Retirement fund defaults compete for your savings
Advisers worried about RAs, preservation funds and fees
Regulations oblige all retirement fund trustees to choose investments that are appropriate for the members, reasonably priced and competitive.
New regulations under the Pension Funds Act are forcing retirement fund trustees to choose more cost-effective investments and annuities as their defaults, a workshop with some of the country’s larger umbrella funds has revealed.
And their default investment and pension options have some independent financial advisers worried about the competition.