On a Sunday afternoon, just before deadline, I sat down with the task of putting together an article for this publication. As is often the case, what began as a quick 30-minute search for article ideas and trending themes in the financial landscape quickly turned into a whirlwind of observations about the financial services sector, higher education and even artificial intelligence (AI). What I came away with were a few reflections that feel particularly relevant to our audience of financial services professionals, and also to my own area of influence: higher education.
The first reminder was just however helpful AI can be in scanning widely, reliably and precisely for inspiration. These tools are no longer novelties – they are reshaping the way we search, synthesise and communicate ideas. As academics, many of us have been historically rigid in our approaches, yet the world of work is already embracing these technologies at speed. Preparing students for this future means ensuring they can use AI critically and ethically.
The second surprise was a humorous one. The article that ultimately inspired this piece turned out to be authored by my next-door neighbour’s son, who, unbeknown to me, had been working as an academic researcher in Australia at the time. It is a small world, and sometimes a funny one.
The paper in question which struck a chord with me was Matthew Olckers’ (2021) “On Track for Retirement?”, which examined whether providing South African employees with a retirement income calculator would encourage higher retirement contributions. His findings were striking: despite being shown clear projections that most would fall short of maintaining their standard of living, employees barely adjusted their savings behaviour. Contributions increased by less than 0.2 percentage points – statistically indistinguishable from zero (Olckers, 2021).
In other words, even when the numbers are laid bare, knowledge alone is not enough to shift behaviour.
This resonated with me deeply. A few years back, I ran an informal exercise with colleagues in the financial services education space, estimating what percentage of income one would need to save monthly depending on age. Despite our expertise, many of us landed in the same general “bucket” of results as Olckers’ participants: underestimating what was required and defaulting towards minimums.
It led me, on that Sunday afternoon, to ask: is my passion for educating future financial services professionals – whether CFPs, CFAs, analysts, fund managers or wealth managers – a losing battle?
The answer, thankfully, was no.
Why do I remain optimistic? While it is true that behavioural biases, short-termism and optimism about investment returns often lead individuals to under-save (Olckers, 2021), I remain convinced that our industry provides a valuable, life-changing service. The work of educating and equipping professionals is far from futile; in fact, it is more important than ever.
Bodies such as the Institute of Bankers South Africa, the Financial Planning Institute of Southern Africa, the Association for Savings and Investment South Africa (ASISA) and the CFA Institute – together with higher education institutions like the Milpark School of Financial Services and our public universities – are diligently working to prepare professionals to advise individuals in ways that meet them where they are. The mission is clear: help clients make hard, wise, long-term decisions that will benefit them and their families in retirement, even when those years feel far away – until, suddenly, they are not.
For those reading this who are already in the sector or who aspire to join it, I hope this quick read offers a few pertinent reminders. First, that our work matters. Each retirement plan, each conversation about contributions, each financial literacy workshop is more than a transaction – it is a step towards dignity and security for individuals and the communities they support.
Second, AI is no longer a distant concept but a powerful tool that can help us research and collate coherent reflections of our draft thoughts and musings more efficiently – when deadlines loom. Used wisely, it can complement human judgement, rather than replace it.
And third, the world is indeed small. Your neighbour’s son may just be authoring a paper that shifts your Sunday afternoon thoughts.
Finally, as Olckers (2021) shows, financial knowledge on its own may not move the needle. But as financial services practitioners, educators and policymakers, we can – and must – continue to combine knowledge with behavioural insights and the kind of professional advice that translates information into action.
That is why, in spite of the frustrations, I remain both optimistic and motivated to keep contributing to the upskilling of our industry, and you too as financial services practitioners, reading this, should remain resolute too, to provide long term advice for the betterment of your clients.
- References: Olckers, M. (2021). On track for retirement?, UNSW Sydney. Retrieved from https://www.matthewolckers.com/, Researcher, Stellenbosch University
