Coun­selling for re­tire­ment fund mem­bers

Weekend Witness - - Leisure -

SOUTH­African­r etire­ment­fund­mem­bers­are­over­whelmed­by­count­less­op­tions­—­from­choos­ing­an­in­vest­ment­portf olio­dur­ing­their­work­ing­y ears,­t o­their­r etire­men­twhen­they­need­to­choose­an­an­nu­itythat­will­sus­tain­them­for­the­rest­oftheir­li ves.

This­is­ac cord­ing­t o­M omen­tumCor­po­rate­Fund­sAtWork­head­Kather­ine­B arker,­w ho­sup­port s­the­im­ple­men­ta­tion­of­the­new­re­tire­ment­fund­def ault­r egu­la­tions­set­f orMarch­1,­2019.­Re­tire­ment­funds­will­ be­re­quired­to­en­sure­that­mem­ber­sre­ceive­ben­e­fit­c oun­selling,­t o­pr ovide­in­for­ma­tion­and­to­as­sist­themin­mak­ing­appr opri­ate­de­ci­sions­t oen­hance­their­re­tire­ment­out­comes.

“Our­re­search­shows­many­mem­bers­of­the­r etire­ment­funds­we­ad­min­is­ter­do­not­ha ve­a­per sonal­fi­nan­cial­ad­viser­and­their­only­ac­cessto­fi­nan­cial­ad vice­is­thr ough­theirscheme’s­fi­nan­cial­ad viser.­T he­r etire­ment­ben­e­fits­coun­selling­ser­vicewill­be­of­tremen­dous­value­to­these­mem­bers,”­said­B arker.

Re­tire­ment­ben­e­fit­c oun­selling­can­be­in­stru­men­tal­in­de­liv­er­ing­bet­ter­out­comes.­“One­of­the­ways­it­willimprove­out­comes­is­by­em­pow­er­ing­mem­bers­with­r el­e­vant­in­for­ma­tionat­key­de­ci­sion-points,­such­as­res­ig­na­tion­or­r etire­ment.”

How­ever,­to ­b e­ able­t o­mak e­in­formed­de­ci­sions­at­these­crit­i­cal­stages­of­a­mem­ber’s­life,­they­also­needac­cess­to­sim­ple­and­eas y-to-un­der­stand­in­for­ma­tion­on­their­ben­e­fits.

This­is­w hat­ben­e­fit­c oun­selling­will­aim­t o­achie ve­—­b y­pr ovid­ing­ an­op­por­tu­nity­for­funds­t o­en­gage­with­mem­bers­not­only­on­fund­ben­e­fits,­but­also­to­lift­the­over­all­lev­elof­fi­nan­cial­ed­u­ca­tion­of­mem­ber s,said­B arker.

A­good­r etire­ment­fund­so­lu­tion­needs­to­en­able­fi­nan­cial­ad­vis­ers­tode­liver­their­“best­of­ad vice”­so­lu­tion­f or­a­p ar­tic­u­lar­client.

“We­en vis­age­a­c om­ple­men­tary­part­ner­ship­be­tween­re­tire­ment­ben­e­fits­coun­selling­and­the­fi­nan­cial­ad­viser­de­liv­er­ing­fi­nan­cial­ad­vice,”­she­said.­— ­B usi­ness­E di­tor.

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