“There has never been a time of greater promise, or greater peril.”
Klaus Schwab, founder and executive chairman of the World Economic Forum

Highlights from the 2016 survey in numbers:

  • Only 1 in 5 retirees will be able to retain their current standard of living in retirement, say Principal Officers of stand-alone funds. This number is estimated to be significantly less for members in commercial umbrella schemes.
  • Despite the impact of longevity, normal retirement ages are still hovering at around 63 years.
  • Cost is no longer the primary decision factor when employers consider whether to migrate fund administration to a commercial umbrella fund platform. Efficient administration has been cited as an equally important attribute for 56% of stand-alone funds.
  • For 73%, loss of control of decision-making remains the number one deterrent for changing administration platforms to an umbrella arrangement.
  • 50% of stand-alone funds make use of a financial adviser on a pay-per-use remuneration basis to assist members with financial retirement decisions.
  • More than half of stand-alone funds (56%) do not believe that providing members with access to robo-advice is suitable for their fund’s profile of membership.
  • 4 out of 5 participating employers in umbrella funds have never considered moving to another fund. On average employers have been with the same commercial umbrella scheme for more than 8 years.
  • Participating employers are of the opinion that there is a joint responsibility between members’ own responsibility (40%) and employer and HR’s responsibility (32%) to encourage members to preserve their retirement benefits on withdrawal.
  • Participating employers are targeting a net replacement ratio of 67.3% of pensionable earnings with at least 43% weighing in that it is not a suitable tracking measurement, as members do not understand the concept and too many variables and assumptions are used in the measurement.
  • Retirees claim that they only discovered what retirement benefits they had in place within 2.8 years of their retirement date.
  • Only 1 in 3 retirees believe that they have sufficient capital to last for the rest of their lives.
Symposium 2017

Dates and Venues

  • 16 May - Durban
  • 24 May - Sandton
  • 2 June - Cape Town

Our goal? To unearth the issues in our industry.

Consulting views which challenge industry boundaries.

Looking to the future : As the retirement landscape changes and markets remain volatile, we answer the questions that will help to ensure the best outcomes for retirement fund members.

Article : David Gluckman

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