Access a wider range of investment choices in an employer retirement fund
6 Sep, 2022

Access a wider range of investment choices in an employer retirement fund

Elton James, Head of Corporate Business at Glacier by Sanlam

Introduction

Elton James, Head of Corporate Business at Glacier by Sanlam, unpacks how the Glacier Retirement Fund Solution enables employers and the trustees of their respective retirement funds, to offer fund members a much wider range of investment choices within their employer retirement fund. Employees also have the opportunity, with the help of their financial intermediary, to be more involved in their investment decision-making around their retirement fund, giving them investment flexibility, transparency and choice – provided the Glacier Solution is an approved option in the employer’s offering.

How to save enough and invest with confidence

One of the steps to retiring with confidence is ensuring that you’re making a large enough contribution towards your employer’s retirement fund. All retirement funds offer investment strategies, managed by respected asset managers, within strict mandates. However, they may not necessarily fit investors’ individual circumstances regarding risk and asset allocation.

You may have an investor who prefers to participate in the investment decisions in their portfolio. They have specific needs and goals, and they have a strategy to meet them that they’ve designed with their intermediary. They may therefore want to have a little more flexibility and maneuverability in the underlying funds. “They can”, says Elton, “that’s what the Glacier Retirement Fund Solution enables them to do”.

What the Glacier Retirement Fund Solution offers

In a nutshell, the Glacier Retirement Fund Solution gives fund members the opportunity to tailor their investment portfolio in their employer’s pension or provident fund to their unique needs and circumstances, and as part of their diversified investment plan.

Here’s what the Solution offers:

Choice – Glacier has a wide range of underlying investment funds available, as well as the option to invest in individual shares and exchange traded funds (ETFs).
Flexibility. Members can switch and rebalance[1] their portfolio at no additional cost and to suit their needs and their risk profile at any point in time.
Freedom and control. Members can tailor their pension or provident fund to match their risk appetite and personal financial circumstances, more accurately. For example, they may wish to fully utilise their offshore exposure in developed or emerging markets. The default options on their employer’s retirement fund may have offshore exposure but may not be fully utilising the offshore limit and will also be guided by mandated exposure. The Glacier option gives them this freedom to maximise their desired asset class exposure, within Regulation 28 of the Pension Funds Act guidelines. Furthermore, as they approach retirement, they can control the asset allocation in line with their first few years of retirement, by taking risk off the portfolio and apportioning it appropriately.
Seamless transfer. If a fund member leaves their job, their benefits can be transferred without exiting the markets. When they leave their employer’s retirement fund, their benefits can be transferred to a preservation fund, or if they’re retiring, they can invest in a retirement income plan on Glacier’s platform.
Transparency. The fees are charged for the administration and management of the investment and are set out in the application form, and the contract.
Access to our technology platforms. The client and their intermediary will have access to our technology platforms that offer statements, transaction capability and real-time pricing, placing more control in their hands.

How to invest in the Glacier Retirement Fund Solution

Clients may select the Glacier Retirement Fund Solution if their employer has approved this solution as part of their retirement fund offering. Qualifying criteria will differ from fund to fund.

Having met their fund’s qualifying criteria, the fund member can take ownership of their retirement and invest in a way that suits their specific individual circumstances and needs, as determined by themselves and their financial intermediary.

Own your retirement

“For an employee, their retirement fund is probably their biggest retirement investment. Many members simply tick the box and contribute to their pension or provident fund without regular review. Too often, members only take an interest in their employer’s retirement fund as they approach their retirement date. The Glacier Retirement Fund Solution allows them to ‘own’ their retirement in advance. It means that they can now plan the retirement they deserve, long before they leave formal employment for good”, says Elton.

If a client is accustomed to a great measure of control over their financial matters, alongside their financial intermediary, then this freedom and control are also within reach in their employer’s retirement fund with the Glacier Retirement Fund Solution.

ENDS

[1] A switch is when you request one or more funds to be moved within your investment plan. You therefore request a change in the composition of the funds in your investment.

Rebalancing means you want to reshuffle your entire portfolio. You can choose to invest in a new selection of funds. This can also be done if you want to invest different proportions in your current underlying funds.

Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.

Sanlam Life is a licensed life insurer, financial services and registered credit provider (NCRCP43).

About Glacier

Endorsed by Sanlam, Glacier offers a wide range of investment solutions, designed to assist clients to create and preserve their wealth throughout their lifetime. These solutions include local and international investments, pre- and post-retirement solutions as well as share portfolios. We also offer a number of guarantee-type products for investors seeking certainty in the current market volatility. For more information, please visit www.glacier.co.za

[1] A switch is when you request one or more funds to be moved within your investment plan. You therefore request a change in the composition of the funds in your investment.
Rebalancing means you want to reshuffle your entire portfolio. You can choose to invest in a new selection of funds. This can also be done if you want to invest different proportions in your current underlying funds.

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