This year we had to assist several clients who were retrenched. In SA today, this is unfortunately a reality. Officially South Africa’s unemployment rate came in at 27.7 percent in the third quarter of 2017, the same as in the previous two quarters and remaining the highest rate in 13 years. The number of unemployed rose by 33 thousand to 6.21 million and the number of employed advanced by 92 thousand to 16.19 million, Unofficially, there’s talks about unemployment being closer to 40% of the South African population.
So how can you protect yourself and your family?
1) The key is to start planning now, while you are still employed.
2) The aim should be to have 6 month’s salaries saved as a nest egg. Even if you think you are 100% secure in your position, it is good to save about 10% of your monthly salary towards this nest egg. Consider the investment builder product:
3) The retrenchment protector benefit will protect you against the risk of being retrenched and losing income as a result. The benefit allows you to cover up to 75% of your after-tax insurable monthly income (capped at R30 000 per month) for up to 6 months per period of retrenchment. (See below):
Get in touch with us today to assure you are covered in the event of retrenchment and disability.
Until next time, take care.