As someone deeply immersed in the world of retirement planning, I've seen firsthand how retirement is not just a financial event but a deeply personal and psychological journey. Retirement in South Africa, with its unique socio-economic challenges and...
Estate Planning should be and is a crucial step in every individual financial planning process, that should be placed very high on one's priority list. In many societies, where we experience strong familial ties and bonds, with a deep desire to improve the...
As a financial planner, I've noticed that people often think of employee benefits and personal finance as separate. However, as you'll see in the examples below, the two are not only related, but are in fact parts of a bigger picture. By taking a step back...
Due to under-saving, most working South Africans are unable to keep up with their basic needs if and when they retire. This so-called “retirement gap” can be calculated at any point in an individual's lifetime to determine whether they are on track to...
When it comes to retirement planning, selecting the right annuity policy is crucial. One option available to pensioners is the default living annuity policy, which is managed by a third party and does not grant the pensioner independent control over their...
Umbrella funds have been growing in popularity over the last couple of years and are especially valued by employers who prefer a lighter touch approach to their employee benefit arrangements. There will always be a place for large, credible free standing...
Many boards of trustees of standalone funds face a decision on whether or not to move into an umbrella fund. There are many possible reasons to make such a move including: Lower expenses Reduced responsibilities Reduced liability Reduced time and...
In my September 2020 article on umbrella funds a number of shortcomings in umbrella funds were highlighted. Has anything changed? My last article for Pensions World SA on umbrella funds highlighted a number of shortcomings, how the actual costs in an...
Over the past two decades, there has been a notable shift from standalone retirement funds to commercial umbrella funds. This transition has been driven by increased cost pressures, tighter regulatory requirements, increased demands on trustees, the desire...
Increased flexibility In the old days, joining an umbrella fund meant a very limited set of investment options for participating employers – and the cost of any customisation outweighed its benefits. Today, many umbrella funds offer participating employers a...
