Retirement funds are securing pensions at significantly lower costs than those you will be offered as an individual when you need to secure a monthly income after you stop working. These lower costs - anything from 0.6% to 0.9% a year - will give you a higher pension or an inflation-linked income for longer in retirement. David Gluckman, chairman of Sanlam Umbrella Fund's investment committee and head of special projects at Sanlam Employee Benefits, said funds' default pensions or annuities could save members about one percentage point in costs a year. Alexander Forbes says its new retirement income product, available as a default annuity option for funds, saves on average 0.63 percentage points on costs when compared to other annuities you, as an individual, can get from other providers. Funds are reporting these outcomes ahead of the March 2019 effective date for regulations that will force trustees to choose suitable annuities for retirees rather than leaving members to find thei...

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