The Financial Advice Model Of The Future

How employer-facilitated advice can boost employees’ financial wellbeing.

- Louis van der Merwe

The distribution of financial advice favours clients that have already accumulated assets and are approaching the de-cumulation or retirement phase. Less than 6% of the South African population benefits from receiving this form of financial advice.

The value of advice lies in both the technical elements and relationship elements. Technical value refers to factually correct and accurate plans as well as constructing and implementing various financial products in line with the plan. Relationship value refers to the confidence and trust that the client has in the adviser to assist them in achieving their objectives through ongoing support and coaching.

I want to propose a financial advice model that better suits clients in the accumulation phase of their working life. The highest value of financial advice in South Africa lies in the ability to assist working-age employees to better plan and manage their finances to support not only themselves but also their financial dependants.

Employer-facilitated advice

I’d like to introduce employer-facilitated advice that supports the technical and relationship elements of financial advice; thus, a marriage of retail and institutional advice.

Financial planning as a benefit offered by employer groups alongside retirement funds, group assurance, and medical aid to reduce financial stress, increases employee productivity, retention and ultimately attracts new talent.