You might be a member of an umbrella retirement fund and not even know it. You probably don’t realise there could be both advantages and disadvantages in being a member of one of these funds instead of one set up to invest the savings you, your colleagues and employer make.

An umbrella fund is a retirement fund which multiple and possibly unrelated employers may join as opposed to a single fund established for one employer only. Umbrella funds are set up by a large financial institution, usually a life assurer, or by a union or bargaining council. They are very different from what are known as standalone funds, which are set up by a single employer for its employees only.

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