Selwyn Jehoma

Q: What’s the definition of optimism? A: A financial planner ironing five shirts on a Sunday evening. It took me quite a long time to fully understand social security….Where did we first learn about social security …someone once said in school

Social Security »History

Most men became employees of firms – with social security coverage as from late 19 th century This grew significantly after 1 st and 2 nd World Wars Industrialization Impact

Social Security is money, goods, services policies that any modern and decent society makes available to its citizens in order to ensure they make ends meet. Social Assistance is a grant or an in-kind benefit paid for by the government from taxes Social Insurance is a grant paid for from savings into a fund by those who have work employed Private provision has grown in the absence of state provision or when state scales down

Parallel to social security, many Anglo- American countries developed employee benefits schemes: –Savings and risk pooling schemes existed as far back as the 1850 –South Africa’s employee benefit schemes date back to date back to 1890’s for occupational injuries –Unemployment, maternity and sickness benefits came later in the 20’s Proper social security lagged behind

Child benefits Disability or sickness benefits when work is interrupted Pension from state and/or contributions workers contribute: social insurance family benefits complete school

Where are we? Is this affordable? 5 million tax payers? Old age pension and Disability CSG growth GDP share of all grants- from 1.5% to 3.4% Partial coverage of pensions and others

Future trends in Child Support Grant

What should be done in SA? 10/6/2015Social Security and Retirement Reform IMC/IDTT 10 Middle and high income people Pillar 3 Improve Regulation Low and middle income Pillar 2: National Social Security Fund Oblige everyone to contribute towards: A national pension system, UIF, Accident and work injuries and diseases and health care Pillar 1: Social assistance for the poor

Implications 1.Not a threat but a diversification of risk 2.For current financial arrangement: –Provident funds will decline –Reduce financial flow 3.New challenges: –Depending on your place in the market, space for brokers will be reduced –Companies must innovate to compete for skills –Design new ways to become employer of choice

Implications 1.A new balance will have to be found in the best interest of all –having more income security for –A more inclusive society, –a reduction of poverty, –a reduction in equality, a more fair society, –a more certain future for all