René Isaacs, Operations Manager at Fairheads Benefit Services
Education is and should be the primary focus of beneficiary funds, into which retirement fund trustees may elect to pay lump-sum death benefits on behalf of the financial dependants of deceased retirement fund members, generally minor children. Obtaining an education is the most significant pathway toward long-term empowerment as minors are assisted towards adulthood.
Education expenses typically form the largest share of annual capital requests and withdrawals from beneficiary funds and are made on an ad hoc request basis by guardians or caregivers to the trustees of the fund. Education-related expenses include school/tertiary education fees, transport, uniforms, stationery and books, and student accommodation.
Non-educational payments
While education provides the foundation, however, Fairheads recognises that a member’s wellbeing, stability, and community integration often depend on a wider set of needs. For this reason, we also process a broad spectrum of non-education expenses when these align with the best interests of the member and comply with fund rules.
A sample analysis of one of our funds over a six-month period in 2025 reveals a interesting pattern of the types of expenses that guardians or caregivers request beyond schooling. The number of transactions is high, at 5,535. A description of some of these requests per category as shown below offers interesting insights into the real-life circumstances of members or beneficiaries who rely on beneficiary funds and umbrella trusts for day-to-day support.
Each non-education payment is subject to strict governance and documentation requirements, ensuring funds are used responsibly, transparently, and in the best interest of the minor.
Clothing
By far the highest non-education transactions recorded (2,379) were for clothing. This is a sobering reality, indicating that many households battle to afford clothing within their monthly budget.
Boosting monthly income
Next highest were requests for daily living expenses (1,268) and groceries (469). Again, households are battling to come out given the high cost of living.
Cellphones
Other significant transactions recorded related to cellphones (247). This stands to reason as ownership or use of a mobile device is nowadays indispensable, for example for emergency situations, online education and staying in contact with loved ones.
Accommodation
Common non-education transactions recorded were payments for rental costs (265) and accommodation (291), the latter relating largely to assisting tertiary students to live close to their place of study. Related to this were requests for building costs (23 transactions), house purchases (7 transactions), renovations (2) and home loan payments (3) These figures reflect a fundamental reality: if children do not have a roof over their heads, how can they even go to school? In cases where a guardian or primary caregiver passes away, minor dependants may be left in precarious living conditions. Beneficiary funds and umbrella trusts can therefore play a critical role in ensuring children have safe, adequate accommodation, whether through structural repairs, building additional rooms, or facilitating the purchase of a modest family home.
Furniture and appliances also featured at 154 transactions.
Transport and mobility
The data also shows vehicle purchases (12 transactions) and airfares (7 transactions). Transport-related expenses typically arise when guardians require reliable mobility to take minors to school, medical appointments, therapy, or family members. In rural or geographically dispersed communities, safe and reliable transport can significantly improve a child’s access to essential services.
Airfares (7), while less common, are often connected to family reunification, medical travel, or the relocation of minors when care arrangements change. These are evaluated carefully to ensure they serve the child’s best interests.
For older members, we had requests relating to learner’s driving licence fees (18) and driving lessons 30.
Entrepreneurship
Business start-up capital (9 transactions) is another notable category. This tends to apply to older minors or major members who may be establishing a small enterprise to support themselves or gain experience. Fairheads assesses these requests strictly to ensure they are feasible, responsible and aligned with the young person’s long-term development.
Medical cost and psycho-social wellbeing
Requests for medical costs, spectacles and medical aid contributions totalled 421; in addition, a smaller but important category includes addiction rehabilitation (6 transactions). Rehabilitation support may be authorised in cases where a member requires treatment for substance-related challenges. Such interventions aim to safeguard long-term wellbeing and prevent further social or educational disruption.
Celebrations and rituals
Certain expenses relate directly to life events, such as birthday parties (71 transactions) and holiday expenses (4 transactions).
On the cultural side, ceremonial costs such as unveiling ceremonies (9), initiation costs (16) and traditional healing (4 transactions) are allowed when they support a beneficiary or members well-being and to help stay connected to their identity, traditions and community. Funeral-related transactions totalled 9.
Supporting children holistically
What emerges from the above is a clear picture: beneficiary funds can support holistic childhood development. Education is most effective when a child’s broader needs – emotional, cultural, physical and social – are met.
By supporting a wide range of essential expenses, beneficiary funds can help families create stable environments where children can thrive, learn and ultimately transition confidently into adulthood.
ENDS
