You can comment on the paper

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.