As we go through life, it's common to contemplate the impact we'll have when we're no longer around. "Legacy" typically brings to mind abstract concepts like values, principles, and reputation. However, it's crucial to also consider the financial aspect of our legacy. This includes passing on wealth, assets, and resources to future generations, ensuring that our loved ones can benefit from our financial security and dedication even after we've passed away.
Why Should You Consider Your Financial Legacy?
Leaving a financial legacy is about more than just passing on money or assets. It involves setting a strong foundation for the people and causes that are most important to us. Therefore, it's essential to carefully consider the potential effects of our decisions. A thoughtfully planned financial legacy can provide stability and security, while a poorly managed one can have disastrous outcomes.
Generally, here are several key reasons why you should consider your financial legacy:
Providing for your loved ones: Leaving a financial legacy ensures that your family and dependents have the means to maintain their standard of living and achieve their goals even after you are no longer there to support them, for example creating a comprehensive estate plan to ensure that your assets are distributed according to your wishes. Providing for your loved ones includes having a last will and testament and designating beneficiaries for insurance policies and retirement accounts. Also, proper planning can minimise taxes and ensure that your beneficiaries receive the maximum benefit from your estate.
Preserving family wealth: Building a financial legacy allows you to pass down family assets, businesses, or investments, thus preserving your family's wealth for future generations.
Supporting a cause or charity: A financial legacy can be directed towards philanthropic deeds, supporting charitable organisations or causes that align with your values. It allows you to leave a positive impact on society and continue to make a difference.
How Employers Can Support Employees in Building a Good Financial Legacy
Supporting employees in building a strong financial legacy enhances their well-being and your company's stability and reputation, regardless of job title or income bracket.
“Investing time, effort and financial resources into your workforce’s financial health is another way in which you as a business manager or owner and the company can leave a legacy that will stretch far beyond what you can imagine,” says Thian de Beer, CEO of Picsa.
He continues, “Investing in the financial health of your workers may change the lives of your workers and of their communities.”
In our previous blog, we highlighted the shocking statistic that South Africa has a shockingly low savings rate of 0.5%. This is a concern as many South Africans are not leaving a financial legacy for their families.
Picsa was established when the founding director began to look for practical solutions to the financial challenges faced by his low-income employees. As a company, we long to see the lives of low-income workers flourish. “This is the legacy that we wish to leave as a company,” says Thian.
What steps can you take to assist your employees in creating a strong financial legacy?
Firstly, offer them comprehensive employee benefits programs featuring retirement plans, insurance policies, and access to financial planning resources.
Secondly, organise workshops, seminars, or talks on financial literacy and legacy planning to provide them with financial education.
Lastly, cultivate a supportive workplace culture that encourages open conversations about financial goals, benefits, and long-term planning.
By taking these actions, you can help your employees build a stable financial future.
How does Picsa help low-income workers build a good financial legacy?
At Picsa, we understand the importance of leaving a lasting financial legacy for all individuals, regardless of income level. Picsa is a financial services provider that offers simplified wealth creation solutions designed to empower low-income workers in building a financial legacy. By partnering with us, your company can play a crucial role in improving the financial health of your employees, especially low-income workers.
Picsa's product offering includes a diverse range of investment options tailored to various needs, complemented by budget-friendly funeral plans, responsible lending solutions, and a distinctive loyalty program that rewards sound financial choices. These offerings have been developed to meet the specific needs of low-income workers, providing them with accessible and affordable financial tools.
Here’s how Picsa helps businesses support their low-income workers' financial health:
Financial education and planning: Picsa's practical financial education program is an integral part of its offering. By providing low-income workers with the knowledge and tools necessary to make informed financial decisions, Picsa empowers them to take control of their finances and build a solid financial legacy. This program covers topics such as budgeting, saving, and responsible borrowing.
Flexible retirement solutions: Our employer-matched savings program is tailor-made for low-income workers, ensuring that everyone can save for their future and leave a financial legacy.
One of the key benefits of Picsa's products is the opportunity for low-income workers to grow their wealth. With short- and long-term investments, employees can watch their money grow over time, allowing them to build a nest egg that can contribute to their financial legacy. Additionally, affordable funeral plans ensure that employees can secure their family's future financial stability in the face of unfortunate events.
Partnering with Picsa means that you can help your low-income workers build a financial legacy by providing access to our range of products and financial education to facilitate their growth and financial stability. This, in turn, leads to a more productive workforce, as financial worries are alleviated, resulting in improved job satisfaction and reduced stress levels.
Employers who partner with Picsa can go beyond traditional employee benefits, addressing the financial health of their workforce and fostering a productive and financially secure working environment.
Plan today, build for the future, and leave a lasting financial legacy.