Hi everyone,
I am starting a new job and have two options for joining a retirement scheme through my employer. Do any of you perhaps have any experience with or advice to offer on which one of these two would be the best in the long run.
I am starting a new job and have two options for joining a retirement scheme through my employer. Do any of you perhaps have any experience with or advice to offer on which one of these two would be the best in the long run.
- Employers Provident Fund – Administrated by Alexander Forbs
- Employer contributes 10% of pensionable salary + risk and administration costs (2.277% in 2023).
- Employee contributes: 7.5% or 10% of pensionable salary.
- Employee will NOT be able to change the contribution percentage, once a choice is made.
- On resignation, dismal or retrenchment, or retirement all contributions, transfers plus interest payable.
- Ill health retirement (disability): Lump sum (2x annual pensionable salary) and Pension (2% final salary x each year of service until age 65)
- Death: Lump sum (2x annual pensionable salary) and Spouse / Child Pension (1% final salary x each year of service until age 65)
- Funds at Work: Umbrella Fund administrated by Momentum
- Employer contributes 10% of pensionable salary (inclusive of risk benefit premiums, administrative costs and consulting fees).
- Employee contributes: 2.5%, 5%, 7.5% or 10% of pensionable salary.
- Employee will be able to change the contribution percentage annually in March.
- On resignation, dismal or retrenchment, or retirement full fund credit payable.
- Disability income benefit: Monthly income equal 75% of pensionable salary, payable until recovery, retirement or death. Benefit is tax free.
- Death: 3x annual salary plus full fund credit.
- Housing Loan Security: 40% of fund credit could be utilized towards a security for a housing loan.