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Lifestage: A Seamless Transition

Saving for retirement involves some of the biggest decisions members will ever have to make in their lifetime.

Sanlam Lifestage provides members with a holistic investment solution that remains suitable throughout their retirement journey, to ensure a smooth transition from employment to retirement. Placing emphasis on long-term capital growth, Sanlam Lifestage initially provides a growth-focused accumulation portfolio.

What is a Lifestage Approach?

Saving for retirement involves some of the biggest decisions members will ever have to make in their lifetime. However very few realise how great an impact their decisions of today will have on their ability to retire comfortably.

Generally speaking, most people don’t take the time to ensure that they make the right decisions at the right stages of their lives. By the time they realise the importance of investing sensibly for retirement, it is often too late.

In terms of the Sanlam Lifestage approach:

  • The member’s savings are initially invested in a portfolio that places emphasis on long-term capital growth, with some tolerance for short-term market volatility.
  • As retirement approaches, the member’s savings are automatically switched to a preservation portfolio, which protects against the specific risks of purchasing an annuity.

Key Facts about Sanlam Lifestage

  • Sanlam Lifestage provides members with a holistic investment solution.
  • Initially providing a growth-focused accumulation portfolio, the investment adapts to suit the different stages of the member’s retirement journey.
  • It supports members in their retirement planning by aligning their investments to their post-retirement income strategy.
  • Sanlam Lifestage complies with Regulation 28 of the Pension Funds Act.

Sanlam Lifestage Member Benefits

  • The member enjoys a seamless investment transition from employment right through to retirement.
  • All investment portfolios are positioned to optimise the member’s retirement outcome.
  • The member isn’t required to make any complicated investment decisions along the way.

How does Sanlam Lifestage Work?

When a member is still more than six years away from their normal retirement or planned retirement age, their funds are invested in the Sanlam Lifestage Accumulation Portfolio, which aims to achieve capital growth.

Once the member is six years from retirement, they are gradually switched from the Sanlam Lifestage Accumulation Portfolio to his or her selected preservation portfolio. The process involves 50 monthly switches, which is completed 22 months before retirement, when the member is fully invested in their chosen preservation portfolio.

Selecting a Preservation Portfolio

Six years before retirement, members are required to select one of the Sanlam Lifestage preservation portfolios. This is an incredibly important decision, as it impacts the member’s ability to generate post-retirement income. It’s therefore essential that members consult a licensed financial adviser at this stage of the retirement journey, in order to make an informed decision.

Exit and Retirement

  • Members are allowed to opt out of Sanlam Lifestage at any time, as per standard policy conditions.
  • At the point of retirement, members may withdraw their investment balance to invest how and where they choose, subject to the Rules of the Fund.
  • When members are within six years of their retirement age, they are allowed to switch between the three available preservation portfolios. Members must switch their full fund value and cannot switch in tranches.
  • If their retirement fund allows it, members may decide to retire before they reach the normal retirement age, as determined by their employer. In these instances, planned retirement dates are used, in the place of normal retirement ages, to determine the timing of the transitioning process.
  • Members who opt for a planned retirement age are required to inform Sanlam in advance and in writing.

Sanlam Lifestage Fees

All funds invested in Sanlam Lifestage Accumulation Portfolio are charged the highest investment management fee applicable to the first tranche of assets. Any savings in funds with assets greater than R50 million are rebated separately on a monthly basis, due to the sliding investment management fee scale.

Performance Fees

In addition to the service fee, Sanlam (including Sanlam Multi Manager International) may mandate any asset manager on a performance fee basis. This may result in additional fees, but only if the underlying Sanlam appointed asset manager outperforms their performance benchmarks. These performance fees are not included in the monthly service fee as mentioned above.

Contact Us

Danie van Zyl
Sanlam Employee Benefits Investments: Head of Guaranteed Investments
T: +27 21 950 2853
E: danie.vanzyl@sanlam.co.za

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