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.
The default retirement fund regulations introduced in March this year are aimed at supporting members of retirement funds to make better decisions at various points during their working lives, ultimately helping them to be financially independent when they retire.
As of this week, South Africans who are members of a pension or provident fund will hopefully start to feel the impact of three new regulations on their retirement savings. These so-called default regulations came into effect on 1 March 2019 and affect three important areas of retirement saving: how your contributions are invested while...
Today sees the South African retirement industry take one step closer to helping fund members enjoy a seamless retirement journey. Following the introduction of the amendments to the Pension Funds Act in September 2017, the deadline to comply with the Act’s default regulations is now effective.
Treasury’s new default regulations for retirement funds are set to come into full effect from 1 March this year. Among other things, they will require retirement funds to have a suitable default investment portfolio in place for pre-retirement savings that is not excessively complex or unreasonably expensive.
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za