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It is time for a review of costs associated with managing retirement funds

[Johannesburg, 31 July 2014] - Both government, made clear in minister of finance Pravin Gordhan's 2014/2015 budget speech, and the financial services industry, can boost household savings for retirement and encourage retirement industry reform, particularly by increasing net retirement investment by reducing the associated costs.

An agreement between government and the financial services industry sets out how these objectives can be achieved. One key area pertains to ensuring greater access to employee-sponsored retirement savings, particularly through umbrella funds, as the administration and governance requirements, as well as associated costs, are generally lower than standalone funds.

Additional areas driving retirement reform include proposed governance and regulatory changes in line with the Retail Distribution Review (RDR), which is supported by National Treasury. The RDR aims to equalise the disparity in the industry in terms of affordability and product complexity, specifically regarding collective investment schemes and life insurance industries.
[Full Story.]
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Editorial highlights
It is time for a review of costs associated with managing retirement funds

Last updated : 31 July 2014


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