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As a central knowledge portal to the retirement and related industries, EBnet publishes a range of daily articles submitted by a range of industry organisations, experts and contributors. Readers can also comment on and contribute to articles.


Investec’s Koseff own retirement plans mirrors the changing face of retirement

“Retirement is not what it used to be” might sound trite, but it certainly rings true in the 21st century where people are living much longer, they are physically more active and stay healthier for longer. “Official” retirement could be just another step-change to a different lifestyle or career. Investec’s Stephen Koseff is interviewed by René Grobler, Head of Investec Cash Investments, regarding his personal view on the next stage of his life. “I don’t think that people should retire. For me, the kind of stuff that I will be doing is just going to be different” says Koseff. ” There is an ability to have a second life, from a work point of view. You need to take some things a bit easier, y

How does Tax impact retirement savings

Despite the tax benefits on retirement contributions and the tax free growth, the fact that pension income benefits are ultimately taxed has led people to question whether saving in a retirement fund really is better than making your own retirement savings arrangements with after-tax earnings. One of the main ways government encourages people to save for retirement is to offer tax deductions on saving in an approved retirement fund. While this tax relief can be very helpful when you’re working and contributing to a retirement savings fund, the benefits that you eventually receive from your retirement fund when you stop working are still taxed. To help South Africans make informed retirement

How much does SA business spend on its employees?

About 14% of total spending, according to recent figures. A quick review of the data shows that this proportion has remained relatively stable over the last decade. In the second quarter of 2009, employment costs contributed 15% of total expenditure in the formal business sector. Although there hasn’t been a major change over time for the sector as a whole, there are notable differences between industries. Let’s take a look at the breakdown of total spending. The formal business sector1 spent a total of R2,39 trillion in the second quarter of 2018, according to the latest Quarterly financial statistics (QFS) report (excluding capital expenditure). A rundown of the expenditure data, collected

Living annuity drawdown rate remains stable at 6.6%

Living annuity policyholders managed to keep the average drawdown rate practically unchanged at around 6.6% for two years running, despite a steep rise in the cost of living in South Africa over this time. The 2017 Living Annuities Survey compiled by the Association for Savings and Investment South Africa (ASISA) shows that living annuity policyholders withdrew on average 6.64% of their capital as income in 2017, compared to 6.62% in 2016. Taryn Hirsch, senior policy advisor at ASISA, says when ASISA started collecting consolidated statistics on South Africa’s living annuity book in 2011 the average drawdown level was 6.99%. * The average income drawdown level is weighted by fund size (the t

FSCA warns the public against Mr Pieter Davis

The Financial Sector Conduct Authority (FSCA) warns the public to act with caution when dealing with Mr Pieter Davis. The FSCA received information that Mr Pieter Davis created a website with all Plus Plan’s details (FSP number and physical address), and markets investment products. On the website the contact person is Mr Pieter Davis* and it is stated that the phone systems are being upgraded, with people being advised to contact brokers or request a call on the contact form. The website is not created by Plus Plan, and Mr Pieter Davis is not known by Plus Plan. Plus Plan with FSP number 2234 is authorised to market short-term insurance products only. It is the FSCA’s view that the abovemen

MTBPS: A to-the-bone honest budget

It was clear going into this Medium Term Budget Policy Statement (MTBPS) that is was going to be much tougher than previous years, simply because economic growth and tax revenues are so much worse than had been forecast. Economic growth expectations for 2018 have been halved from 1.5% in the February Budget Speech to 0.7% now. Likewise the messaging is very different compared to February’s Budget Speech and the last MTBPS which was delivered by former Finance Minister Gigaba. Slower growth will have a ripple effect in terms of tax collection which will, in turn, place additional pressure on fiscal targets and debt to GDP ratio. From a deficit of 3.6% of GDP in February, we now expect a defic

Revenue is a thorn in government's side side

Medium Term Budget backs Ramaphosa’s stimulus plan. Government’s 2018 Medium Term Budget Policy Statement (MTBPS) provides clear links between the medium-term expenditure statement on the one hand and, on the other hand, President Ramaphosa’s five growth enhancing reforms, namely: reprioritisation of expenditure support for job creation establishment of an infrastructure fund addressing pressing problems in education and health promoting investment in municipal infrastructure Spending to be done wisely Importantly, government’s intention to get things going has not led to a boost in the overall level of spending (although we should be cutting spending). Rather, the National Treasury has stuc

Facebook and Twitter Are Old News to Young People

When it comes to their social media preferences, U.S. teens are about as loyal as Brutus was to Caesar. Back in 2013, Facebook was their social network of choice. In 2014, Instagram took the throne for a while before being replaced by Snapchat in 2016. Now, in the fall of 2018, Snapchat is still the number 1 for teens in the United States, but Instagram is making up ground. According to the latest edition of PiperJaffray’s bi-annual “Taking Stock With Teens” survey, 46 percent of the 8,600 teenagers polled named Snapchat their favorite social media platform, while 32 percent of the respondents picked Instagram as their platform of choice. In terms of usage, Instagram even surpassed Snapcha

Most popular social networks worldwide as of October 2018, ranked by number of active users (in mill

This statistic provides information on the most popular networks worldwide as of October 2018, ranked by number of active accounts. Market leader Facebook was the first social network to surpass 1 billion registered accounts and currently sits at 2.23 billion monthly active users. Sixth-ranked photo-sharing app Instagram had 1 billion monthly active accounts. Social networks The leading social networks are usually available in multiple languages and enable users to connect with friends or people across geographical, political or economic borders. Approximately 2 billion internet users are using social networks and these figures are still expected to grow as mobile device usage and mobile s

Glacier by Sanlam appoints Francis Marais as Head of Research

Glacier by Sanlam has announced the appointment of Francis Marais as Head of Glacier Research with effect from 1 October 2018. Francis was previously a senior research and investment analyst at Glacier. The Glacier Research team comprises highly qualified investment professionals who support the business by providing independent research on local and global collective investment funds, as well as ongoing research on a wide variety of investment-related topics. The team’s Shopping List is a highly sought-after publication that assists financial intermediaries in making better investment decisions. Francis is a CFA charter holder and has a BCom (Hons) degree in Financial Analysis from the Un

How to support a loved one with Breast Cancer

In South Africa, it’s estimated that 1 in 27 women will experience breast cancer, making it the second most common cancer in women of all races, aside from non-melanoma skin cancer. The good news, however, is that advancing early detection methods are helping more and more women discover it in stage one, when it’s extremely treatable. With about 19.4 million South African women age 15 and up at risk, it’s important to note all the implications of the illness, including hidden costs. That way, friends and family can offer the best possible support to a loved one with breast cancer. From a financial perspective, breast cancer can cost as much as R1 million, excluding any income lost if the pat

The must have 'money' conversation before you say "I do"

"When you get married it is not just your hearts that become one, but also your money. Even if you are a financially independent couple where ‘his is his’ and ‘hers is hers’, when you start to build a family, there is an inevitable merging of finances that you need to be prepared for," says Faeeza Khan - Legal Marketing Specialist from Liberty. According to Khan these are some of the topics that you and your partner need to discuss before you get married: Have an honest discussion about your debt Debt is one of the biggest financial challenges couples need to deal with. It could be worse for new couples planning to commit to a long-term relationship if one person brings in a lot of debt in

Soon-to-be-wed couples should pay equal attention to both wedding contracts and the big day!

The arrival of Spring – and wedding season – are likely to fill soon-to-be wed couples with excitement about their impending nuptials, and while it is undoubtedly good to plan the details of the celebration, it is also important for partners to pay equal attention to the details of their marriage contracts. Jeremy Woods, Senior Consultant Fiduciary Services, at leading financial advisory firm GTC, urges individuals to carefully consider their needs and to review their contracts before signing. “This has many consequences for your life together, and these may even continue after death has parted you,” he says.“It is entirely natural for couples to focus on making their wedding day as special

Investec Asset Management acquires controlling stake in Richfield Holdings, a leading SA private edu

Marking its first investment in the African education sector, Investec Asset Management, through its African Private Equity capability, has acquired a controlling stake in Richfield Holdings, one of the leading private sector tertiary education providers in South Africa. Founded 28 years ago, Richfield has more than 20 000 students enrolled across more than 40 campuses in South Africa, and a fast-growing distant learning offering to students from across Southern Africa. It offers courses through a number of specialist education brands, including Richfield Graduate Institute of Technology (RGIT) and the recently acquired AAA School of Advertising. The business offers a wide range of accredite

Don't just assume your risk benefits at work have you covered

When getting a new job, many people simply sign on the dotted line. Often not enough attention is paid to the risk benefits part of the employment contract. However, if you do not have someone to give you guidance and advice, you may miss important details and as a result leave yourself vulnerable to being underinsured. Karen Bongers, Product Actuary at Sanlam, says that people who receive risk benefits as part of their remuneration package should critically analyse their cover to determine whether they are adequately insured under the employer’s scheme. “A regular conversation with a financial planner is, in fact, critical if you want to ensure that you have sufficient benefits in place to

Instant Cryptocurrency Transacting Has Arrived in South Africa

SA Fintech Startup YOU# and Israeli Tech Giant Virtual Crypto Bring Instant Cryptocurrency Transacting to South Africa - The deal will encourage mass adoption in a region where there is already heightened interest in digital currencies. YOU# a South African based fintech company that provides turnkey cryptocurrency mining; Financial Planning Institute accredited blockchain and digital currency training to certified financial planners (CFP®️); and operates a cryptocurrency investment platform - today announced their securing of a distribution agreement with Virtual Crypto. Based in Israel, Virtual Crypto Technologies Inc. is an international leader in making day-to-day cryptocurrency transact

Start a retirement account next week…..

Start a retirement account next week and two things will happen: - You will be more financially prepared than 99% of your peers, and; You’ll have an investment that offers huge tax/growth advantages in exchange for your promise to continuously invest in it for the long term. A retirement account–whether it’s a Retirement-Annuity (RA) or Pension/ Provident Fund (PF), lets your money grow at an accelerated rate with hardly any extra work from your end. Now let’s get into the details. Tax The first and most significant benefit is the tax deductibility of retirement account contributions. As from 1 March 2016 all contributions to PF and RA funds are consolidated and are deductible up to 27.5% of

Medium-term Budget should get fairly close to February Budget's target, despite current economic

With South Africa currently in a mild recession and growth below what it was in 2017, consumers are increasingly under pressure. South Africa is also facing an election year next year, meaning Cyril Ramaphosa is at a critical point in his presidency. As such, all eyes will be on the Medium-term Budget Policy Statement (MTBPS) next week, delivered by newly appointed Finance Minister, Tito Mboweni. According to Old Mutual Investment Group Head of Economic Research, Johann Els, the numbers for the current fiscal year are actually looking better than feared given the recession. “Revenue is running ahead of target and spending is actually below target,” explains Els. Consequently, next week’s Bud

The value of a Financial Adviser

When people think about financial advisers they often think that only rich people have them. They think that they do not have enough money to invest and that a financial advisers only deals with stock market investments and choosing the best portfolio to invest in. In reality financial advisers add much value than that. Alexander Forbes Financial Planner Rita Cool explains the value of having a financial adviser to guide you in financial decisions. Research suggests that engaging with a trusted and qualified adviser and making the correct financial planning decisions can add 1.82% per annum to a client’s returns over time, compared to someone without an adviser. This is not due to the advise

New Labour Laws Amendment Bill will usher in new rules for parental leave

The Basic Conditions of Employment Act 75 of 1997 (BCEA) presently entitles a female employee to at least four consecutive months of maternity leave. The BCEA does not, however, make provision for similar leave benefits for adoptive parents, the other parent or for parents involved in surrogate arrangements. The Labour Laws Amendment Bill (LLA Bill), which has been passed by Parliament and has been sent for assent by the President, amends the BCEA to provide for such leave. The leave is categorised into three groups: parental leave, adoption leave, and commissioning parental leave. The amendments also provide for the payments during these leave periods. The LLA Bill amends the BCEA to provi




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