Retirement Funding

Retirement Planning: Setting Up a Retirement Fund for Employees
Helping employees save for retirement is not only a key part of financial wellness but also an important way to attract and retain talent. Here's how an employer can set up an appropriate retirement fund:
  1. Understand Your Objectives
Start by defining the goals of the fund:
    • Do you want to offer basic retirement savings or a more comprehensive benefit?
    • Will the fund include risk benefits like life and disability cover?
    • The group risk policy can be owned by the company - refer to Group Risk Benefits
  1. Choose the Right Type of Fund
There are several options, including:
    • Pension Fund
    • Provident Fund
    • Umbrella Fund
  1. Determine Contribution Structure
Decide on:
    • Employer and employee contribution rates (e.g. 10% employer, 7.5% employee)
    • Whether contributions will include group risk benefits (life, disability, severe illness)
  1. Select a Reputable Provider
Partner with a licensed retirement fund administrator or investment provider that offers:
    • Transparent fees
    • Strong investment performance
    • Member communication and education tools
  1. Ensure Compliance
Work with a financial adviser to:
    • Ensure the fund complies with retirement legislation (e.g., Pension Funds Act)
    • Understand tax implications for both employer and employees
    • Register the fund with the Financial Sector Conduct Authority (FSCA) if required
  1. Communicate with Employees
Effective communication helps employees understand:
    • Their benefits
    • How to make additional voluntary contributions
    • How to access financial advice
Why Financial Advice Is Key
A qualified financial adviser:
    • Helps structure a cost-effective, tax-efficient fund
    • Ensures compliance with legislation
    • Assists in selecting the right service providers
    • Offers education and one-on-one guidance to employees
By offering a well-structured retirement fund, employers show they care about their employee’s long-term well-being—while supporting financial security and peace of mind.
    For further information and advice on this subject contact Nigel at ADVICEWORX ADVISORY.