Employee Benefits is a broad term incorporating Pension and Provident Funds, Medical Aid, Health & Wellness, Gap Insurance, Asset Management and Financial Planning amongst others and although separate from each other, all are intertwined.
A more detailed look at each of the components is set out below:
Only 6% of South Africans manage to retire on an income which allows them to maintain their pre-retirement lifestyle and this is primarily due to the fact that they:
Therefore, the lack of a living income is self-inflicted to a large extent but aggravated by increased longevity and a low-interest rate environment. It is generally accepted that the target income in retirement is a pension equal to 75% of the final remuneration earned and to attain this, one needs to save 15% of earnings for a period of 40 years. A replacement ratio of 75% is thus Advisory Services yardstick in terms of investment strategies and contribution levels with communications to fund members having these fundamental concepts as a focal point.
It is an undisputed fact that an Employer sponsored group retirement fund is the best investment vehicle for the average employee in South Africa because:
We provide independent advice around these issues based on many years’ experience and expertise.
We facilitate independent investment consulting advice and monitor and report on benchmarks and performance as well as comparisons relative to peer groups.
Advisory Services plays an important role in tracking and monitoring your Funds’ investments and assisting with the development of:
Advisory Services places great emphasis on governance and applies the following three principles in our relationships with clients:
We ensure clients are kept informed of legislative and legal developments which impact on retirement funds, always bearing in mind the provisions of Pension Fund Circular 130 and the principles of King 4.
We assess client training needs at Trustee, Employer and Member level and provide the relevant training.
Advisory Services facilitates and develops the following:
Communication is a vital component in the modern retirement fund landscape particularly in respect of defined contribution arrangements where the investment risk sits with members. We focus on linking investments to attainment of replacement ratios and ensure that members are kept informed to enable them to make informed choices.
011 554 1900
2 Augrabies Rd, Vorna Valley, Midrand, 1686