The annuities offered by the fund must be appropriate and

Legislation will ensure advice for retirement

Canada Goose Outlet It is common knowledge that South Africa is facing canada goose clearance sale a retirement crisis canada goose with most employed South Africans having insufficient funds to support themselves in their old age. Canada Goose Outlet

canada goose National Treasury has introduced changes to the Pension Funds Act canada goose uk outlet which it hopes will make it easier for individuals canada goose clearance canada goose outlet to make the correct choices about their retirement benefits and lower the costs associated both with products and advice. All retirement funds will have to Canada Goose Outlet have implemented these changes by March 1 2019. canada goose

canada goose deals In a nutshell, these changes will provide members with a default retirement investment portfolio and provide a default preservation option, as well as an annuity strategy on retirement (see sidebar). Key to all of this is that members will have to receive retirement benefits counselling before withdrawing funds either due to resignation or retirement. canada goose deals

canada goose coats What the changes essentially mean is that employees will not have to go into the buy canada goose jacket cheap retail market space and find an adviser to get retirement advice. This has been one of the major challenges in the industry and as David Canada Goose Jackets Gluckman of Sanlam Employee Benefits explains, is a large section of fund members who will not receive financial canada goose factory sale advice because they do not have enough accumulated to be of economic interest to financial advisers canada goose coats

canada goose store Currently, this means that an individual who wants to preserve Canada Goose Parka their retirement benefit when changing jobs, or an individual needing advice when retiring from a fund, may find it difficult to get advice in the retail market. Even if they do, canada goose uk shop the costs are high and eat into their relatively small retirement benefit. So, it is not surprising that, when given the option of investing or taking the cash, many members choose to just Canada Goose online take the cash even if they know it is not the right financial decision. canada goose store

cheap Canada Goose Once the changes are implemented and members have appropriate default options and in house advice, theoretically they should find it easier to make the right choices. canada goose coats As uk canada goose Gluckman says benefits counselling, if implemented in the spirit of the legislation, provides the most practical means to fill that gap and empowers such fund members to make better financial Canada Goose sale decisions. Done properly, it complements financial advice by addressing a critical gap. cheap Canada Goose

canada goose black friday sale An online survey conducted by Sanlam asked trustees and principal officers whether or not these regulations would have a material impact on their members. More than half of respondents believed the regulations would be extremely effective or very effective in improving retirement outcomes, nearly 70% believed there would be a large increase in preservation cheap canada goose uk and http://www.canadagoosesalesus.com nearly 40% believed charges in annuities on retirement would decrease. canada goose black friday sale

Canada Goose online However, a separate buy canada goose jacket survey by Sanlam of professional employee benefit consultants (those firms that advise trustees and principle officers) had a different perspective. They believe that the outcome will depend on how well retirement benefits counselling is canada goose coats on sale implemented and many believe that retirement funds will only concern themselves with doing the bare minimum to comply. Canada Goose online

canadian goose jacket These professionals are probably correct in their scepticism as any benefit comes with a price tag which will ultimately be carried by members. However, considering the possible cost savings to members of accessing institutional products as well as the upside to those funds in higher preservation rates, there could be additional money to provide more extensive retirement counselling. This means if a member does not actively select an underlying investment portfolio they will be placed into the default option. The trustees need to ensure that the default investment is appropriate for the members and that the fees and charges are reasonable and competitive, and all fees are fully disclosed. canadian goose jacket

canada goose clearance Most funds already offer a default investment portfolio but those may not currently meet the new requirements in terms of appropriate investments and disclosure of fees. canada goose clearance

Canada Goose Parka Default preservation and canadian goose jacket portability Canada Goose Parka

Canada Goose sale Although members of employer funds can still take their retirement benefit when they resign, the fund must offer a default preservation option so that the member can leave their retirement benefit in the fund if cheap Canada Goose they choose to do so. Canada Goose sale

Canada Goose Jackets Alternatively, the fund must allow for a transfer of the benefit to the new employer fund. The annuities offered by the fund must be appropriate and suitable for members. Canada Goose Jackets

buy canada goose jacket cheap This means it must take into account the level of income that will be payable, the investment, inflation and other risks canada goose store as well as income protection granted to beneficiaries. Fees and charges need to be reasonable and fully transparent. Members must also be given access to retirement benefits counselling not less than three months before their normal retirement age buy canada goose jacket cheap.