5 March 2018
It is important to understand the structure of your investments when making choices about retirement savings in the aftermath of last year’s credit-rating downgrades.
Retirement annuities (RAs) are long-term investments, so it would be short-sighted to base investment decisions solely on what happened in 2017. However, SA’s credit downgrades showed once again that risk cannot be eliminated, but rather needs to be managed appropriately.
At any stage of your life, finding the ideal investment options for your retirement savings can be a daunting task, but if you’re approaching retirement it’s generally more prudent to be invested in a fund that offers stable returns. Such a fund would also protect your hard-earned retirement capital in the face of uncertain and volatile market conditions.
The Stable Bonus Fund portfolio, available in Sanlam’s Legacy product range, offers smooth and consistent returns even in adverse market conditions. Clients invested in this portfolio should realise the advantage of staying the course, especially close to retirement.
Clients with RAs invested in the Sanlam Stable Bonus Fund have received regular bonus declarations that are designed to provide smoothed returns over time and reduce investment volatility, compared to that of other pure market-linked portfolios.
Sanlam’s Stable Bonus Fund showed its worth during the 2008 global financial crisis by still declaring bonuses in adverse market conditions, giving retirement fund members peace of mind.