31 Jan 2017

Retrenchment makes any victim lose hope suddenly and wonder where their next meal will come from, let alone how they will keep their children in school or do this and that as they have been accustomed to.

Many among the working class dream of a premeditated retirement filled with holidays, enjoyment of pension savings and investments.

But being retrenched tilts the scales, turning one’s world upside down and is unavoidably felt as a devastating blow below the belt, which affects not only the salary earner but also the dependents and their wider circle of family and friends.

According to online report by the Investors Group (www.prnewswire.com), a poll indicated more than a third of pre-retirees (36%) said they were worried that at their current pace of saving and investing, they would not be able to live the retirement lifestyle they pictured for themselves and their loved ones.

The poll further stated that it was critical that those who were forced into an earlier-than-anticipated retirement, such as retrenchment, adjust their financial plans to match the diminished number of employed years they had initially intended to ensure that they did not run through their income too quickly.

Apart from the feelings of despair, guilt and humiliation of breadwinners often engulfing the retrenched, they could no longer afford medical aid schemes, keep their children in private schools, afford the normality they once afforded and lead the lives they wanted.

Speaking in an interview, head of claims at Pearson Hardman Insurance, Mr Bakang Tshwenyane said when people were retrenched, they had to report to the insurance company their current situation.

He said they would be given a maximum of six months or less to look for a new job to maintain the insurance policies they had to service every month.

Mr Tshwenyane said the six months does not happen automatically because if the individual does not report their status, the policy will lapse in three months and they will only get back some of the money on savings and retirement policies but get nothing for funeral policies.

He advised Batswana that in order to attain financial security, they must invest in different insurance companies and banks.

Furthermore, he suggested that Batswana invest in small businesses because they can help them get through tough times and attain financial stability.

He further commended Batswana, noting most of Batswana who are retired or retrenched venture into farming, which is a sure bet because livestock rearing always brings income.

With the country faced with sweeping retrenchments in various sectors of the economy, those affected would be wise to consider their predicaments as that is not the end of it all. BOPA