You can comment on the pa­per

Weekend Argus (Saturday Edition) - - GOODPOSTER - MORE ABOUT TREA­SURY’S COSTS PA­PER ON PAGE 3

National Trea­sury’s dis­cus­sion doc­u­ment on the cost of sav­ing for re­tire­ment, en­ti­tled “Charges in South African re­tire­ment funds”, con­tains a com­pre­hen­sive re­view of charges and costs, which, among other things, com­pares the re­tire­ment sys­tem in South Africa with that in other coun­tries.

The dis­cus­sion doc­u­ment pro­poses var­i­ous pol­icy in­ter­ven­tions that could rem­edy some of the short­com­ings it iden­ti­fies.

The pa­per high­lights the im­por­tance of sav­ing for re­tire­ment and the need for you, as a re­tire­ment fund mem­ber, to re­ceive value for money.

The pro­pos­als con­tained in this dis­cus­sion doc­u­ment and four oth­ers will form the ba­sis of the re­form of the re­tire­ment fund in­dus­try, in an at­tempt to im­prove your chances of a fi­nan­cially se­cure re­tire­ment.

All the dis­cus­sion doc­u­ments can be found on Trea­sury’s web­site, www.trea­sury.gov.za

Com­ments on the charges dis­cus­sion doc­u­ment can be sub­mit­ted by Septem­ber 30 to Dr David McCarthy, re­tire­ment pol­icy spe­cial­ist by email to re­tire­ment.re­form@ trea­sury.gov.za. Fax to 012 315 5206, or post to Pri­vate Bag X115, Pre­to­ria, 0001. by in­ter­me­di­ary in­cen­tives. Trea­sury says this may be caused by re­bates paid by in­vest­ment man­agers to in­ter­me­di­aries, in­clud­ing lisps, and a re­luc­tance by ac­tive man­agers to un­der­cut their own ac­tively man­aged in­vest­ment funds on the plat­forms they con­trol.

A lack of ap­pre­ci­a­tion of the cu­mu­la­tive na­ture of ap­par­ently small an­nual fees by in­vestors.

In­vestors may fail to ap­pre­ci­ate that the out­per­for­mance re­ported by their in­vest­ment man­agers is of­ten mea­sured rel­a­tive to un­de­mand­ing or en­tirely in­ap­pro­pri­ate sel­f­re­ported bench­marks.

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