Umbrella funds opening up
Cost comparisons of these retirement funds will become easier
Umbrella retirement funds sponsored by large life assurance companies that belong to the Association for Savings & Investment South Africa will disclose the costs they charge employers and members in a standardised way from March 2019. This will make it easier for employers and their consultants to find the most cost-effective umbrella funds for their staff. Umbrella funds provide a single retirement fund for several employers whose members belong to sub-funds all using the same administration and investment services. Commercial umbrella funds are sponsored by large life assurers, and the services are typically provided by those companies. Currently, funds charge for services in a variety of ways and levy either rand amounts, or percentages of the money invested in the fund or an employer's payroll, making comparisons almost impossible. Improved disclosure of umbrella fund costs through the new retirement savings cost disclosure standard is particularly important, given an increasin...
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