Not a peep about your nest egg
Major changes in pension industry you need to know about
There is an unusual silence around the future of pension reform, even though it will both reshape the pensions industry and lead to some substantial wealth redistribution
There is an unusual silence around the future of pension reform, even though it will both reshape the pensions industry and lead to some substantial wealth redistribution. A social security paper incorporating pensions was released last year. But according to Mike Prinsloo, head of institutional research at Alexander Forbes, the document is light on detail. The central proposal would have devastating consequences for firms such as Forbes and the employee benefits divisions of life offices such as Old Mutual, Sanlam, Liberty and MMI, as well as for union funds, which would lose virtually all their members. The paper foresees a 12% contribution of all earnings up to the unemployment insurance fund threshold (now about R190,000/year) going into the fund, which is now called the national social security fund (NSSF). Prinsloo says it is not clear whether this will operate like a defined contribution, where personal contributions are credited to each member, or whether there will be cross...
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