Supporting Financial Wellness

Pig 1728

What is financial literacy?

Financial literacy is defined as the ability to make informed judgements and make effective decisions regarding the use and management of money. Read the Commission for Financial Capability article to learn more about New Zealand's National Strategy for Financial Literacy.

Why is this important for employers and employees? 

Employers are spending thousands of dollars every year providing life insurance and contributing to employee Kiwi Saver. However, at both the employer and employee level there is a significant knowledge gap that already has and will continue to negatively impact the very people these benefits and programmes are designed to protect and support.

This is because employee benefits of life insurance and Kiwi Saver are usually defined as an asset belonging to one specific person. If that person were to pass away without a legally valid Will, their assets are frozen until the Court decides who gets how much. The cost and time to access these funds is estimated to go up by 50% if there is no Will in place.

There is a common misconception that if your spouse/partner dies without a Will everything automatically goes to the surviving spouse/partner. It usually surprises people to learn that this isn’t necessarily the case, because New Zealand has a legislation dictating how much goes to whom. Learn more about that here.

Our solution

Footprint Connect enables funds, such as employee benefit life insurance and Kiwi Saver, to get to their intended recipients faster and easier. With Estate administration (EA) included in the package, your employees and their loved ones will not have to worry about dealing with legal jargon and process during a time when professional support can make all the difference. Learn more about what's included in the Footprint Connect package.

 To check out our latest infographic click here.