Michele Ongley, head of institutional b u s i n e s s d e v e l o p ment a t 10 X Investments, says retirement fund savings can be invested in either compulsory or discretionary products.
Compulsory products are the products in which employees invest through their employers. She says this option is by far the cheapest for employees. In addition to group risk benefits like disability and death cover, the employer also contributes towards the employee’s retirement fund savings.
Ongley adds employees should ensure their contribution rate is maximised and should always contribute the highest possible percentage. She says employees are often too concerned with the takehome value of their package and opt for t he l owest contribution rate as a result. “As little as a 2% additional monthly contribution, which is often less than R1 000 in take-home pay, can add 12% more money at retirement.”
Those who aren’t formally employed, who are employed by a company that