Umbrella Retirement Fund member information

Your employer has entrusted us with looking after your hard-earned retirement savings by investing your money in our Umbrella Retirement Fund. This is an important partnership between us and you and we look forward to a long and rewarding one.

We are an investment manager focused on creating long-term wealth for investors. We have been investing on behalf of clients since 1974. Over the long term we have been able to deliver superior returns at lower-than-average risk of loss. Learn more about us.

R500 per month
You benefit from lower costs

Multiple employers set up their own retirement schemes within the same umbrella fund which makes investing more cost-effective for you.

Employee engagment
Investments aimed at your stage of life

Your employer has chosen a default investment strategy believed to be suitable for most employees. Your contributions will be invested in this strategy, which is designed to automatically invest your savings in portfolios appropriate for your stage of life. You can choose an alternative if you want to. 

Your investment is safeguarded
Your interests are protected

The trustees are responsible for making sure that the Fund is well-run and their main focus is on protecting your interests as a member of the Fund.

Frequently Asked Questions

An umbrella fund is a retirement structure that allows many employers to join the same retirement fund and offer their employees a way to save towards a more comfortable retirement. Each employer sets up a separate scheme within the Fund for their employer group and chooses an underlying investment portfolio for their group.

Every month, your employer deducts a portion of your salary (discussed and agreed with you), which is then paid over to us and invested into the portfolio chosen by your employer for your scheme.

If you believe the selected portfolio is not suitable for you, you can choose an alternative from the range available.

The Fund’s board of trustees is ultimately responsible for governing the Fund. They ensure that all aspects of running the Fund, such as administration, compliance with regulation, communication with members and the underlying investment portfolios, work well and are what is best for members.

Investment professionals from Allan Gray, or your chosen manager, look after your money and aim to provide you with the best possible return over time.

Your employer’s scheme adviser, if they use one, is responsible for helping your employer choose a suitable investment portfolio for your scheme. If you wish to choose your own investment portfolio, your scheme adviser may be able to assist you. Alternatively, you can appoint your own independent financial adviser.

How much you should be saving toward your retirement depends on your age and when you first started saving. There is no correct answer; the more you invest the more freedom of choice you will have about when to retire, where to live and what to do in your retirement.

Click here to read more about how to save for a comfortable retirement.

By law, the trustees must decide how to allocate your money. To make this decision, they:

  • Do a full investigation, that can take up to 12 months
  • Identify all your dependants and potential dependants.
  • Establish the degree of dependency for each person
  • Allocate the money available as equitably as possible

The investigation is straightforward when all the necessary information and evidence is provided, or easy to obtain. If all the information is not available this can lead to a protracted investigation. The process can be difficult and painful for family and loved ones, especially when there is a pressing need for the money and/or the final allocation is not as they may have expected.

Trustees are not allowed to blindly follow your nominations

Although you may nominate who you would like to receive the money in the Fund, and the trustees will aim to follow your wishes, as far as legally possible, they must determine for themselves who your dependants are and how much they must receive.

Your nominations can be followed if they are in line with the outcome of the trustees investigation (i.e. you have nominated your dependants according to their dependency), or if you have no dependants.

You can shorten the process for your loved ones

If you keep Allan Gray up to date with your full family circle, and any changes to it, it will reduce the length of the investigation. This includes:

  • The contact information, and ID numbers if possible, of all your family members, partner, previous partners and close friends.
  • Anyone you are giving any money or other financial support to.
  • Your intentions with regard to those you are supporting, or may support in future.

Please log into your online account to keep your details up to date or download this form.

Although your scheme was started by your current employer, the Fund allows you to be a member in your own right. This means you can leave your investment to grow within the Fund until you retire, regardless of any changes to your employment.

If you leave your employer, the money you have saved will remain in your existing investment portfolio, which you can change if you need to at any time.

You can transfer your savings to another retirement fund if you wish, and you can make a withdrawal from the fund if you need to. Keep in mind that any withdrawals you make will be heavily taxed and will mean you have less money to retire with.

It is important to make sure we have the correct contact details for you, and if necessary, change these to your personal details when you leave your employer. Once you have left, they will no longer have access to any of your personal or investment information.

Learn more about what happens if you leave your employer.

If you want to make an additional contribution, you must inform your payroll representative of the amount that you would like to have deducted from your salary, over and above the regular contribution amount. This can be once off or as a recurring amount.

While we are not authorised to provide financial advice, we believe that independent financial advice, whether through a scheme adviser or personal adviser, plays an important role in helping:

  • Employers to decide on the most appropriate retirement savings solution for their staff
  • Employees to make the best investment decisions for their circumstances

Articles

The trick to retiring with enough

By Thandi Ngwane on 20 Jul 2017

reading time: 6 mins

We are often asked by clients and prospective clients what the magic trick is that can turn a portion of your income into a comfortable retirement. It is har...

How to save for a comfortable retirement

By Wanita Isaacs on 31 Mar 2016

reading time: 7 mins

How much is enough to save for a comfortable retirement? Wanita Isaacs unpacks the concepts of ‘enough’ and ‘comfortable’ in the context of this distant,...

Have a question? Let us help you.

Click here to view our contact us page.

The financial services, products or investments referred to on this website are not available to persons resident in jurisdictions where their availability or distribution would contravene local laws or regulations and the information on this website is not intended for use by these persons. This website is for information only and does not in any way constitute a solicitation or offer by Allan Gray Proprietary Limited or any of its associates or subsidiaries (collectively “Allan Gray”) to buy or sell any financial instruments or to provide any investment advice or service.

By selecting one of the countries below I confirm that I have read and understood the above and that:

(a) I am not a South African citizen; or 
(b) I do not reside in the Republic of South Africa; or 
(c) I am not otherwise a person to whom the communication of the information contained in this website is prohibited by the laws of my home jurisdiction; and 
(d) I am not acting for the benefit of any such persons mentioned in (a),(b) and (c) and 
(e) I confirm that any investment with Allan Gray is based on my own initiative and not due to any offer or solicitation by Allan Gray.