Financial Literacy – Financial Education Learning Platform

By Tokiso TKay Nthebe To help members of retirement funds to retire comfortably, pension and provident funds should prioritise retirement education. Part 1: Bridging the Knowledge Gap - Why Retirement Education Matters for Members of Public Pension Fund highlighted the challenges government employees face and discussed the negative impact lack of financial planning and retirement education has on member’s retirement outcomes. As a continuation, this blog provides strategies and ideas that pension funds can consider to drive retirement education and close the knowledge gap. Public pension funds often have complicated rules which can leave members confused or uninformed. As such, it is paramount for these funds to provide member education initiatives that can help members bridge the knowledge gap. These initiatives can be delivered in different formats for example, workshops, seminars or webinars, one-on-one consultations, digital resources, radio and television programs. A public pension fund that is making strides in terms of driving retirement education for its members is the Public Officers’ Defined Contribution Pension Fund (PODCPF) in Lesotho. Established by Public Officers Defined Contribution Pension Act No.8 of 2008, the Fund has an active membership of 37 507 and assets under management (AUM) of LSL12.2billion, making it the biggest pension fund in the country. How is the Fund prioritising retirement education for its members? The Fund held its inaugural Annual Member Engagement Forum (AMEF) in November 2023, a significant milestone in its 15-year history. The event’s theme “Your welfare is important to us”, underscored the Fund’s commitment to putting its members at the centre of everything, promoting transparency and accountability. The milestone also signified the Fund’s commitment to educating its members on its mandate, governance, performance and fostering a culture of open and honest communication. I had the privilege of attending the Fund’s second AMEF held on the 8th of November 2024 in Maseru Lesotho and below are some of the highlights on how the Fund is actively engaging and education its members. Financial literacy initiatives: The Fund partnered with Lesotho Institute of Public Administration and Management (LIPAM) to provide financial literacy programs to help members throughout their employment journey and ensure that they are better equipped to make informed financial decisions and plan for retirement. Retirement readiness education: The Fund is proactively driving education on retirement annuity options and law amendments for the first cohort of members who joined the Fund at its inception in 2008. Multimedia engagement: The Fund continues to leverage traditional communication channels such as radio, television and print media to engage members across the country. With smartphone penetration high in the country, as part of its communication strategy, the Fund is aggressively using social media platforms such as LinkedIn, Facebook and WhatsApp to engage members and provide updates. Digital Tools and Resources: The Fund also recently revamped its website to provide members access to content, forms and performance reports. Another highlight is the online portal that gives members access to register and access the member portal. As aforementioned, I am of an opinion that the retirement industry has for many years taken member education for granted, only prioritising it when members exited the fund. When members are engaged and educated timeously, they are empowered to own their retirement planning and make the required changes to retire comfortably. This also gives them confidence and security about their financial future. In conclusion, if the industry is to bridge the knowledge gap, transform and improve member’s retirement outcomes, retirement education should not be a tick-box exercise but a deliberate and ongoing program where members are encouraged to prioritise their knowledge about finances, money management and retirement. This must be a joined effort by all industry players! It is essential to challenge and discourage government employees from relying solely on perceived job security, which can sometimes lead to complacency and uninformed financial decisions. Encouraging a proactive approach to personal finance management will not only foster responsible decision-making but also enhance financial well-being. Let’s empower our members with knowledge, so that can achieve the best retirement outcomes. Tokiso TKay Nthebe is an author, podcast host, financial coach and advisor at TKO Financial Wellness & Advisory who is passionate about financial wellness, education and financial planning. For more visit www.tkofinancialwellness.com or email info@tkofinancialwellness.co.ls