How to get more from a pension fund
Every employer should use an independent adviser to put the retirement fund out to tender every couple of years
Choices you and your employer make about your retirement fund could cost you millions of rands over the 30- to 40-year period you save for retirement. An analysis of the retirement fund options used by one employer shows that as an employee, you could retire with savings between 30% and 100% more than you would get if your employer chose a retirement fund option with lower costs. As your retirement fund makes up the biggest part of your savings, paying attention to where the money is invested and the costs of those investments can make a huge difference to how much you have at retirement. A medium-sized employer in KwaZulu-Natal has its employees on five different funds. Life cover Independent financial planner Wynand Venter from Wynsam Wealth calculated that a new employee, just out of university and starting his first job on a salary of R20,000, could retire in 45 years with R8.9-million, R11.7-million, R12-million, R15.6-million or R18.1-million depending on which fund his employ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.