Did you know

As a member of the LA Retirement Fund, it is important for you to know just how amazing your Fund is. Did you know that the LA Retirement Fund was originally known as the Cape Joint Pension Fund which was established in 1943! Click here to read more about our amazing story.

1. Great historical investment returns and proven retirement investment solutionsThe Fund has been outperforming its peers, net of fees, for many years. This still holds true during these tough economic times. The Fund’s life stage investment strategy matches your investment to where you are on your retirement journey. This means that when you are younger, your investment grows your savings and as you get closer to retirement, it focuses more on protecting your nest egg.
2. In-Fund Living Annuity (IFLA)As a member of the Fund, you have the option of moving a portion of or all your retirement savings into an incredibly cost-effective Living Annuity provided by the Fund when you retire. Investing in this Living Annuity is effectively the same as ‘buying’ a pension. This will allow you to continue benefiting from the consistent great investment returns.
3. Pooled Annuity Account (PAC)As a member of the Fund, you have the option of using a portion of or all your retirement savings to purchase an incredibly cost-effective single life pension or a joint life pension when you retire. It will cost you less than purchasing a pension or annuity outside the Fund. This will allow you to continue benefiting from the “economies of scale” in terms of fees.
   You may use your retirement savings to purchase a combination of both IFLA and PAC.
4. A solid and proud historyThe LA Retirement Fund has been helping members on their retirement journey since 1943.
5. Constant focus on costsThe Fund remains committed to keeping costs low and retirement savings high.
6. Excellent governanceThe LA Retirement Fund places a priority on being well-managed and keeping to the rules and laws that govern retirement funds in South Africa. This ensures that that Fund members are protected and looked after by an experienced Board of Trustees and a dedicated Principal Officer. The fund has enjoyed clean annual audits for decades.
7. Pension-backed housing loansThe Fund offers members access to a valuable pension-backed home loan scheme. This means that qualifying Fund members can get surety for a home loan from FNB of up to 65% of their member share (i.e. the total amount saved up in their Fund account).
8. A dedicated Fund CounsellorIf you need help in understanding your options while you are a member of the Fund or when you are about to retire or leave employment, for whatever reason, the Fund’s Counsellor will assist you by explaining your options and associated costs.
9. Provision of a premium quotationWe are the only Fund that offers potential members a no obligation Fund cost and a voluntary insured risk benefit monthly premium quotation to help them understand how much of their monthly contributions would go directly to retirement savings.

Does a bigger fund mean better value?

It is often assumed that a larger retirement fund automatically offers better value, but this is not always the case. The size of a fund does not determine how well investment performs or how much value it delivers to members. While larger funds may be able to spread some costs across more members, these benefits can be offset by higher overall expenses. These can include more complex administration, higher governance costs, larger infrastructure and the use of promotional items – all of which are ultimately paid for by members.

Smaller funds, by contrast, often operate with more focused and efficient structures. This can allow for tighter cost control, quicker decision-making and a more streamlined member experience. Members may also benefit from more frequent communication and easier access to information, helping them stay informed about their retirement savings. When it comes to investing, fund size can also play a role, as smaller funds are often able to act more quickly and take advantage of opportunities as they arise. This flexibility can support stronger long-term outcomes for members.

Ultimately, choosing a retirement fund should not be based on size alone. It is more important to consider factors such as investment performance, costs, flexibility, communication and the overall value provided. A well-managed fund, regardless of its size, can deliver strong results and support your financial future effectively.