pension-fundAt retirement, if you have worked in a corporate company, you will be part of the companies group pension fund or other retirement saving mechanism. The employee, as well as the employer make a contribution to the pension fund for the benefit of the employee subject to the rules of the pension fund scheme and in terms of the law as contained in the pension funds act.

As entrepreneurs or as people working for small businesses, it is very important to cater for your retirement by making a contribution to a pension fund, provident fund or similar investment vehicle that will give you a capital amount at retirement, which, if invested in a conservative investment, will give you an income sufficient for you to live a lifestyle similar to the one you are accustomed to, taking into account any future medical expenses.

Contact us to discuss your retirement investment options if you are an entrepreneur or work for a small business or simply do not think you are saving enough for your retirement and we will assist you to start saving for retirement or to supplement your existing retiremenet plan.

A pension fund is a pool of assets which are invested on behalf of the organisation for the benefit of the pool of employees that are contributing to the fund. The funds are typically administrated by a large investment company but in some cases are invested by the companies themselves.

Due to the nature of pension funds, they generate very large asset bases and make up the largest investors on the Worlds stock markets, wielding tremendous power over the companies that they invest in. Most office and shopping centre developments are made using money from Pension funds.

A pension fund is a tax efficient investment which the South African government is encouraging through the provision of incentives to save for retirement. Under the current South African system, unless people save for their own retirement, the likelihood of the government being able to afford to pay a pension to the elderly in the twilight years that even remotely resembles a reasonable living amount, is highly unlikely.

In recent times the SA government has used such mechanisms as the Tax free savings account to encourage people to invest for their retirement and at the same time giving them a tax break. By saving for your own retirement, you are effectively not depending on the state to provide for you and would be a very wise decision.

Contact us to discuss the various pension fund/retirement saving options available to you.