There are good reasons for preserving your retirement savings in a preservation retirement fund despite the competing options now open to you when you change jobs. Recently introduced regulations under the Pension Funds Act are likely to result in more members preserving their retirement savings in employer-sponsored and umbrella funds that should have lower costs than preservation funds and retirement annuities available to individuals. Within 18 months of the regulations taking effect on September1 last year, retirement funds are required to preserve your savings in your fund and only pay you out or transfer your savings to another fund if you request it. With "in-fund preservation" and the ability to transfer your savings to a new fund you may join - known as "portability" - you potentially have four options for preserving your retirement savings. In addition to this competition to preservation funds, tax law amendments aimed at aligning the incentives that savers in pension and ...

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