Saving for your retirement in our Umbrella Retirement Fund

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.

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.

There are three different options when you leave your employer:

1. You are a member in your own right, so you can remain invested, regardless of any changes to your employment status; however, you cannot continue contributing. The money you have saved will automatically remain invested so it has more time to grow until you retire.
2. You can transfer your investment to another retirement fund with Allan Gray or a different provider.
3. You can withdraw from the accessible portions of your investment, but keep in mind that withdrawals are heavily taxed and this will mean you have less money to retire with.

Use our Leaving your employer guide to learn more about the three options summarised above.

It is important to make sure that your correct contact details are loaded on your Allan Gray Online account when you leave your employer. We will contact you directly as your personal and investment information will no longer be accessible by your current employer once you have left.

When you retire you will typically need to use your retirement savings to buy a product that can pay you an income in retirement. Regulation requires all retirement funds to identify one or more income-providing options for members to consider for this purpose. The trustees of the Allan Gray retirement funds have identified the Allan Gray Living Annuity and the Just Lifetime Income Annuity, which is a guaranteed annuity, as potential options for you.

Use our retirement preparation guide to learn more about your retirement income options.

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.

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