The two-pot system is the latest in a series of significant legislative changes which the retirement industry has seen in the last 10 years (see information box for more details). Most of the attention to date has been on the savings pot, that is the amount...
Though many of us may not fully grasp the profound impact of AI on the world, its transformative power is clear. Some of us have used tools like ChatGPT to improve our writing but today I want to focus on a few remarkable AI innovations that change lives in...
Retirement outcomes in South Africa are very poor. National Treasury estimates that 94% of members in employer funds are not on track to achieve desired retirement outcomes. There are several reasons for this, including the macroeconomic challenges facing...
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...
Over the past few months positive sentiment has swung significantly in South Africa's favour, thanks to the formation of South Africa's first government of national unity (GNU) since the 1990's and its new Cabinet. The new administration is expected to...
Risk in investing is a feature, not a bug. It is, in fact, the reason we expect to earn higher long-term returns than provided by risk-free assets. When thinking about risk, investors should think equally about investment term too. The longer we remain...