The retirement investment landscape is changing — and the new regulations favour the investor. Following the recent announcement regarding the new savings default regulations, fund managers will be required to disclose all fees and charges on their products from March 1 2019. While this has been the case for unit trusts for some time, there have been no standard disclosure requirements for retirement annuities, pension or preservation funds. 1. New transparency As of March 1, fund managers will have to disclose all fees and charges on their retirement annuity, pension and preservation products, including fees considered “other costs”, such as bank charges, audit costs, taxes (such as stamp duty), and custodian charges. This means that management and performance fees plus the “other costs” will be combined to give the total expense ratio (TER). Transaction costs (such as brokerage fees) will be added to the TER to give the total investment charge (TIC). For the first time, you will b...

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