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In terms of section 11F of the Income
Tax Act, these contributions can be
deducted from the employees’ income
for income tax purposes, subject to
certain limitations. This provides them
with a tax savings benefit. What is
important to determine is whether
the rules of the retirement fund
allow for individual adjustments – for
example, flexibility in contributions and
investment fund choice, or topping
a bit more settled. They are, however, The above illustrates how different up group life insurance benefits.
still striving to excel in their careers, generations typically have varied Then, ideally, with the support of
which means they too may change circumstances and why it is vital to a financial adviser, employees may
jobs often, making the preservation know which employee benefits will consider how this will address their
of benefits a critical consideration. suit the life stage of each generation. financial objectives and, should
The members of this group are also there be a shortfall, how broader
earning more, so they can contribute Your employee benefits plan should financial planning may resolve this.
more to their retirement funds. have a purpose that is clear to your
• Generation X (born between 1965 employees. The plan needs to reflect Most benefits offered will be calculated
and 1976) are more established in your company’s values and be as a multiple of your employees’ annual
their careers. This generation is more clearly communicated, explaining salaries. The premiums paid for these
focused on growing their wealth. not just the details of the plan, but benefits are a taxable fringe benefit
They may want to find out about the purpose and intent behind it. for the employee but may be treated
having more investment choices, as a tax deduction for the employer.
depending on their retirement fund hOW TO dETERMinE yOuR
rules. They likely have dependants, EMpLOyEE BEnEFiTS pLAn knOWing yOuR
so benefits such as healthcare and You can have various benefits as part EMpLOyEES
risk policies may also be a priority. of your employees’ conditions of Every business is unique. Whether your
• Baby Boomers (born between employment, including retirement goal is to attract top talent, provide
1946 and 1964) are at or nearing fund membership, healthcare benefits choices or manage costs,
retirement and will likely seek benefits benefits or group life insurance if you understand your employee
counselling. It must be noted that benefits. This also means that your demographics, you are a step closer
benefits counselling, which retirement employees’ remuneration packages to having a complete view of their
funds must provide, does not include may include certain contributions needs, and having a customised
financial advice and neither does it towards these benefits. business solution to meet your
consider broader financial planning company’s employee benefits plan.
needs. It is, therefore, imperative By way of example, depending on
to communicate the importance the employment contract, you and Reference:
of having an individual assessment your employees can both make *The Center for Generational Kinetics: https://
done by a financial adviser. contributions to a retirement fund. genhq.com/faq-info-about-generations/

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