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Own your life’ through financial ownership

05 October 2009 Liberty

According to the Savings Institute of South Africa, South Africa has a poor savings culture, given that most South Africans will retire with a pension of less than 30% of their final pay cheque. Before you assume this is a ‘poor person’s’ problem, think again.

The 2008 Finscope research findings released in January 2009, show that only 14% of consumers earning above R14, 000 a month know how to draw up and manage a budget. Only 12% insure their lives and only 7% know how to manage a loan. As much as 54.7% worry they will not have enough savings to retire.

This is alarming and demonstrative of the low levels of financial literacy even amongst South Africa’s middle class. The question we have to ask is what’s preventing people from saving for retirement and insuring their lives and their lifestyles?

Recent consumer research conducted by wealth manager Liberty shows that in today’s fast paced world people feel out of control of their lives. Although they have a deep need for progression, most people feel as though life happens to them instead of the other way around. This is particularly true when it comes to their finances. They feel enormously frustrated and disempowered due to a lack of knowledge, lack of trust, lack of clarity and a perceived lack of value in what is provided to them. Although people recognize the need for financial planning, the barriers to entry are simply too great.

The research explains that people want to understand the choices available to them, they want full and transparent information, presented clearly and free of jargon, and they demand the flexibility to adapt financial solutions to their changing life needs and external circumstances; and they want it all from a strong financial partner that they know they can trust.

Above all else, people want to feel empowered to make their own decisions, particularly when it comes to their financial well-being. Ultimately, they want to feel in control of their lives.

Liberty has responded to their clients’ needs by targeting the perceived barriers to financial planning. According to Bobby Malabie, CE of Marketing and Distribution at Liberty, “To help us talk to our customers in a way that is more meaningful to them and on their terms, we have implemented a number initiatives - such as simplifying our policy documents by making them easier to read and understand - with no jargon or legalese,”

Liberty has also expanded the use of hi-tech communication channels, and provides a personalised online portal for new policies – making it more convenient and faster to use for clients.

“By providing our clients with the right tools, knowledge and understanding, we hope to empower them to not only take control of their finances but live the life that they want to – free of debt and with enough cover to protect their loved ones should anything happen to them. The consequences of clients cancelling their life cover to pay off debt could be dire,” says Malabie.

Liberty has adopted the term “Own Your Life” to represent its commitment to deliver what its customers want, and the brand promise and experience that those customers should expect in dealing with Liberty and its representatives.

“Our success must be inextricably linked to our clients’. ‘Own Your Life’ expresses our commitment to empowering our customers to take ownership of their financial future - and in doing that, they take control of their lives.”

Quick Polls

QUESTION

South Africa went to Davos to pitch itself as an investor-friendly destination, then signed an Expropriation Act. What message does this send to global investors?

ANSWER

Invest at your peril
SA is open for business
Two steps forward, one land grab back
Welcome to Hotel California
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