We recently celebrated Worker’s Day, an international holiday actually celebrated in many countries since 1891, but in South Africa, it has only been officially recognised and celebrated since the first democratic elections were held in 1994.
In South Africa, it reminds us of worker’s rights and the part trade unions and labour organisations played in the role of the abolition of Apartheid. Workers should be honoured as every working individual plays a role in the economy of the country.
From the basic labourer, in many ways the backbone of every country, to the Entrepreneurs and the corporate employees, we all contribute in some way to the fiscus, and it stands to reason therefore that the economy of the nation rests on the shoulders, not only of its Government but of its people.
Those who go through their working lives evading tax, drawing on every resource the state offers, spending all they earn and saving nothing for retirement, only to become a burden on the state at the end of their working life, are hardly contributors to the economy.
Ex UK Prime Minister David Cameron once said “The economy is the start and end of everything. You can’t have successful education reform or any other reform if you don’t have a strong economy.” So, to have a nation that works in every aspect, the economy is the foundation, and it takes a conscientious nation to build an economy. What can we as individuals at every level of earning (if one can be considered to be at a level of earning and not just surviving) do to make a worthwhile contribution?
As no man can live on bread alone, no country can survive without taxation income being generated. We all need to pay tax, but we can also ensure we are not being overtaxed. Those with wealth who are making good contributions need not be penalised and astute Wealth Advisors can assist with advice on how best to save for retirement and save on taxation at the same time. The government encourage savings like Retirement Annuities to relieve some of the financial burden of the state.
Given that some of the poorest people in the workforce, earning a few thousand Rand a month, can often save some money is a testament to the fact that if we have a budget and are prepared to make even small sacrifices, we all can make some savings contributions toward a better future. Savings, as aforementioned, can save on taxes and in the hands of a good Financial Advisor, yield far better returns than when they are just sitting in a bank account.
One of the worst things that can happen to the individual is to be incapable of working due to injury or some dread disease. When one is suddenly without income at all and without savings, or any form of insurance to cushion such events, it can be devastating.
Good medical aid cover, Dread disease cover and income protection are all designed to ensure that when the storm hits, as the pandemic has shown us, we can still keep our heads above water and not become a burden on the state – or anyone else.
Plan for retirement
One of the single largest burdens on the state is the distribution of pensions to the elderly, who have no retirement income. Anyone who has earned even reasonably good money should have made some retirement provisions, but incredibly thousands of people working for a company who have drawn early retirement funds have just spent them. Many business owners too, thinking the future will take care of itself, make no retirement provisions either.
Engage with an expert financial planner
As this so clearly illustrates, we all have an obligation to be a part of the growth of the economy of our nation. It also illustrates that the best way to achieve that, regardless of our level of income, is to engage the services of an astute Financial Advisor.
Hereford Group has, through our excellent team and wide range of services, been assessing the unique financial situations of individuals and businesses for over 25 years and offering solid solutions that enable them to live well and retire well, whilst making a real contribution to our economy.
Stay safe – and stay positive!