• Home
  • BUSINESS
  • Eight things to consider when joining your new employer’s retirement fund
Ernestu Augustus, Principal Officer at NMG Consultants and Actuaries. Photo Contributed
Ernestu Augustus, Principal Officer at NMG Consultants and Actuaries. Photo Contributed

Eight things to consider when joining your new employer’s retirement fund

Ernestu Augustus
The start of the new year marks the start of new employment opportunities for many people, with many new and exciting challenges. But one of these challenges shouldn’t be joining your new employer’s retirement fund.

1. Does your new employer offer a retirement fund?

Retirement funds are set up to help you save for your retirement. When you reach your retirement age and can’t continue working for your employer, the money that you have saved in the fund will help provide you with an income.

2. Have you received your member booklet for the fund?

Every member of a retirement fund is entitled to information about the fund. The retirement fund will provide you with a member booklet that sets out how the fund works and the benefits that you are entitled to. The booklet will explain the benefits you get when you retire or change jobs and what your family will get if you die. It should also contain information about your insurance benefits and the costs, the fund’s investments, and the costs of the investment portfolios.

3. How much do you and / or your new employer contribute to the fund?

By the time that you retire, you should have saved enough to receive an income that can replace what you have been earning to cover your ongoing living expenses. Planning for retirement isn’t only for those approaching retirement age. Preparing now – regardless of your age – can make the difference between enjoying your retirement or struggling to get by.

You can check to see if the contribution being made to your new retirement fund is enough to ensure that you will have enough income in retirement. An online calculator or financial planner can help you see what income you can expect in retirement and whether you will need to make other arrangements to save more for retirement.

4. What is the retirement age at your new employer?

The sooner you start saving for your retirement, the less you will need to save each month to reach your savings goal as you will be saving for a longer period. Also, the longer you have until you reach retirement age, the more you will be able to save and not have to use your retirement savings to generate an income.

5. Where is your retirement benefit invested?

Your contributions to your retirement fund will typically be invested in the market to give you the best possible long-term growth. Generally-speaking, the best way of earning good growth on savings over a long period of time is to invest most of your money in shares and property. Although the value of shares and property goes up and down a lot every month, when you are ready to retire one day, these investments should have grown your savings the most.

There are many factors across the world that affect the growth and value of investments in the market, especially over the short-term. However, it is critical that you keep a long-term view when thinking of your retirement savings goal.

It’s a good idea to understand your retirement fund’s investment strategy and know where your retirement benefit is being invested.

6. Does your retirement fund or employer offer group insurance benefits?

Many retirement funds and employers take out group insurance cover for members and employees. Have a look at your retirement fund’s member booklet or find out from your HR department if you have group insurance and how it’s been structured.

It's important to know the amount of cover you are entitled to. Will this be enough to settle your debts and provide your dependants with enough income if you die or if you become disabled? You may need more insurance cover in your own name if the cover through your new retirement fund or employer doesn’t meet all your needs.

7. Have you completed the Dependants and Nominees form?

The law says the trustees of the retirement fund must decide how to divide a member’s death benefit between the late member’s dependants and nominees if a fund member dies. Even if your group life cover is not through your retirement fund, your retirement savings in the fund will need to be paid out.

The trustees need to find out who the member’s dependants are and then decide how to pay the benefit fairly. The time taken to pay the death benefit can be shortened if there is a recent, up to date Dependants and Nominees form. You should list your legal dependants and people who are financially dependent on you on the form.

If your group life insurance is through your employer, it’s just as important to complete the Dependants and Nominees form to ensure that benefit is paid in line with your wishes.

8. Have you arranged online access?

Most retirement funds provide members with real-time online access to your fund credit value. The member booklet or your human resource (HR) department will be able to assist you with information on how to register for the online access. Many online portals also have information about your retirement fund stored for members to access easily.

Comments

Namibian Sun 2024-03-01

No comments have been left on this article

Please login to leave a comment

H.E. Dr Nangolo Mbumba, President of the Republic of Namibia says they will continue to pursue the second struggle of Namibia Zambian President, Hakainde Hichilema said one road will be named after the late president in Lusaka and the other road will be named after the founding president of Namibia The late President Hage Geingob’s casket was stationed at the Eternal Flame before he was taken to his final resting place The casket will of the late president was lowered with a 21 gun salute Accoutrements will be handed over to the former first lady of Monica Geingos An official luncheon by invitation is scheduled to take place at 14:00 at the State House The foreign dignataries are currently paying their last tribute to the former first lady, Monica Geingos Heroes Acre will be closed to the public, the National Council will announce once it is reopenedSerieA: Internazionale 4 vs 0 Atalanta | Sassuolo 1 vs 6 Napoli FA Cup: Liverpool 3 vs 0 Southampton | Nottingham Forest 0 vs 1 Manchester United | Wolverhampton Wanderers 1 vs 0 Brighton & Hove Albion | Chelsea 3 vs 2 Leeds United | Blackburn Rovers 1 vs 1 Newcastle United | Luton Town 2 vs 6 Manchester City | AFC Bournemouth 0 vs 1 Leicester City Katima Mulilo: 18° | 36° Rundu: 18° | 37° Eenhana: 21° | 37° Oshakati: 23° | 37° Ruacana: 20° | 36° Tsumeb: 20° | 35° Otjiwarongo: 20° | 33° Omaruru: 21° | 35° Windhoek: 19° | 30° Gobabis: 21° | 34° Henties Bay: 18° | 22° Wind speed: 18km/h, Wind direction: S, Low tide: 12:25, High tide: 06:24, Low Tide: 00:25, High tide: 18:45 Swakopmund: 17° | 18° Wind speed: 24km/h, Wind direction: SW, Low tide: 12:23, High tide: 06:22, Low Tide: 00:23, High tide: 18:43 Walvis Bay: 18° | 23° Wind speed: 32km/h, Wind direction: SW, Low tide: 12:23, High tide: 06:21, Low Tide: 00:23, High tide: 18:42 Rehoboth: 20° | 32° Mariental: 25° | 35° Keetmanshoop: 24° | 34° Aranos: 24° | 36° Lüderitz: 15° | 28° Ariamsvlei: 26° | 38° Oranjemund: 15° | 23° Luanda: 27° | 29° Gaborone: 19° | 38° Lubumbashi: 16° | 26° Mbabane: 14° | 32° Maseru: 17° | 32° Antananarivo: 17° | 22° Lilongwe: 18° | 27° Maputo: 21° | 35° Windhoek: 19° | 30° Cape Town: 19° | 23° Durban: 17° | 29° Johannesburg: 18° | 33° Dar es Salaam: 26° | 32° Lusaka: 16° | 29° Harare: 15° | 31° Currency: GBP to NAD 24.13 | EUR to NAD 20.69 | CNY to NAD 2.67 | USD to NAD 19.12 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.61 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.8 | ZWL to NAD 0.04 | BRL to NAD 3.85 | RUB to NAD 0.21 | INR to NAD 0.23 | USD to DZD 134.5 | USD to AOA 828.51 | USD to BWP 13.77 | USD to EGP 30.84 | USD to KES 145.48 | USD to NGN 1543.58 | USD to ZAR 19.11 | USD to ZMW 23.57 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 72204.56 Down -1.28% | Namibian Stock Exchange (NSX) Overall Index 1504.77 Down -1.33% | Casablanca Stock Exchange (CSE) MASI 13031.16 Down -0.78% | Egyptian Exchange (EGX) 30 Index 28964.41 Up +0.30% | Botswana Stock Exchange (BSE) DCI 9009.48 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 077.40/OZ UP +1.62% | Copper US$ 3.83/lb UP +0.29% | Zinc US$ 2 427.10/T DOWN -0.3% | Brent Crude Oil US$ 84.89/BBP UP +2.65% | Platinum US$ 881.84/OZ UP +0.34% Sport results: H.E. Dr Nangolo Mbumba, President of the Republic of Namibia says they will continue to pursue the second struggle of Namibia Zambian President, Hakainde Hichilema said one road will be named after the late president in Lusaka and the other road will be named after the founding president of Namibia The late President Hage Geingob’s casket was stationed at the Eternal Flame before he was taken to his final resting place The casket will of the late president was lowered with a 21 gun salute Accoutrements will be handed over to the former first lady of Monica Geingos An official luncheon by invitation is scheduled to take place at 14:00 at the State House The foreign dignataries are currently paying their last tribute to the former first lady, Monica Geingos Heroes Acre will be closed to the public, the National Council will announce once it is reopenedSerieA: Internazionale 4 vs 0 Atalanta | Sassuolo 1 vs 6 Napoli FA Cup: Liverpool 3 vs 0 Southampton | Nottingham Forest 0 vs 1 Manchester United | Wolverhampton Wanderers 1 vs 0 Brighton & Hove Albion | Chelsea 3 vs 2 Leeds United | Blackburn Rovers 1 vs 1 Newcastle United | Luton Town 2 vs 6 Manchester City | AFC Bournemouth 0 vs 1 Leicester City Weather: Katima Mulilo: 18° | 36° Rundu: 18° | 37° Eenhana: 21° | 37° Oshakati: 23° | 37° Ruacana: 20° | 36° Tsumeb: 20° | 35° Otjiwarongo: 20° | 33° Omaruru: 21° | 35° Windhoek: 19° | 30° Gobabis: 21° | 34° Henties Bay: 18° | 22° Wind speed: 18km/h, Wind direction: S, Low tide: 12:25, High tide: 06:24, Low Tide: 00:25, High tide: 18:45 Swakopmund: 17° | 18° Wind speed: 24km/h, Wind direction: SW, Low tide: 12:23, High tide: 06:22, Low Tide: 00:23, High tide: 18:43 Walvis Bay: 18° | 23° Wind speed: 32km/h, Wind direction: SW, Low tide: 12:23, High tide: 06:21, Low Tide: 00:23, High tide: 18:42 Rehoboth: 20° | 32° Mariental: 25° | 35° Keetmanshoop: 24° | 34° Aranos: 24° | 36° Lüderitz: 15° | 28° Ariamsvlei: 26° | 38° Oranjemund: 15° | 23° Luanda: 27° | 29° Gaborone: 19° | 38° Lubumbashi: 16° | 26° Mbabane: 14° | 32° Maseru: 17° | 32° Antananarivo: 17° | 22° Lilongwe: 18° | 27° Maputo: 21° | 35° Windhoek: 19° | 30° Cape Town: 19° | 23° Durban: 17° | 29° Johannesburg: 18° | 33° Dar es Salaam: 26° | 32° Lusaka: 16° | 29° Harare: 15° | 31° Economic Indicators: Currency: GBP to NAD 24.13 | EUR to NAD 20.69 | CNY to NAD 2.67 | USD to NAD 19.12 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.61 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.8 | ZWL to NAD 0.04 | BRL to NAD 3.85 | RUB to NAD 0.21 | INR to NAD 0.23 | USD to DZD 134.5 | USD to AOA 828.51 | USD to BWP 13.77 | USD to EGP 30.84 | USD to KES 145.48 | USD to NGN 1543.58 | USD to ZAR 19.11 | USD to ZMW 23.57 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 72204.56 Down -1.28% | Namibian Stock Exchange (NSX) Overall Index 1504.77 Down -1.33% | Casablanca Stock Exchange (CSE) MASI 13031.16 Down -0.78% | Egyptian Exchange (EGX) 30 Index 28964.41 Up +0.30% | Botswana Stock Exchange (BSE) DCI 9009.48 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 077.40/OZ UP +1.62% | Copper US$ 3.83/lb UP +0.29% | Zinc US$ 2 427.10/T DOWN -0.3% | Brent Crude Oil US$ 84.89/BBP UP +2.65% | Platinum US$ 881.84/OZ UP +0.34%