South Africa. Will umbrella funds become the default in retirement fund management?

The case for the boards of trustees of standalone retirement funds to consider an umbrella fund strategy as an alternative has been strengthened by the recent introduction of the “default” regulations.

These regulations came into effect on September 1 2017, with implementation from March 1 2019 for all retirement funds registered before March 1 2018.

The regulations aim to ensure the protection, preservation and consolidation of retirement benefits as well as the sustainability of post-retirement benefits paid to members.

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