Retirement Supported by Tomorrow’s Technology
Writer: Emily Jarvis
Project Manager: Callum Philp
According to Statistics South Africa, there are currently more than 4.15 million South Africans aged over 60 in the country, and with quality of life tipped to improve in line with the growing middle-class trend, more and more young people are turning to life-assurance companies to take out a pension.
As a 13B administrator operating in South Africa, M Cubed, also known as M3, is at the forefront of implementing employee benefit solutions to improve the retirement planning landscape, including the implementation of efficient, effective and relevant pensions and specialised retirement solutions. Through its innovative administration system, M Cubed is a prominent frontrunner in this niche – but growing – market segment of small to medium enterprises, exacting its proven ability to provide highly flexible, comprehensive and cost-effective benefits for the client.
Comprising several key business areas including M Cubed Employee Benefits, Risk Solutions, Asset Solutions, Payroll and its foray into the cleaning services industry via M Cubed Hygiene, the M Cubed Group is able to provide value-enhancing products by maintaining open communication and trust with its partners and members.
Given the rapid evolution of technology and the importance of its utilisation in the average business today, M Cubed’s administrative system allows clients to access an online services platform that provides customised financial solutions tailored to individual client needs. “We promote total independence through the quality, depth and diverse nature of our services. Our focus is to leave a legacy through our value-enhancing products by maintaining open communication and trust with our members,” says the Company.
As one of the market leaders in the employee benefit segment, M Cubed has proved that its solutions are a competitive and flexible solution that also meet the design and subsequent servicing needs of clients and consultants.
“Our commitment to qualitative service is achieved through excellent leadership, effective people and process management as well as a state-of-the-art administration platform,” the Company further explained.
Taking an annual review of the retirement industry in South Africa, Sanlam’s 2014 Benchmark Survey stated that only 29 percent of retirees who are members of a pension fund are able to maintain their standard of living when they retire. This number falls to 10 percent when all retirement age South Africans are considered; and with the growing number of dependents they must care for and the growing life expectancy, this portrays a challenging picture.
Various attempts to reform the South African pensions system have been explored over the past half a century. In 2012, the National Treasury published an overview of proposals entitled ‘Strengthening Retirement Savings’, which revealed some of the complexities involved if the country were the establish a national retirement fund, and after many years of review, employer contributions to retirement funds were introduced as a fringe benefit in the hands of employees for tax purposes.
Although this made the employee benefits environment somewhat more complex, M Cubed has been working to increase the number of SMEs choosing them to set up a retirement fund for its employees, so as to improve the future financial situation of employees and their dependents.
“Under the new reforms, individuals are able to receive a tax deduction on employer and employee contributions to a pension fund, provident fund or retirement annuity fund up to 27.5 percent of the greater of remuneration and taxable income,” highlighted the Company in its own report on the reform.
“We are certainly looking forward to another exciting and challenging year ahead in our M Cubed Employee Benefits subsidiary,” Mmapula Ikaneng, Principal Officer said in the M Cubed annual trustee report.
Strengthened by staff
In order to align itself with the reform, M Cubed is continuously adjusting its products and processes, bringing in state-of-the-art software coupled with a team of high-calibre employees capable of the job in hand.
By following its carefully refined processes and implementing the latest technologies to power its software, M Cubed can ensure accuracy, efficiency and effectiveness of its products. Recognising that its employees are one of the Group’s greatest strengths, M Cubed ensures its teams are kept motivated through various monthly performance-based incentives that address any shortcomings before they happen, and keep them on their toes.
The Company summarised on its website: “Above all, we strive to perfect our services for our growing customer base. This is just one element that sets us apart from the competition.”