Financial Wellbeing Programme

FWP

Financial empowerment through financial education and support

Financial Wellbeing ProgrammeFWP

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Financial empowerment through financial education and supportThe only constant in life is change. This simple fact makes it extremely important for employees and fund members to be able to make informed decisions

regarding their finances and futures as they move through life, or are faced with changing circumstances.

As an employer or a board of trustees that cares for your employees or fund members and wants the best for them, you want to make sure they have

access to the financial information and knowledge they require to put the right plans in place to meet their financial, retirement or career needs at every

stage of their lives. But how do you achieve this in a way that doesn’t place undue pressure on your human resources, or business finances?

What is the Old Mutual Financial Wellbeing Programme?The Old Mutual Financial Wellbeing Programme (FWP) is a unique and highly effective education and support programme that enables you, as an

employer, HR practitioner, or trustee, to provide your employees or retirement fund members with the financial education and support they need to

make the most of their finances and ensure the success of their financial planning efforts.

FWP is offered in partnership with you as an employer or retirement fund trustee, and is an easy and cost-effective way of making financial education,

decision support and advice available to your employees or fund members. The programme uses a combination of financial health assessments,

educational workshops, decision support services and accredited financial advice, to deliver a customised and holistic financial wellbeing solution.

Not only is FWP an excellent way of demonstrating your commitment to the financial wellbeing of your employees or fund members, but by making this

top-quality education, assistance and advice available to them at key stages of their lives, you will be making a tangible contribution to their lives, and

to the future of the country as a whole.

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Transforming South Africa’s financial landscape through educationIndependent research has shown that South Africans simply do not save enough. A fact confirmed by the annual Old Mutual Savings Monitor

survey, which consistently highlights the concerning non-savings culture in our country, as well as high over-indebtedness and low financial literacy

levels.

The results of the annual Old Mutual Retirement Monitor have confirmed these issues within the retirement savings realm, and serve to highlight

the importance of financial education in helping South Africans ensure their financial security.

As a key player in the economic transformation of South Africa, Old Mutual is committed to investing in the financial future of its people and

partnering with like-minded individuals and organisations to help ensure a financially literate society. By working together in this way, we can

ensure that all South Africans have the knowledge and information they need to make the best possible decisions regarding their lives, and futures.

The Old Mutual Financial Wellbeing Programme is one of the key ways in which we are working towards achieving this vision.

Financial Wellbeing ProgrammeFWP

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The many benefits of FWP In addition to being a cost-effective way of facilitating the future financial success of employees or fund members, FWP offers a number of

compelling benefits.

Employees or Members Trustees Employers

■ Empowered - through just-in-time

education and decision support - to

make informed financial decisions.

■ Sound financial advice and support

during key life stages - enabling good

decisions about finances and the future.

■ Increased understanding of their

current fund benefits, enabling

members to plan holistically for their

financial future.

■ Improved behaviour relating to

personal money management.

■ Improved delivery on fiduciary duty to

act in the best interests of members.

■ Effective education to change the belief

that membership of a retirement fund

automatically ensures a comfortable

retirement.

■ Lack of bias by not endorsing a single

service provider for financial planning

and financial products.

■ Continued independence but enhanced

co-operation with employers to help

them meet HR objectives.

■ Proactive leadership that inspires

confidence in governance and

performance of duties.

■ Improved delivery on HR strategies.

■ Higher productivity levels thanks to

improved loyalty and less personal

financial stress amongst employees.

■ Cost-effective education to empower

employees to make informed financial

decisions.

■ Flexible programmes to meet the needs

of diverse workforces, irrespective of

language, income level or geographical

spread.

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What FWP offersWhile FWP is designed to offer a comprehensive and holistic solution including financial education, financial assessment, and decision support and advice,

the various programme components and modules can also be offered independently, or combined in any way, to create a solution that best suits the needs

of your employees or fund members.

FWP comprises the following key components

On the Money ObjectiveTo share vital principles of money management and, thereby, encourage improvement

of standard of living, hope and optimism for the future, and the creation of a savings

culture through a positive change in financial behaviour.

ApproachThe SAQA-accredited On the Money workshop is based on extended analogies around

the animal behaviours of South Africa’s Big 5. The ‘secrets of the Big 5’ theme imparts

basic lessons that assist in improving financial behaviour and management. The ‘Big

5’ secrets covered in the workshop are:

■ The secret of the Lion: Save first, save fast

■ The secret of the Leopard: If you can’t dream it, you can’t do it

■ The secret of the Elephant: Easy budgeting, regular budgeting

■ The secret of the Rhino: Charging down your debt

■ The secret of the Buffalo: Protecting and investing your wealth

FWP

Financial Wellbeing ProgrammeFWP

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FIN360°Objective FIN360° is a holistic financial education programme that empowers management,

professionals and retirement fund members to make informed choices towards a

successful financial future.

Approach FIN360° comprises a number of practical learning modules, based on the pillars of

financial planning.

All FIN360° modules are presented by experts on the subject matter and have been

developed to encourage engagement on pertinent financial issues while providing

valuable insight and in-depth education. To achieve this, the modules do not focus

on specific funds or financial products, but cover broad financial principles to promote

informed financial decisions. The modules include:

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Member Support Services (MSS)Objective To partner with you as an employer or trustee to assist members with financial decision making through all life events during employment, including

joining the company, resignation, retrenchment, retirement, death, disability and divorce.

ApproachThe MSS offering includes:

Financial health assessmentObjectiveTo help fund members gain a clear understanding of their current financial situation

and enable them to develop the most appropriate plans to move forward.

ApproachThe assessment tools on offer (e.g. replacement ratio statements) provide a

snapshot of financial adequacy at a point in time and can be tailored to the needs

of the individual, the organisation or the retirement fund.

Ongoing member educationObjectiveEmpowering members to make appropriate financial decisions in the future through

a systematic and ongoing process designed to improve financial understanding.

OutcomeAn understanding of the retirement fund benefits and members’ current financial

readiness for retirement; knowledge of member level investment choice options

(where applicable); the ability to use a retirement benefit calculator; and sufficient

fund education to enable informed decision making.

FulfillmentAdministration

MSS

J.I.T. DecisionSupport Material

MemberEducation

ReplacementRatio

Statement

Accessto Advice

+Self Managed

Options

Financial Wellbeing ProgrammeFWP

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Just-In-Time decision support information ObjectiveTo make relevant information available on the various financial planning options during any life event (e.g. joining the fund, resigning, retrenchment,

death, disability or retirement).

ApproachThis information can be made available to members either by Old Mutual (via outbound calls based on agreed scripts) or by the employer’s Human

Resources Department:

■ On joining the retirement fund: members need to know what options (e.g. investment and other benefit choices) are available;

■ On resignation, retrenchment, divorce and redundancy: all these events necessitate withdrawals from the fund – e.g. the importance of

preservation needs to be highlighted;

■ In the event of permanent disability or death: members/dependants can benefit from expert guidance on key considerations and the options

available to them;

■ Prior to and at retirement: members can be informed of the financial options available to them at retirement, customised to their specific retirement

fund, highlighting the pros and cons of each option and setting out different methods for making a final decision.

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Access to personal advice, fund select, or self-managed optionsObjectiveTo offer members various methods of addressing their financial needs during all life events, depending on their personal preference and circumstances.

Approach

Personal advice Fund select Self-managed

“Architect” Adviser Trustees Self

Suitable for AllInvestors who do not wish to engage in a personal financial

advice process

ONLY the financially astute and knowledgeable investor

Fit to needs Personal best fit Generic best fit Personal best fit

Advice fees Yes No No

Benefits Personalised financial plan No advice fees payableAutomatic investment continuity

No advice fees payableSelf determination

Ease of administration ObjectiveTo make it easy for members to implement their financial choices when leaving their retirement fund.

ApproachEmploy a range of techniques to streamline the member’s paperwork such as:

■ Telephonic authorisation and completion of exit documentation.

■ Present “Fund Select” choices as tick box options on the retirement fund exit form.

■ Pre-populating forms with member details (requires early notification of intended member exit).

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Individual adviceObjectiveOld Mutual’s primary objective is for individuals to have full access to financial advice at key stages of their lives, so that they are adequately prepared for

retirement and have all their individual financial needs provided for. Even the most advanced investment professionals recognise the value of a financial

adviser who can help them make critical decisions.

ApproachTrained, licensed and accredited Old Mutual Financial Advisers, backed by Old Mutual, follow a thorough financial planning process involving gathering and

analysing all necessary information, compiling a written financial plan, and undertaking regular monitoring and review. These advisers can be accredited

on the benefits of the relevant company retirement funds (subject to employer and trustee approval) and conform to an agreed code of conduct.

The financial services and solutions on offer, include:

■ Estate planning and fiduciary services (including wills, estates, trusts)

■ Retirement and “at retirement” planning (including tax planning)

■ Individual risk profile analysis

■ Product choice

■ Death and disability protection

■ Short-term insurance

■ Corporate business assurance

■ Domestic and offshore investments

■ Tax analysis

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Implementing FWPOld Mutual offers FWP with the intention that it forms part of a fund or company’s overall member communications policy or human resources strategy.

All elements of FWP are tailored to the income level, financial literacy level, language preference and geographical spread of attendees.

Implementation of FWP essentially represents a partnership between your organisation or fund and Old Mutual. As such, the content and duration of

workshops, use of facilitator, venue, extent of advice offered, etc. are all subject to the joint approval of all parties involved. Old Mutual recommends the

signing of a Memorandum of Understanding and the appointment of a joint steering committee to direct the implementation and roll out of FWP.

A number of specific policies govern Old Mutual’s implementation of FWP for your members or employees. These include the following:

■ All FWP services and workshops are positioned to make it clear to attendees that, while their employer or fund has partnered with Old Mutual to

offer FWP, this does not constitute the fund or employer’s endorsement of Old Mutual as a preferred provider of financial planning or of financial

products.

■ It is made clear to attendees that any Old Mutual product purchase emanating from an individual financial plan is entirely at the purchaser’s

discretion.

Since much of FWP is offered free of charge, this programme constitutes a significant investment by Old Mutual. In order to make this investment

worthwhile, Old Mutual requires that the fund or company agree that:

■ Attendees be permitted to complete a feedback form, which includes a section for their contact details, should they require further individual

financial advice.

■ Old Mutual’s service centre number and/or adviser contact number is made available to attendees should they wish to contact Old Mutual directly.

■ All costs of venues, coffees, teas or lunches are not for Old Mutual’s account.

Financial Wellbeing ProgrammeFWP

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REGULATORY INFORMATION: Old Mutual Corporate is a segment of Old Mutual Life Assurance Company (South Africa) Limited, a Licensed Financial Services Provider, situated at Mutualpark, Jan Smuts

Drive, Pinelands 7405, South Africa. Company registration no:1999/004643/06.

The information contained in this document is provided as general information and does not constitute advice or an offer by Old Mutual. Every effort has been made to ensure the provision of information

meets the statutory and regulatory requirements.

However, should you become aware of any breach of such statutory and regulatory requirements, please address the matter in writing to: The Compliance Officer, Corporate Compliance Department,

Old Mutual Corporate , PO Box 66, Cape Town 8000, South Africa.

Find out more about FWPTo get more information about the Old Mutual Financial Wellbeing Programme, or discuss ways in which you can partner with Old Mutual in offering this

valuable programme to your employees or fund members, please call 011 217 1211 or visit http://www.oldmutual.co.za/fwp