STEPHEN CRANSTON: Counselling retirees is critical in stretching their savings
Most people will end up earning 25% of their salaries or wages in retirement unless they are helped with information to raise this
The week of the Sanlam Benchmark conference is a useful time to reflect on whether the retirement fund industry is doing its job. Of course, whatever progress it makes in reducing costs — by bringing in cheap index funds, for example — the number one, two and three problem is insufficient savings.
At least it is a more manageable industry. Sanlam marketing actuary Viresh Maharaj (though I believe he has a less ridiculous title these days) says there were 13,000 funds in 2005 and 1,500 funds in 2019. And there are also 350 funds that are in the process of transferring into umbrella funds or merging.