Staff members of school, churches and charities didn’t always get access to the same retirement benefits of big corporates – at least until now!
Introducing the Umbrella Retirement Fund from Sanlam
Employees of large companies participate in retirement funding plans that provide them with significant benefits and efficient savings since costs deducted from members' monthly contributions are very low. High numbers of employees provide large companies with leverage to negotiate better plans. On the other hand, the retirement funding providers can administer substantial funds more efficiently resulting in reduced costs and enhanced life and disability cover benefits.
Most teachers (that are not on the Government Pension Fund) and NPO staff members do not receive benefits at this level and pay far higher administrative costs which are deducted from their monthly contributions. The effect is that it significantly reduces the savings available on retirement.
Teachers and NPO employees play a vital role in our communities, yet they receive lower salaries and benefits than large company employees. WeBenefit set out to address the deficit in retirement funding benefits.
On WeBenefit’s request, Sanlam created a bespoke umbrella retirement fund for schools and NPOs, available only through WeBenefit. It gives every teacher and NPO staff member access to benefits that are typically only available to participants of sizeable corporate retirement funds.
We have seen savings estimates of between R288 per month to R755 per month from the same level of contribution in proposals presented to-date. Over 20 to 30 years, this accumulates to a hundred of thousands of Rands more funding after retirement.