South Africans need a wake-up call to understand how much the costs on their retirement savings matter, says Steven Nathan, the founder of low-cost passive investment and retirement annuity provider 10X. The fees you pay on retirement products available to you as an individual, such as an RA or preservation fund, have a "dramatic and predictable impact" on the pension you will receive in retirement, Nathan says. 10X estimates that a 2% difference in costs could make an 80% difference to your retirement savings. The costs paid by employer-sponsored and umbrella retirement funds are generally lower than those on financial products available to you as an individual, because trustees are able to negotiate lower rates with administrators and investment companies based on the size of the fund. These funds do not have to pay for marketing or for advisers to sell their products. Umbrella funds are growing rapidly, with more than R300-billion invested in more than 400 funds, of which at leas...

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