Employees have the right to be part of a retirement fund whose charges do not eat too deeply into their savings, and companies have a responsibility to do the research to ensure this. Michelle Acton, principal consultant at financial services company Old Mutual Corporate Consultants, has this advice when it comes to choosing an umbrella fund for employees: • Take the time to compare which model - a set cost per member or a percentage of salary, for example - will be the most beneficial for your employees. This will depend on the average salary and the number of members, among other things. While charging a fixed rand fee per member per month is generally quite benign in terms of impact on retirement savings, the fees charged as a percentage of payroll are helpful to avoid lower-income members carrying a relatively heavier burden in terms of fees; • The amount of flexibility and customisation within the umbrella fund will affect the costs. It is important to try to compare like with ...

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