Momentum Corporate’s multi-employer umbrella fund, FundsAtWork, is receiving requests from participating employers to allow members to resign “artificially” to get access to their retirement savings. Employers then reinstate the employee once they’ve obtained access to their savings.
At the recent inaugural Allan Gray Retirement Benefits Conference, Andile Khumalo, founder of KhumaloCo, hosted a panel discussion via Zoom webinar to explore the elements that consultants, advisers and employers should consider when looking to join an umbrella fund. Hazel Hopkins, senior partner at Axiomatic Consultants, Vusi Maswili, director at ASI Financial Services, and Adv. Christi Franken, business development executive at Efficient Benefit Consulting, shared the factors they think are most important when evaluating umbrella funds.
Sanlam today released the results of its 40th Benchmark Survey. The research showed the deep impact that COVID-19 had on the retirement industry, with 27% of stand-alone retirement funds and 41% of umbrella funds’ employers having suspended retirement fund contributions last year. This resulted in an average suspension across all fund types of 4.5 months.
Members of umbrella retirement fund solutions will be able to assess the total impact of charges on their individual retirement benefits from next year October, when members of the Association for Savings and Investments South Africa (ASISA) implement the new Retirement Fund Standard: Effective Annual Cost (EAC) for Individual Fund Members.
South African businesses are losing up to a staggering R89 billion per year due to unproductive employees. This is according to new research by Momentum Corporate, which reveals that presenteeism – the phenomenon when employees are at work but not productive due to distractions – is costing these businesses 5% of Gross Operating Profits (GOP)1.
Women are more worried about not having enough money when emergencies hit compared to their male counterparts – and this has a major impact on their productivity at work. “From our research, women are also more willing to save for emergencies than men” says Rigitte van Zyl, Head of Client Value Propositions at Momentum Corporate.
Retirement fund members invested in more aggressive portfolios delivering poor returns during certain market cycles may be tempted to make emotional, short-term decisions. Katherine Barker, Head of Momentum FundsAtWork, says financial advisers play a key role in helping members to avoid hasty portfolio changes that reduce the probability of reaching their long-term retirement goals.
Saving through their employer’s retirement fund is often the only form of savings many South Africans have. With July marking National Savings Month, Katherine Barker, Head of Momentum FundsAtWork, says it’s the perfect time for employers and their financial advisers to ask some hard questions about how their retirement fund can help employees make smart...
Millennials, an increasing portion of today’s workforce, are set to shape the world of work for many years to come. Katherine Barker, Head of the Momentum FundsAtWork Umbrella Funds, says that retirement fund solutions need to be flexible enough to address the specific needs of this rapidly-evolving workplace demographic.
Employers will find it much easier to select the most cost effective umbrella retirement fund solutions for their employees from March next year when the new ASISA Retirement Savings Cost (RSC) Disclosure Standard comes into effect. The new RSC Disclosure Standard commits members of the Association for Savings and Investment South Africa (ASISA) to present...
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