will understands the requirements of a valid will.
2. The attendees will be able to explain different types of marital regimes applicable in South Africa and some of the other countries.
3. The attendees will be more informed about the risk of dying intestate. (without a will)

Abstract (Risk):

The Covid-19 pandemic has exposed the lack of financial preparedness of many employees not only in South Africa, but across the world. The lower income segments mostly bore the brunt of this black swan event. The impact thereof will be felt for years to come.

Employees and their families as result will have to adjust their lifestyles and make do with less. Simple short- and long-term financial goals are now more difficult, if not impossible to achieve as employee cashflow is put under pressure by the rising costs of basic day-to-day needs.

All however is not lost, employees now have the opportunity to press the reset button from a financial planning perspective to prepare for the future by taking ownership of their financial situation and actively manage their current financial situation in order to achieve their revised goals and financial freedom.

Financial freedom however starts with financial literacy. As Donald Rumsfeld (previous US Secretary of State of Defense) said almost twenty years ago: “There are things we know that we know. There are known unknowns. That is to say there are things that we now know we don’t know. But there are also unknown unknowns. There are things we do not know we don’t know.” Partnering with experienced financial planning resources will not only help employees uncover their known unknowns but also their unknown unknowns. This would go a long way in helping them future proof their financial plans.

Financial planning is not only about death benefits, it is also about living benefits. The absence of these benefits could cause financial hardship when life happens. The antidote to financial hardship is financial literacy. Proper financial planning cannot mitigate everything, it can however help to mitigate most of the challenges that life expectedly and unexpectedly throws at us.

Learning Objectives:

1. Understand employee risk needs and the solutions that satisfy these needs
2. Understand the impact and associated cost of cognitive impairment on living benefits
3. Demonstrate how proper financial planning could possibly improve cash flow