MoneyMarketing January 2026

31 JANUARY 2026

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WHAT’S INSIDE YOUR JANUARY

THE POWER OF TAX-FREE SAVINGS ACCOUNTS

One of the simplest and most tax-efficient ways for clients to build wealth over time remains underutilised in many portfolios.

Cover story and Pg15-17

WHAT FINANCIAL ADVISERS CAN EXPECT IN 2026

It’s going to be a year shaped by renewed business confidence, shifting client expectations and a fast-moving regulatory and technological landscape.

Pg6-11

HOW TO SET FINANCIAL GOALS

Effective financial goal-setting begins with understanding a client’s life ambitions and translating them into clear, measurable and achievable long-term targets.

Pg12-14

GETTING RETIREMENT PLANNING BUY-IN

Despite retirement planning being essential for South Africans, many are still woefully underprepared. But how can FAs help to remedy this worrying situation?

Pg18-23

TACKLING TECHNOLOGY

We look at the latest news in the world of technology. Keeping informed can enhance the advisory process by streamlining administration, improving personalisation and freeing advisers.

Pg24-27

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Are South Africans maximising the TFSA opportunity 10 years on?

By Andrea Malyon MoneyMarketing Contributor

Adecade after their launch, Tax-Free Savings Accounts (TFSAs) have become a familiar part of South Africa’s investment landscape. Created to foster a culture of disciplined long-term saving, they remain one of the simplest and most powerful ways for individuals to grow wealth without the drag of tax.

Yet, despite their accessibility and advantages, many South Africans still misunderstand how TFSAs work, resulting in missed opportunities, premature withdrawals and sub-optimal investment choices. Conversations with industry leaders reveal a TFSA market that has matured considerably, but one that still relies heavily on advisers to help clients capture its full value.

A market of missed opportunities

When TFSAs were introduced in 2015, investors approached them cautiously. Today, nearly every bank, Linked Investment Service Provider (LISP), and asset manager offers TFSA solutions, and balances have increased significantly as early adopters approach a full decade of contributions.

According to Daniel van Andel, Head of IFA Proposition at Allan Gray, strong recent market returns have helped long-term TFSA investors build substantial balances, with some now exceeding R500 000 and a few even approaching R1m. “We are starting to see the positive impact of tax-free growth over longer periods,” he says. Investors who contributed consistently and stayed invested through multiple market cycles are now benefiting from compounding that has been completely shielded from tax.

Murray Anderson, Head of Retail at Prescient Investment Management, echoes this sentiment. He points to a clear behavioural shift in the market: more investors are moving away from cash-based TFSAs toward balanced funds and other growthoriented investments. “The most notable behavioural change is the shift into growth assets to maximise tax-free compounding,” he observes. Monthly debit orders (often around R3 000) have also become more common, signalling increasing commitment to longterm behaviour.

Despite these improvements, both experts agree that TFSAs remain widely misunderstood – and often misused. Short-termism, early withdrawals, and overly conservative investment allocations continue to hold investors back.

Persistent misconceptions

The single most damaging misconception is around the contribution rules. Withdrawals from a TFSA cannot be replaced. Once funds are taken out, the contribution room is permanently lost. Attempting to ‘replace’ a withdrawal later in the year can also result in accidental excess contributions and a punitive 40% penalty from SARS. “Many investors treat TFSAs like transactional accounts or short-term savings pockets,” says Anderson. “But the real value only emerges after 10 or more years, when the compounding effect accelerates.”

Another misconception is the belief that cash is a safe default inside a TFSA. While cash lowers volatility, it also severely limits long-term returns. Over a multidecade horizon, the opportunity cost is immense when compared with a diversified balanced fund or equity exposure.

A third misunderstanding relates to tax treatment. Unlike retirement funds, TFSA contributions do not reduce taxable income. “The real advantage is not the contribution – it’s the tax-free growth and tax-free withdrawals later on,” Anderson stresses.

Van Andel notes that some investors still use TFSAs for short-term goals, which tends to push them into conservative investment choices and results in premature withdrawals. This behaviour erodes the taxfree compounding runway and wastes a portion of the lifetime allowance.

A structural advantage that still goes unused

Diane Behr, Head of Operations at Foord, underscores just how advantageous TFSAs are, especially when viewed correctly. “The way to think about a TFSA is like a private pension fund,” she explains. “The structure gives you major tax advantages and encourages disciplined saving. Inside the fund you get tax-free reinvestment, and over time that makes a huge difference.”

For Behr, the biggest missed opportunity is simply that many South Africans are not using their TFSAs at all, despite their clear benefits. “One of the most important things advisers should be doing is making sure that clients use their full annual allocation every year,” she says. This extends beyond adults. Parents and grandparents can open TFSAs for children or grandchildren, giving younger generations a powerful compounding advantage from day one.

Add certainty to your client’s retirement income planning with a guaranteed annuity.

Continued from previous page

Behr also stresses that advisers must strongly discourage early withdrawals. “You don’t get the benefit back if you take money out early,” she says. The permanent loss of contribution room is often poorly understood and results in long-term damage that investors only see years later.

Her message is simple: a TFSA is one of the most advantageous savings structures available – and more people need to make use of it.

“The single most damaging misconception is around the contribution rules”

How TFSAs compare with other savings options

TFSAs are often compared with discretionary unit trusts and retirement products, but each serves a different purpose. The TFSA’s clearest advantage over discretionary investments is the total absence of tax on interest, dividends or capital gains. Over long periods, this lack of tax friction significantly boosts net returns.

Retirement funds offer compelling tax deductions on contributions and shelter investment growth from tax, but come with meaningful trade-offs. Regulation 28 limits asset allocation, access before retirement is restricted and two-thirds of the final balance must be used to purchase an annuity, where retirement income is taxable.

TFSAs, by contrast, offer complete asset flexibility, full liquidity and zero tax on growth or withdrawals. The trade-off is the contribution cap and the irreversibility of withdrawals.

For most clients, the optimal sequence remains:

Maximise the tax deductions offered by retirement funds

• Contribute the full annual TFSA allowance

• Direct further savings into discretionary investments

This layered approach ensures every available tax benefit is captured.

Product choice and the importance of staying invested

Behr notes that because TFSAs allow for taxfree distribution reinvestment, investors are generally better off holding growth-oriented funds where compounding can work hardest. “You’re better off compounding dividend income inside a TFSA,” she says. “If your intention is long-term investment, a growth fund makes sense.”

Investors are not locked into one TFSA product or provider. Transfers between providers are allowed without triggering tax,

and switching within a platform is possible. However, Behr advises that sticking with one provider is usually simpler, unless there is a clear strategic reason to move. What she discourages strongly is cashing out entirely, once again because the contribution room can never be regained.

Across the board, the experts identify similar strategies that advisers should prioritise:

• Start early and stay invested

• Automate contributions

• Prioritise growth assets

Use discretionary accounts for short-term needs

Educate clients with simple projections.

Product evolution and the future landscape

As the TFSA market matures, product design continues to evolve. Van Andel notes that asset managers are broadening their TFSA fund offerings to suit different risk profiles and long-term goals. Allan Gray’s life-policy structure also provides estate-planning advantages: proceeds can be paid directly to beneficiaries, bypassing the delays of the estate process.

Anderson sees innovation emerging in the form of all-in-one TFSA portfolios that automatically rebalance and gradually derisk, along with digital contribution-tracking tools that help investors avoid excess contributions and penalties.

Looking ahead, both Van Andel and Anderson expect possible increases to the annual or lifetime TFSA limits. This is particularly relevant for early adopters who will soon reach the R500 000 lifetime cap. The next few years will also see younger adults taking control of TFSAs opened by their parents, and more older investors drawing down from mature accounts to fund education, retirement income or other long-term goals.

Foundations built, but much work remains

After 10 years, TFSAs have unquestionably met their objective of encouraging longterm saving. Investors who have contributed consistently and stayed invested now have meaningful tax-free wealth to show for it. Yet the full potential of TFSAs remains underutilised. Misconceptions, premature withdrawals, and conservative allocations continue to diminish outcomes.

Here, advisers have enormous influence. As Behr emphasises, advisers should aim for two things above all: get clients invested in TFSAs and keep them invested. When used properly, TFSAs offer one of the most powerful compounding opportunities available to South Africans. The structure is sound, the benefits are proven, and the opportunity remains underused.

ED'S LETTER

As we step into 2026, it’s refreshing, at last, to do so on firmer ground. After several years defined by volatility, uncertainty and subdued sentiment, South Africa closed out 2025 with a welcome shift in tone. The Business Confidence Index moved upward by five points, placing it three points above its long-term average. It suggests something invaluable: renewed optimism, and the sense that momentum may finally be turning in our favour.

In this issue, we look at what 2026 may hold, drawing on expert forecasts to give you a grounded sense of the environment in which you’ll be advising, planning and investing.

From economic projections to regulatory expectations, our aim is to help you start the year with clarity rather than conjecture.

We also dig into one of January’s most important advisory conversations, which is helping clients set meaningful, achievable financial goals; and with tax-free savings once again top of mind early in the year, we explore how to maximise the benefit of these products.

Retirement also features prominently this month, particularly relevant as South Africa continues to refine its broader retirement reform landscape.

And of course, no discussion about the future of financial advice would be complete without touching on technology. Artificial intelligence is reshaping the industry, but the real differentiator lies not in having access to AI, but in knowing how to use it responsibly. On behalf of the entire MoneyMarketing team, we wish you a prosperous and productive New Year. Stay financially savvy,

Sandy Welch Editor, MoneyMarketing

Note: If you subscribe to our MoneyMarketing newsletter, see QR code on the cover, you will receive a special discount off a News24 or Netwerk24 subscription*.   *Offer available to new subscribers only.

With stronger education, more consistent advice and better long-term discipline, TFSAs can continue to transform the financial futures of South

Nicola Langridge Wealth Manager at Private Client Holdings

The FPI 2025 Financial Planner of the Year, Nicola Langridge, shares some insights from her journey into finance.

Why did you become a wealth manager – was it something you always wanted to do?

I did not even consider a career in wealth management when I was in high school. I grew up in a medical- and wellness-focused family, my plan was to become a doctor, and I spent two years studying Chiropractic. However, I soon realised that it was not my passion. I decided to start a wellness business, which led to me registering for a Business Science Degree in Finance at UCT. It was there that my love for finance was sparked. A few years later, a financial planner introduced me to the world of financial planning and showed me how my love for holistic wellness could be applied to financial wellness.

What was your first meaningful successful investment?

My first two meaningful investments after university were the creation of my emergency fund and my retirement fund, both of which I set up as soon as I started working. Saving for retirement as early as possible is vital, even if you can only contribute a small amount at the outset. I now see too many clients that start saving later in life and have to either catch up in their 50s or work much later than they originally planned.

What have been your best and worst financial decisions?

My worst financial decision was to put off buying a primary residence for a long time. I think buying a small property at a young age would have been a smart move. A good financial decision was to start tax-free savings accounts for each of my kids at their births, so that I know there will be enough saved for their university education.

What keeps you up at night in terms of the economy?

I sleep well because I know that the economy moves in cycles. I think I am more concerned with what keeps my clients up at night, as there is so much fake news out there that can really scare and confuse them. Trump's antics are detrimental to anyone's sleep.

“The best investment in any economy is a well-diversified one”

What makes a good investment in the current environment?

The best investment in any economy is a welldiversified one. At Private Client Holdings, we follow a goals-based wealth management process, which means my clients set clear goals that they want to achieve, and we structure their investments to best achieve each of those goals. We review progress regularly and update as required. All investments are part of our Family Office approach to wealth management, which means that all investments form part of a holistic wealth management plan.

What expectations do you have for 2026?

As the 2025 / 2026 FPI Financial Planner of the Year and as a new ambassador for the FPI, I will strive to continue to nurture my clients’ wealth. I hope to provide great financial educational content to a much wider audience across various channels, and to have the platform to encourage more young professionals to join our profession.

EARN YOUR CPD POINTS

What are some of the best books on finance/investing you have ever read, and why would you recommend them?

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel is a great book for both advisers and clients.

The FPI recognises the quality of the content of MoneyMarketing’s January 2026 issue and would like to reward its professional members with 2 verifiable CPD points/ hours for reading the publication and gaining knowledge on relevant topics. For more information, visit our website at www.moneymarketing.co.za

By Francois du Toit CFP® PROpulsion

CAre you building a practice or business?

an you step away from your firm for three weeks without checking in? If the answer makes you uncomfortable, you are running a practice that depends on you. If you could disappear and the business would continue smoothly, you have built something more valuable.

The difference matters. Understanding the value of every aspect of an adviser’s practice is crucial for improving long-term growth and unlocking revenue opportunities. Practices depend on their founder’s struggle to attract buyers. Businesses built with systems and teams command premium valuations.

Here are five strategic decisions that determine whether you build for cashflow today or business value tomorrow.

Diagnose your revenue model

Does your income come from transactions or trust? Product-focused firms earn when they sell. Adviceled businesses earn recurring revenue from ongoing relationships.

According to the 2024 Momentum Financial Advice Report, only 9% of South African households use professional financial advisers, yet the average investment amount for households with an adviser is significantly larger than those without.

Ask yourself: if no new products were sold this quarter, would your revenue collapse or hold steady? Recurring revenue creates predictable cashflow and attracts higher valuations. The shift from product sales to advice fees signals a business model built on relationships rather than transactions.

Decide between transactions and relationships

Transaction-focused practices chase the next sale. Relationship-driven businesses deepen existing connections. According to analysis from Thomson Reuters Research Institute’s Cost of Compliance Report 2022, independent intermediaries in South Africa spend only 35% of their time interacting with clients. This reality makes every client interaction more valuable.

Research shows that new adviser failure rates have reached 72% within the first year, yet established practices have opportunities to scale. The relationship model scales differently. You need systems, not just stamina.

A recent comment by the chief executive of a large South African insurer revealed that the country needs another 4 000 financial advisers – highlighting the opportunity for well-positioned firms.

Your value must be obvious

Can your clients explain what makes you worth the fee? If they cannot articulate your value, you have a pricing problem waiting to happen.

then find tools that support them. According to industry analysis, advisers who have the best control of their data will be the winners, with artificial intelligence serving as a mechanism to extract data more efficiently.

Strip away the noise

What really matters in your business? Most firms chase activity instead of creating impact. Choose three metrics: recurring revenue growth, client retention rate, and profit per client. Ignore vanity metrics unless they connect directly to profitability.

“Advice-led businesses earn recurring revenue from ongoing relationships”

According to a 2024 report by Old Mutual’s Savings and Investment Monitor, more than 70% of South African households cannot cover an unexpected expense equal to one month’s income. Yet, many advisers struggle to communicate their value clearly. Make your value visible through three actions. First, show clients what they gain beyond investment returns: tax strategies, estate plans, decisions simplified. Second, create a one-page annual summary listing every service delivered. Third, ask clients to describe your value in their own words, then use that language.

Research by PwC South Africa reveals that women are 30% less likely to work with financial advisers, despite often needing more robust retirement strategies. This gap represents both a communication failure and an opportunity.

Technology: Enhancing without replacing

Research shows that advisers who outsource business functions to specialised providers promote efficiency and scalability. Start with your strategy and process,

According to Ninety One’s tracking of 35 independent wealth advisory firms in South Africa, well-established advice firms focus on what they can control: highquality engagements with clients seeking guidance. Block two hours each month to review these numbers with your team. If a metric is not improving, change one thing and measure again.

Ask yourself two questions:

• What small shifts could you make this year that would create long-term change? Perhaps moving one service from reactive to proactive, or training one team member to handle reviews independently.

• What would happen if you stayed the same for five years? Research shows that 66% of heirs of older South African clients are likely to leave the country. Inaction is a decision with consequences.

Building a business instead of a practice requires intentional choices about revenue models, relationships, value communication, technology, and focus. Make those choices by design, not by default. The smallest viable next step: pick one of the five decisions above and review it with your team this quarter. Measure where you are, decide where you want to be, and document three actions that will close the gap.

Stay curious!

Get ready for a noisy year!

In 2026, rewards will come to those who are willing to rebalance boldly but thoughtfully; who diversify globally without abandoning local conviction; and who help clients embrace the entrepreneurial mindset required to navigate the next chapter in global investing. That was the overall message from Morningstar’s Outlook for 2026, presented by Morningstar’s Global Chief Research and Investment Officer, Dan Kemp.

A different kind of outlook

Kemp was quick to make one thing clear: Forecasting with confidence is not only misleading; it actively harms clients. Predictions create expectations and expectations create surprise – a powerful behavioural trigger that prompts investors to freeze, fight or flee. Freezing is manageable. Fighting, trying to trade one’s way out of volatility, rarely works. Fleeing can destroy long-term outcomes.

Staying invested, no matter what

The behavioural research behind the Outlook reinforces three adviser imperatives for 2026: Prepare clients for volatility before it arrives, arm them with clear information, and prioritise education over reaction. When clients expect turbulence, they’re less likely to be shocked by it. When they understand the forces shaping markets, they’re less likely to abandon a well-built plan. And when portfolios are constructed for robustness, investors are better equipped to stay invested and seize opportunity. The year ahead will be noisy. But advisers who anchor clients will give them the best possible chance of reaching their goals.

The AI arms race and the problem of concentration

The global AI narrative has lifted the ‘Magnificent Seven’ to near-mythical status, and with it, investor exposure to a narrow segment of the US market. While concentration alone doesn’t guarantee a correction, it does erode diversification benefits and leaves portfolios vulnerable to sudden sentiment shifts.

It’s worth noting that US small caps remain materially undervalued compared to their large-cap peers, after years of underperformance. Likewise, US healthcare presents attractive entry points in an otherwise fully valued US sector landscape. For clients reluctant to step away from

the familiar comfort of US equities, these represent credible pathways to rebalance without abandoning the market entirely.

The case for looking offshore

Much of the real excitement, however, lies outside the US. Emerging markets have delivered strongly, supported by both local performance and a softer dollar. Markets such as Brazil, Mexico and South Korea stand out for their mix of strong economic momentum, structural reform and valuations that still imply upside. China, despite perennial debate, remains a meaningful opportunity set, particularly for tech exposure that is both broad and high quality.

For South African advisers, the offshore diversification message remains essential. But 2026 will require more nuance: not all emerging markets are created equal, and not every undervalued market is undervalued for the right reasons. Country selection matters more than ever.

“When clients expect turbulence, they’re less likely to be shocked by it”

The dollar will be discounted, but not cheap

One of the trickiest dynamics clients will be grappling with heading into 2026 is the behaviour of the US dollar. After years of dominance, 2025 delivered an uncomfortable reversal. But a weaker dollar doesn’t automatically signal a collapse in reservecurrency status.

The more grounded interpretation is that the dollar is cheaper than it was, but it’s still overvalued. Tools like the Big Mac Index still suggest the rand is more than 40% undervalued relative to the dollar.

For advisers, the message is not to build narratives around the dollar’s demise, but to help clients understand:

• Why a weaker dollar impacts offshore returns

• Why speculation around gold or cryptocurrency often rides on shaky assumptions, and How to avoid overreacting to currency cycles.

Most importantly, advisers should caution against DIY currency hedging. Correct hedging depends on client perspective, asset mix, base currency and long-term investment goals, which are variables too complex to manage in isolation.

South Africa, the quiet outperformer

Amid the global narrative, South Africa delivered a surprisingly strong US dollar performance in 2025, largely unnoticed because the country represents just 3% of emerging market indices. It did so without foreign investor inflows, which have continued to trend negative. This means that local returns have been driven by fundamentals, not sentiment.

Much of the JSE’s strength came from a concentrated group of precious-metal miners benefiting from elevated gold and platinum prices. But looking ahead to 2026, the sector-level picture tells a more interesting story:

• Resources as a broad category now screen as relatively low-return prospects, especially gold and platinum miners, which appear fully priced

Global diversified miners listed locally, including BHP, Anglo American and Glencore, still show reasonable valuationbased upside

South African financials offer the most compelling real return expectations for rand-based investors. The major banks remain well capitalised, prudently managed, and benefit from valuations that still sit at attractive levels despite economic headwinds.

For local, rand-based investors, SA equities remain priced to deliver higher expected returns than developed and emerging market peers. For international investors, however, South Africa is a tougher sell. The benefits of cheap valuations are offset by liquidity constraints, currency volatility and opportunity costs versus larger emerging markets offering broader exposure.

Guiding clients through the transition

As 2026 unfolds, advisers will play a critical role in helping clients move from passive participation to intentional positioning. The transition resembles a shift from corporate security to entrepreneurial freedom. Clients can’t rely on one dominant market (the US) to do the heavy lifting

Finally, questions around the dollar, US debt and gold serve as a reminder that markets often price in risks long before they appear in the headlines. For advisers, the role in 2026 is clear. Guide your clients away from speculation and toward durable, evidence-based strategy.

Why 2026 could be the year Africa rewrites its investment story

Speaking at the SuperReturn Africa Conference, John McDermott, Chief Africa Correspondent for The Economist, examined what experts are predicting from Africa for the coming year and how inflation, currency and interest rate trends are shaping investment decisions.

For years, Africa’s economic narrative has been shaped by volatility, uneven reforms and political fragility. Yet beneath the noise, the continent’s fundamentals have been shifting, quietly at first, then unmistakably in 2024 and 2025. As we move toward 2026, investors with an eye on long-term opportunity may find that Africa is no longer a peripheral consideration, but a region entering a new phase of geopolitical relevance and economic resilience.

A front-row seat to multipolar geopolitics

Africa today offers perhaps the clearest view of the world’s accelerating multipolarity. It is the place where East and West, and increasingly the ‘Rest’, intersect most visibly. A striking representation of this is a multicoloured map of trade, investment and scientific flows into Africa. The picture is unmistakable: Africa trades more with China but finances more with the West, and across nearly every category, the diversity of partners has surged in just two decades. Multipolarity brings risk but also diversification, competition and interest from new players.

US–China rivalry brings risk and opportunity

In previous cycles, African fortunes swung on the dominance of a single big partner – first China in the 2000s, and then the US in earlier decades. But in today’s geopolitical shuffle, Africa is not a bystander. If anything, the return of a more transactional US foreign policy is driving fresh commercial diplomacy. Agencies like US Exim Bank and the Development Finance Corporation (DFC) are stepping up financing in strategic corridors such as Angola’s Lobito project.

China, meanwhile, has moved from the ‘1.0 era’ of large infrastructure loans to a ‘2.0 era’ rooted

For financial advisers, Africa in 2026 is not just a frontier, it is a region in transformation. Those who understand its shifting dynamics will be best placed to guide clients toward opportunities that balance risk with long-term potential.

Three forces converge next year:

1 Geopolitical competition that increases investment options, partners and financing

2 Structural economic momentum, including AfCFTA, stronger capital markets and ongoing reforms in key economies

in investment and consumer penetration. Chinese companies, from smartphone giants to solar technology firms, are expanding briskly across African markets. Exports from China to Africa have surged precisely because other regions are turning inward.

The rise of middle powers

More intriguing still is the growing influence of middle powers, including the UAE, Saudi Arabia, Qatar, Türkiye, India, Vietnam and Brazil. The UAE is now the fourth-largest investor in Africa. Türkiye is fast becoming a dominant infrastructure builder. Indian tech firms are laying digital foundations in emerging African markets. Vietnamese and Southeast Asian firms are pushing into agro-processing. Brazil’s agricultural research agency has opened new offices on the continent. This widening of partners creates competition –and competition improves financing, terms and long-term opportunities for investors.

“Africa may not yet have fully arrived, but the direction of travel is clear”

African responses are more strategic than ever Against this backdrop, African governments are not acting passively. Three responses define the current moment:

1. A strategic ‘scramble’ for US market access Initial panic following tariff threats gave way to more coordinated diplomacy. As political relationships stabilise, bilateral deals, and possibly a reworked AGOA, are again feasible.

2. Portfolio diversification

African leaders are increasingly widening their networks to include Gulf, Asian and alternative Western partners. Deals are being struck quickly, with countries like Zambia and Ethiopia successfully pulling investment from new and agile players.

3. The African Continental Free Trade Area (AfCFTA)

The AfCFTA has become the symbol of Africa’s resolve to reduce fragmentation and build resilience. Nearly every country has

3 A demographic and political push from increasingly vocal citizens demanding accountability, opportunity and growth.

ratified the agreement, and implementation momentum is building. AfCFTA has the potential to enable regional value chains, reduce commodity dependency, attract more manufacturing and investment, and create a unified market of 1.4 billion people.

This is the type of structural reform that changes long-term investment cases.

Macroeconomic resilience equals a turnaround Geopolitics sets the scene, but macroeconomics drives the investment story. Here, too, Africa is signalling a shift. According to the IMF, subSaharan Africa is set to be the fastest-growing region globally in 2026. Ten of the world’s 20 fastest-growing economies are African. Inflation is cooling, currencies are stabilising, and several capital markets have reached record highs. Portfolio flows are turning positive, partly because global reallocations away from China are creating openings that more agile African markets can capture. South Africa and Nigeria, the region’s largest economies, are finally pushing through long-awaited structural reforms. If sustained, these reforms could unlock substantial investment momentum.

Debt remains a challenge

The biggest headwind is debt. Twenty countries are in or near distress. Many governments are increasingly relying on expensive domestic borrowing, which strains banks and crowds out private investment. Without reforms in debt management, capital markets and revenue systems, growth could stagnate.

Still, advisers should recognise that Africa’s debt problem is partly a story of underinvestment. Investment as a share of GDP lags behind Asian peers, not due to lack of opportunity, but due to demographics, underdeveloped markets and risk perceptions.

Encouragingly, new research is helping close information gaps. A recent analysis of IFC private equity returns from 1961 to 2020 shows that African returns, over the long term, outperform both MSCI EM and the S&P 500. Data like this helps correct the ‘perception premium’ that inflates Africa’s cost of capital.

Schroders’ Crystal Ball 2026

As 2025 draws to a close, financial advisers are preparing clients for another year defined by complexity. Debt, artificial intelligence, geopolitics and central bank independence shaped the investment conversation this year, and according to experts at Schroders’ recent Crystal Ball 2026 briefing, the variables may shift but the uncertainty isn’t going anywhere.

The session brought together two key voices: Johanna Kyrklund, Group Chief Investment Officer, and Nils Rode, Chief Investment Officer of Schroders Capital to unpack the global landscape and identify where advisers should focus for 2026.

A new political and economic reality

Kyrklund said that while market sentiment has been surprisingly resilient, especially in the United States, the drivers behind that strength point to a deeper political and economic shift, and not just the impact of a US election cycle.

She described the last decade as a turning point away from globalisation and tight fiscal policy – which were hallmarks of the 1990s and 2000s – towards an era defined by anti-globalisation, looser budgets and higher inflationary pressures. “Nominal growth has been phenomenal in the US, and nominal growth supports corporate earnings,” she noted. This is the backdrop against which 2026 must be viewed.

Populist policies may be supporting growth for now, but advisers should remain mindful of their ultimate constraint: the bond market’s tolerance. While debt levels continue to climb, current inflation dynamics are keeping yields under control. A more dovish Federal Reserve is helping too, though Kyrklund warned that its stance may be too dovish in the long term.

Bubbles,

froth and the limits of

valuation

A major concern for investors heading into 2026 is valuation risk. Kyrklund pointed to widening signs of exuberance reminiscent of the late 1990s, though not yet at extremes.

The US equity-bond yield gap sits firmly in ‘expensive, but not bubble’ territory. Meanwhile, the outperformance of non-revenue tech companies and the rise of leveraged equity ETFs signal froth in certain parts of the market.

The takeaway? Selectivity matters more than ever. Kyrklund emphasised that while bottom-up opportunities remain, thanks to strong free cashflow in key tech names, passive exposure to mega-cap dominance is risky this late in the cycle. Active management and disciplined position sizing will be essential.

Rethinking diversification in an inflationary era

One of the most meaningful structural shifts is the changing role of fixed income. In a de-globalised, more inflation-prone world, bonds no longer reliably deliver the equity diversification investors enjoyed from 2008 to 2020. The return to a positive stock-bond correlation means that advisers should once again treat fixed income primarily as a yield generator, not a hedge.

Instead, Kyrklund recommended looking to: Gold and select commodities

Emerging markets, where more orthodox fiscal policies and attractive real yields create opportunity

• Geographic diversification, as markets such as China and European financials show renewed strength

Fixed income alternatives such as catastrophe bonds, which offer uncorrelated yield.

Another key concern is the weakening diversifying power of the US dollar. Historically, the dollar has risen when equities fall, but this year both declined together. Advisers planning global allocations should keep a close eye on Fed credibility and future inflation cycles.

Preparing for a ‘resilient first’ era

Switching to the private markets outlook, Rode emphasised the need for resilience rather than momentum-driven investing. With holding periods often extending well beyond five years, private market investors must focus on themes that endure through cyclical shocks, not just those that look attractive in a single calendar year.

Rode highlighted several important dynamics: 1. A four-year slowdown and a bottom in sight

Private markets have been cooling since 2021, with declines in fundraising, deal flow,

exits and valuations. While painful for existing allocations, this environment is creating more attractive vintage years for 2024–2026. Lower competition and healthier valuations, especially in small and mid-cap buyouts, present long-term opportunities.

2. Small and mid-cap buyouts: Quiet outperformers

Contrary to assumptions that smaller companies carry higher risk, data across 25 years shows these buyouts consistently outperform large-cap strategies during crisis periods. Their lower leverage and predominantly local revenue bases shield them from global trade tensions and geopolitical volatility.

3. Continuation funds are here to stay

Continuation vehicles, where an asset remains with the same private equity sponsor for an extended period, are growing structurally, not just cyclically. They offer lower fees, fewer surprises, and faster liquidity, which make them a compelling tool for advisers seeking stability in private equity exposure.

4. Diversified private debt remains attractive

Private debt has weathered the slowdown better than any other private market segment, thanks to floating-rate structures. Rode highlighted: Insurance-linked securities (cat bonds) for uncorrelated returns

• Real estate and infrastructure debt, supported by strong collateral and defensive characteristics

Opportunistic income strategies able to move across asset classes.

5. Real estate and renewables: A reset, then recovery

Real estate has seen the steepest correction, especially office assets in the US and UK, but Rode believes a floor is forming. Higher construction costs and rental inflation are improving fundamentals for new deployments. Renewable infrastructure, especially in Europe and Asia, remains supported by strong economic and political tailwinds.

What’s under the radar for 2026?

Asked where opportunities may be overlooked today, both CIOs pointed to areas beyond the dominant US tech narrative: International equities such as European banks, China’s growing tech ecosystem, and value styles outside the US.

Small and mid-market private equity

Early-stage innovation globally, with India standing out as the least-correlated major market.

Rode underscored a subtle but crucial trend in private markets: while quarterly data suggested an uptick in investment activity, the reality for most of the market painted a different picture. This apparent

“One of the most meaningful structural shifts is the changing role of fixed income”

increase was largely skewed by a handful of very large transactions, masking a broader slowdown affecting most of the private equity, venture capital and innovation deals. Rode also addressed concerns around AI-related investments, particularly in sectors like data centres and energy. He noted that while exposure exists, it is selective and spread across value chains rather than concentrated. The bulk of these investments are early-stage companies with significant growth potential, alleviating fears that a late-cycle correction in AI could ripple broadly across private markets. According to Rode, these strategic investments are grounded in fundamental growth rather than speculative momentum, providing resilience in an otherwise highvolatility environment.

The situation in Europe

When discussing opportunities in European equities, Kyrklund highlighted European banks and mid-cap value stocks as areas of potential outperformance, contrasting the US where mega-cap technology dominates. Rode complemented this perspective, pointing to healthcare, particularly biotech, as a contrarian opportunity, noting that the sector had cooled after peaking in 2021. He stressed that private market investors should consider these underappreciated segments for resilient, long-term growth, rather than chasing the headline-grabbing sectors.

Absolute return strategies and hedge funds also drew attention. Kyrklund observed that with yields in traditional assets declining and gold becoming more correlated with equities, liquid alternatives and absolute return vehicles now present a compelling avenue for diversification. Investors should focus on liquid, transparent exposures to manage risk effectively while capturing returns from less conventional strategies.

Energy transition and infrastructure investments, particularly in Europe and Asia, continue to offer strong entry points despite fundraising slowdowns. Long-term demand, political support, and attractive valuations make these investments appealing for patient capital. Similarly, semi-liquid structures and continuation funds are expanding access to private markets for a broader investor base, allowing individuals to participate in highquality, resilient assets while accommodating liquidity needs.

What financial advisers should keep in mind

The outlook for 2026 is one of paradox: a benign macroeconomic backdrop paired with late-cycle valuations and rising geopolitical risk. The consensus from Schroders’ leadership is clear: Stay invested, but be selective. Manage exposure to mega-cap tech actively. Prioritise resilience, diversification and real sources of yield. Look beyond the US because opportunity is broader than the headlines suggest.

By Sean Hanlon Executive Director at BrightRock

TCrafting clientcentric insurance for the year ahead

he core of insurance has always been protection, but the very definition of what constitutes effective protection is undergoing a seismic shift. As we look into 2026, our industry stands at a pivotal intersection: static, one-size-fits-all policies are rapidly becoming relics of the past. Today’s consumers, navigating an increasingly complex and unpredictable world, demand solutions that are dynamic and can change with them as their lives change.

Here are some essential insights to consider when getting your clients cover.

1. Insurance that evolves with life

Static, one-size-fits-all insurance is becoming obsolete. Consumers are demanding products that adapt dynamically to their evolving circumstances – not policies that remain frozen in time while their lives move forward. The growing demand for innovative, flexible and highly customisable insurance solutions is driven by several shifts in the life insurance landscape.

South Africa’s insurance market is one of the most competitive globally, prompting insurers to differentiate through customer-centric product design. At the same time, digital transformation and the expansion of new distribution channels have raised consumer expectations for convenience, adaptability and seamless service. The industry’s increasing focus on transparency, fair treatment and simplified underwriting has also encouraged the development of products that better match people’s evolving financial needs. Together, these trends underscore a clear market appetite for more personalised and adaptable insurance offerings. This is where needs-matched cover, such as BrightRock’s offering, becomes especially relevant.

2. Income protection is at the heart of financial protection

With inflationary pressures and economic volatility affecting households across Africa, ensuring a steady income flow during times of illness and injury is paramount. Futurefocused insurers can track an individual’s earnings trajectory, rather than static lump-sum benefits. Tracking the number of pay cheques a client has left to earn until retirement ensures that their cover precisely matches their needs, is more affordable, and eliminates unnecessary waste.

3. AI, data and technology

Just as in other industries, we expect to see new applications for AI emerge over the next year. Many industry commentators fear that AI may replace human connection, but studies show that consumers increasingly value personal interactions and expert advice, especially in areas of complexity. The true power of digital technologies is in supporting, not replacing, human connection. In this context, advisers will look to personalised product technologies that integrate the advice process with the product solution, freeing them up to focus on what really matters: understanding their clients’ needs and helping them make informed risk protection choices that can meet those needs in the long term.

Three things for advisers to note about insurance of the future

1 Protection must be personal and it must be adaptable

Clients no longer accept static, generic cover. The future of protection is dynamic, needs-matched and flexible enough to shift with life’s milestones. Advisers who prioritise adaptable solutions, rather than traditional one-size-fits-all policies, will be better positioned to provide meaningful, futureproof advice.

4. Affordability through intelligent precision

The industry’s biggest challenge remains accessibility. With household budgets under pressure, traditional cover structures often leave clients either underinsured or overpaying. The future lies in precisionbased affordability, dynamically adjusting premiums and benefits to ensure clients pay only for what they need, when they need it. BrightRock’s needs-matched model embodies this thinking. By aligning cover to financial obligations month-by-month, clients can maintain meaningful protection without the burden of excess cost. This creates a smarter, more sustainable insurance ecosystem that supports retention and longterm client value.

5. The adviser of the future

The role of the financial adviser is being reimagined. Automation can quote a premium, but it can’t interpret human emotion or anticipate how life events ripple through a family’s finances. The adviser of 2026 is no longer a salesperson, they’re a life-stage strategist. They translate complex financial data into decisions that protect futures. As cover becomes more dynamic and client-centric, advisers will be central to ensuring it remains relevant and human.

6. The pillars of client-centric cover

To truly deliver client-centric protection, insurers and advisers must build on three core pillars: Efficiency, ensuring clients only pay for the precise cover they need, exactly when they

2

Income protection is the foundation of real financial security

In an environment of rising costs and economic uncertainty, safeguarding a client’s income matters more than ever. Advisers should focus on solutions that track an individual’s earning journey to retirement, ensuring cover aligns precisely with real needs, avoids waste, and provides genuine financial resilience.

3

Technology enhances advice but human insight remains irreplaceable

AI and digital tools can streamline processes and personalise product design, but they cannot replace empathy, context or judgment. The adviser of the future uses technology to deepen the human connection, enabling smarter conversations, more precise cover and better long-term outcomes for clients.

need it, thereby maximising premium value and fostering trust.

Flexibility, meaning the cover must be capable of easily changing – by both client and adviser – as their lives change; this is paramount for maintaining relevance. And finally, certainty, providing clients with absolute clarity on what is covered and when, as this transparency is crucial for building confidence and alleviating the anxiety often linked with complex financial products.

By Herman van Papendorp Head of Asset Allocation at Momentum Investments Group

2Markets will continue to rewrite the rulebook

025 was the year of Trump for global financial markets. The unpredictability of Trump’s policy pronouncements since his inauguration on 20 January last year has forced global financial markets to continually re-evaluate the basic principles underlying investment thinking and portfolio positioning. What market participants have come to realise is that in the Trump era, nothing is sacrosanct or safe – not policy, not institutions and certainly not historical alliances.

Trump’s unpredictable policies reshape global markets

It is quite ironic (and probably an unintended consequence) that Trump’s alienation of the rest of the world has caused the rest of the world to move closer together in a unified play on the adage that ‘the enemy of my enemy is my friend’. Trump 2.0 has turned out to be Trump 1.0 on steroids. The 2017-2021 period of Trump’s first term was characterised by Trump’s regular postings on then Twitter (now X) that often changed the investment world from the previous status quo. In his second term, Trump has been even more aggressive and more frequent in his utterances about market-moving issues on his own Truth Social media platform.

Record-breaking executive order activity

Trump has also so far in his second term been the second-most active ever of all US presidents with the issuance of executive orders, with his order frequency outpacing those of Hoover (who presided during the early part of the Great Depression, 1929-’33) and only second to FD Roosevelt (whose terms included the latter part of the Great Depression as well as World War II, 1933-’45).

In our view, the combination of anticipated rising US inflation, forthcoming fiscal stimulus measures, and a potential threat to US central bank independence from the Trump administration to force policy rates lower are all risks to the US bond market, while at the very least less negative for US equities than bonds, if not outright equities positive.

“EM earnings revisions have turned positive”

What is expected from the equity market

Research by Morgan Stanley shows that the US equity market historically performed best when US policy rates were in a falling cycle. This is expected to continue in 2026, even though the magnitude of future Fed rate cuts is heavily debated. In addition, analysis by Citi illustrates that when US rate cuts took place during softlanding economic growth periods historically, global equity returns were particularly strong, pointing to potential further equity upside from current levels. Although equity markets in Europe, Japan and EM outpaced the US historically in these soft-landing rate-cutting periods, we think the rest of the world outperformance of the US may be less pronounced this time due to the current large weighting of technology in the US equity market, and with technology historically being a large outperforming sector in softlanding rate-cut cycles.

The threats that remain

Anticipated rising United States (US) inflation, fiscal stimulus measures, Federal Reserve (Fed) rate cuts amid a potential threat to Fed independence, together with higher and more synchronised global regional profit growth in 2026, fundamentally favour global equities over

solid in a soft-landing scenario. However, the magnitude of future US equity returns should be constrained by high valuations that have little room for disappointment.

Key issues to note

In terms of the impact of all of this on South Africa, the following points are salient:

A weaker US dollar, driven by structural and cyclical factors, will likely have positive implications for emerging market (EM) equities relative to developed market (DM) equities, as has been the case in the past. In addition, EM earnings revisions have turned positive, while EM has also become an attractive way to access the global artificial intelligence (AI) investment theme.

We are cautiously confident about the prospective trajectory of the South African (SA) economy and local asset class returns in 2026, with further local rate cuts and some growth acceleration expected from a low base. SA’s recent strong equity performance may help rekindle long-dormant foreign investor interest in SA equities, as has already been the case for SA bonds. An increased global allocation to EM equities could simultaneously result in material global inflows supporting SA equities, particularly given that SA is a high-beta play on EM equities. Due to strong profit momentum, SA equities remain attractively valued against global peers and its own history.

Although the SA nominal bond spread with the US has fallen to levels last seen in 2013, the real ex-ante SA bond yield is still above its historical average, providing an underpin for the asset class. While the absolute level of SA inflationlinked bond (ILB) yields is still high, the absence of inflationary pressures in the coming year points to a lack of fundamental support for ILBs. The combination of moderately rising inflation in 2025 and 150 basis points of SA Reserve Bank (SARB) rate cuts since September 2024 has pushed available real SA cash rates down towards its long-term average, making local cash an inferior investment alternative among the SA asset classes, in our view. In contrast, SA listed property fundamentals continue to improve, with reported net operating income growth the strongest since 2018, and the earnings recovery guided to continue in 2026.

Risks to global markets would be: a deterioration in the AI theme, less Fed rate cuts than expected, a hard landing for the US economy, or geopolitical risk escalation. The main local risk would be the disintegration of the coalition Government of National Unity.

By Carla de Waal Head: Multi Management & Manager Selection at FNB Wealth & Investments

DBuilding winning portfolios for real-world markets

elivering consistent, risk-adjusted returns that meet clients’ medium to longterm goals remains the fundamental challenge for any investment manager. This has nothing to do with prediction, but everything to do with process. That’s why we’ve built a disciplined investment approach focused on delivering specific outcomes, supported by a robust multi-manager framework – a structure that combines the expertise of multiple specialist managers under one coordinated strategy to provide clarity, confidence and stability for clients in an uncertain world.

This approach has not only built our reputation for consistency and innovation, but also for helping our clients navigate uncertainty and reach their goals. Our success is shown not only by strong fund performance since inception, but also by the careful, risk-aware way we achieved it – delivering superior risk-adjusted returns that have earned industry recognition.

As Renzi Thirumalai, CIO at FNB Wealth & Investments, explains: “These achievements reflect the disciplined process behind our investment philosophy. Our focus has always been on delivering consistent, risk-adjusted returns through a robust, outcomes-based approach. This disciplined framework gives clients confidence that their longterm objectives remain on track, even in uncertain markets.”

Furthermore, these wins reflect not only disciplined process but also the collaborative strength of FNB, RMB and Ashburton, combined with our multi-management expertise. This means our clients benefit from top skills and experience in multiple investment disciplines, where each selected team is an expert in their field – yet, combining these is where the total becomes far more than the sum of the parts.

Beyond managing portfolios, our role is to help clients stay invested and focused on long-term goals – particularly when behavioural biases threaten to derail outcomes. Overconfidence, for example, can lead investors to believe they can time markets, herding and recency bias can drive them to chase what’s ‘hot’ now, and loss aversion causes panic selling during downturns. These emotional responses carry real costs.

For example, a R1 000 investment five years ago in the FNB Growth Fund of Funds would now be worth just over

R2 000 (after fees, before tax). However, if you exited during the Covid-19 crash and stayed in cash, even with recent high interest rates, your investment would only have grown to slightly above R1 300. This illustrates why staying invested matters, once you have selected the appropriate fund for your investment needs.

Our task is to build solutions that can help clients overcome such behavioural biases to become better investors. This is why our investment process is built on three interconnected principles designed to mitigate these risks.

The first step is strategic asset allocation – the long-term foundation that helps us stay on track to meet return objectives. This provides stability, but because markets change, we also use tactical asset allocation. This lets us adjust positions when we see opportunities, adding flexibility without losing sight of our long-term goals.

However, these decisions are only as effective as the managers we choose to execute them. Effective manager selection represents perhaps the most critical component of our process, requiring a disciplined framework that screens, analyses and blends managers across different styles, market caps and asset classes.

Our multi-management approach offers key benefits: true diversification across investment styles, portfolios built to withstand different market conditions, flexibility to adapt when markets change, and strong governance

“Our role is to help clients stay invested and focused on long-term goals”

through our investment committee and oversight process.

For our award-winning FNB Horizon funds, we also draw on the collective investment capabilities of FNB, RMB and Ashburton, allowing our FNB Multi Management team access to world-class, institutional-grade resources and expertise. Our investment committee brings together deep experience across asset allocation, quantitative research and portfolio management, with team members whose combined experience spans multiple market cycles. Having navigated previous periods of market stress, from financial crises to bear markets, this experience is particularly valuable when disciplined adherence to process becomes most critical. It’s precisely during these challenging periods that the benefit of a structured, repeatable process becomes evident – when emotion might otherwise drive individual decisions, our framework keeps portfolios aligned with longterm objectives.

Of course, the proof of any strategy ultimately lies in its successful execution, and FNB Multi Management has this proof. The FNB Multi Manager Equity Fund has delivered strong performance relative to peers in the ASISA South African Equity General category, while the FNB Multi Manager Balanced Fund has delivered competitive returns in the ASISA SA Multi Asset High Equity space.

Our Horizon series of funds has met or exceeded return objectives across different risk profiles and over their intended minimum investment horizons. These outcomes don’t come from market timing or concentrated bets; they’re the result of an ability to stick to the same proven, disciplined process.

For financial advisers and intermediaries, this provides practical value. We do the heavy investment lifting, allowing advisers to focus on client relationships and financial planning. In a world of noise, uncertainty and complexity, this provides the clarity, confidence and stability that their clients need.

There is no doubt that market environments will continue to change in the years to come, presenting both opportunities and challenges. But what will remain constant is the need for disciplined investment management, grounded in sound process, and delivered consistently irrespective of market conditions.

That remains our strength and our unwavering focus.

By Kobus Kleyn Liberty Financial Adviser and Certified Financial Planner

AAn RA is the very foundation of advice

s a foundation for all good financial planning for every new client, whatever their age or ambitions, they should be guided to a Retirement Annuity (RA). I like to think of the RA as a plan A in every case. Put a retirement plan in place first, and it contributes to a client’s value and remains as a failsafe should other things not work out as desired in their life. There have been many discussions around seeking alternatives to RAs, because of a belief that these savings vehicles are old-fashioned or that they take time to grow, or perhaps because people apparently can’t access their money during the savings period.

Many advisers have likely encountered clients who have toyed with the idea that their house or business, or even their investments, will be their retirement plan. This is, of course, not something any ordinary adviser would recommend.

As advisers understand too well, many people in this position find that a house can be expensive to maintain, along with monthly mortgage payments, and may not accumulate in value as hoped. And a business may not be profitable or long lasting enough to provide for a future retirement. And, of course, ordinary investments are taxed at substantial rates.

The tax savings are significant

Here are some key points to remind clients about the key benefits of an RA, which makes it a unique tool and must-have lifestyle product for a successful financial future.

• Immediate tax relief: Contributions up to 27.5% of income, capped at R350 000 a year, are fully tax deductible

• RA growth is tax-sheltered: No Capital Gains Tax or Dividends Withholding Tax applies, so growth remains untouched

• Retirement tax benefit: First R550 000 lump sum at retirement is tax-free – a major planning tool.

An RA provides lifestyle security

Moving beyond the tax advantages, an RA offers a series of lifestyle enhancements that focuses on the discipline and advantages of saving. As an adviser, convincing clients to save whenever possible is another important foundation of good advice.

• Estate and creditor protection: RA assets fall outside the estate and are protected under the Pension Funds Act

• Access via two-pot system: These reforms allow limited withdrawals, while maintaining the key savings component

• Controlled income: Here clients have a wide choice of living annuity or life annuity options that allow for tailored incomes in retirement

• Forced savings discipline: Instils long-term financial behaviour in younger clients

• Compound interest effect: Starting earlier multiplies growth, thanks to time in the market.

What to do about it

The RA sits as a cornerstone of product selection for a financial needs analysis. It provides tax savings, lifestyle support, and security for when clients retire. Its advantages begin well before retirement and become even more evident once this life stage is reached.

Advisers should emphasise that at any age, an RA is a proven retirement savings vehicle that has the support of government legislation, and offers generous tax advantages and a savings component. This is not to mention the extraordinary power of compound interest over time – the more you give, the more you get.

Some like to argue that the traditional RA has had its day. It is, however, continually evolving, along with the products that enable it. And here the skill of the adviser in deciding what is best for every client comes into play.

RAs remain the most efficient retirement savings vehicles out there, and the test of time continues to prove this after all other options have been exhausted.

By Cassidy Nydahl Head of Growth, Franc App

RHow goal-based investing can help clients reach future financial goals

esearch shows that most investors don’t fail because they choose the wrong fund, they fail because they lose sight of their goals. Defining a clear purpose for your money is what keeps you on track when life throws curveballs. This is the idea behind goal-based investing. You define the outcome first, then determine your contributions and the risk to fit the time you have. In practice, that means mapping short, medium, and long-term horizons, setting a target rand amount for each, and giving every goal a name and an image so it feels concrete enough to stick with when your motivation dips.

“The real shift happens when you understand how much risk you can take”

This approach helps people move beyond the indecision that often comes with too many choices. Once a goal has a time frame and a number, the asset mix follows naturally. A holiday next year needs capital preservation and daily liquidity, so a money market allocation makes sense. A home deposit in five years can take on some equity exposure to grow more over time. The result is fewer second-guessing moments and

less temptation to chase whatever is trending on social media. The plan fits the goal, not the other way around.

Even though a clear goal gives you something to aim at, the real shift happens when you understand how much risk you can take and how long you have to reach it. That alignment builds confidence. It also removes the fear of ‘getting it wrong’, which is one of the biggest psychological barriers to investing.

However, there are three obstacles that stop people from following through: decision fatigue, willpower and isolation. Fortunately, there are practical fixes.

• Automate contributions. If a debit order deducts R100 on payday, the decision has already been made. Automation protects the plan from month-to-month trade-offs. Build accountability. Savings challenges create light social pressure that helps people show up. Shared Goals – available with Franc – do the same. Up to 10 people can contribute to a single goal with complete visibility into deposits, turning good intentions into habits.

• Lower the threshold to start. Start with small amounts and increase later. For this purpose, Franc has no minimums to start investing with on the platform.

Creating financial goals that last

Compiled by Sandy Welch Editor, MoneyMarketing

For advisers, January offers an opportunity to assist your clients to create financial plans they can commit to over the long term. It’s not about New Year resolutions, it’s about setting the groundwork for solid, thoughtful targets that are achievable. With that in mind, MoneyMarketing explored the five most effective ways advisers can guide their clients toward a financially successful 2026.

1

Start with a life-first approach, not a numbers-first one

Great financial goals aren’t built from balance sheets, they’re built from clients’ lived

realities. Advisers should begin by uncovering what clients want their money to do for them: their aspirations, obligations, anxieties and life transitions. Framing finances around life events such as education, home ownership, business ambitions, retirement and lifestyle creates goals that feel meaningful and therefore stick.

2

Translate dreams into measurable, time-bound targets

Clients often describe vague ambitions (“I want to retire comfortably”, “I want to travel more”). Advisers add value by turning these into clear, quantified, time-bound goals. Whether it’s “retire at 65 with

Once the barriers have been overcome, think of a wealth plan like a champagne glass tower. The top glass must fill first, i.e. emergency savings. This is the buffer that keeps a bad month from derailing everything else. Once that is healthy, the champagne flows over to the other glasses (goals), depending on their priority.

Some months, it is a trickle. Other months it is more. The point is sequence and flow. The mix for each goal is set to the timeline. Short horizons stay in cash-like instruments. Longer horizons earn their keep with diversified equity. This picture helps people decide what to fund now, what to pause, and what deserves more risk because there is time to recover.

We are currently working on developing a digital wealth coach (an evolution of the current Franc robo-advice) to help users define a plan across products, choose suitable strategies for each goal, and build the habits to stay on track.

The idea is to have a conversational guide that can adjust recommendations as life changes and keep the focus on the goals. Remind your clients to start with the goal, match the risk to the time, and automate the habit. The rest will follow.

Franc App is a goal-based platform for saving and investing that offers personalised strategies and wealth habit coaching.

R40 000 per month in today’s rand value” or “save R250 000 for a deposit in three years,” measurable targets allow for transparent planning, progress tracking and realistic prioritisation.

3 Build goal hierarchies to manage trade-offs

Not all goals can be funded equally. Advisers should help clients categorise goals into essential, important, and aspirational. This creates a natural decision-making framework when budgets are tight or circumstances change. By ranking goals, advisers can guide clients through tradeoffs without emotional friction and ensure scarce resources are allocated with purpose.

4

Stress-test the plan against real-world risks

A goal is only as good as its resilience. Advisers should model

scenarios that include inflation shocks, market volatility, job loss, longevity risk and healthcare costs. This not only protects clients from unforeseen events but also builds confidence in the plan. Clients who see their goals survive stress tests are more likely to stay invested and avoid panic-driven decisions.

5 Create a dynamic review process that celebrates milestones

Goal setting is not a once-off conversation. Advisers should implement a structured review cycle, annual or semi-annual, where clients’ progress is checked, assumptions updated, and life changes incorporated. Equally important is celebrating milestones: paying off debt, reaching an emergency fund target or hitting a savings landmark. Recognition builds motivation and strengthens adviser–client engagement.

How to get your clients to buy into TFSAs

MoneyMarketing asked Ryan Basdeo, Head: Index Portfolio Management at 1nvest, to unpack the Tax-Free Savings Account, one of the simplest yet most powerful tools available to South African savers. Despite being around for nearly a decade, TFSAs remain widely misunderstood and often underutilised.

What is a TFSA and why should the average saver consider opening one?

A Tax-Free Savings Account (TFSA) is an investment vehicle introduced by the government to encourage saving. The big advantage? All returns, including interest, dividends and capital gains, are completely tax-free. This means your money compounds at a much faster rate. TFSAs are ideal for anyone wanting to grow wealth efficiently for goals such as retirement or education.

How should clients go about deciding which one to choose? Is it worthwhile having more than one?

When choosing a TFSA, clients should be aware of fees and platform costs. High fees erode returns (compounding negatively). It's best to aim for fees below 0.5% where possible. Some providers offer ETFs (low-cost, passive), others unit trusts or fixed deposits. There should be specific TFSA-enabled instruments which are more diversified investments and give exposure to broader themes than concentrated exposures. You can have multiple TFSAs across providers, but the annual (R36 000) and lifetime (R500 000) limits apply across all accounts combined. So, splitting accounts doesn’t increase your allowance. There is a hefty penalty of 40% of the value contributed above the allowed limit. Clients must be very careful not to exceed the limit.

Does 1nvest have any TFSA compliant funds?

Yes, we do - most of our funds are TFSA compliant for example, 1nvest S&P500 Index Feeder or 1nvest MSCI World Index Feeder, however, please refer to the 1nvest website for more information.

One of the biggest advantages of a TFSA is the tax benefit. Can you explain exactly what investors are not taxed on, and how this impacts long-term growth?

Clients pay zero tax on interest income, dividends and capital gains. This means every rand earned stays invested, compounding over time. Let’s assume that you invest the maximum R3 000 per month into a tax-free savings account (TFSA) over 25 years. You achieve an average annual return of 6% after inflation compounded monthly. After roughly 14 years, you will have invested the maximum R500 000. Your investment will continue to grow untouched for the remaining years, even though contributions have stopped. At a 6% average annual return, compounded monthly, your final balance after 25 years would equate to just over R1.5m. You can withdraw the full amount, entirely tax free.

Why should a young person choose to put extra money into a TFSA as opposed to topping up a retirement annuity?

Contribution limits are often seen as a drawback of TFSAs. How should investors approach these limits, and do smaller regular contributions still make a meaningful difference?

Even small monthly contributions (such as R500) matter because of compounded growth. Starting early is key. Think of it this way: If you plant a tree today, it has decades to grow tall and strong, providing shade and fruit. If you wait 20 years, you’ll still get a tree, but it will never be as big or as fruitful as the one planted earlier. Time is the sunlight and water for your money. The longer it has, the more it compounds and grows. Warren Buffett famously said it: “The best time to plant a tree was 20 years ago. The second best time is now.”

Some people think TFSAs should only be used for short-term goals. Is that accurate, or can they play a powerful role in long-term wealth creation as well?

No, it’s seriously flawed to think so. While withdrawals are allowed anytime, the real power is in long-term compounding. Using a TFSA for short-term savings wastes its tax advantage. Remember, withdrawals also eat up your R500 000 limit.

What are some common mistakes you see people making with TFSAs, and how can investors avoid them?

Ryan Basdeo, Head: Index Portfolio Management at 1nvest

The pros of a TFSA include full flexibility. Investors can withdraw at any time while enjoying tax-free growth and no restrictions on asset allocation. The pros of an RA is that they are tax-deductible (up to 27.5% of income), but funds are locked until age 55. For young investors, a TFSA offers liquidity and global investment options without Regulation 28 limits. Ideally, do both: max RA for tax deductions, then use TFSA for extra savings.

“While withdrawals are allowed anytime, the real power is long-term compounding”

Over-contributing: Exceeding limits triggers a 40% penalty

• Using TFSA as an emergency fund: Withdrawals reduce lifetime allowance permanently

• Waiting until year-end to invest: Delays compounding; start early or set up debit orders

• Choosing low-growth products (e.g. fixed deposits): Misses out on equity growth potential.

For South Africans feeling financially stretched, why is it still worth prioritising a TFSA, even with a small monthly debit order, and is January a good time to start?

January is ideal: you capture growth for the full tax year and avoid the last-minute rush. Consistency beats lump sums at year-end. Even if you start small, compounding is your friend and works best over time.

Seniors lead the charge in Tax-Free Savings growth

FNB is seeing a surge in tax-free savings account uptake, with senior customers leading the way. Usage among seniors has jumped by 35.91%, compared to 6.57% growth among youth, highlighting a growing awareness of the power of tax-free investing for long-term financial security. At the start of the financial year, 4% of FNB customers had already fully funded their tax-free savings accounts, positioning themselves to maximise returns through early contributions and compound growth. “Clients who make lump-sum payments early in the year benefit most from compound interest, accelerating their wealth creation,” says Himal Parbhoo, CEO of Retail Cash Investments at FNB. Since launch, tax-free savings accounts have become a cornerstone of wealth creation for FNB clients. Parbhoo adds, “The appeal lies in their simplicity and effectiveness. All returns, including interest, dividends, and capital gains, are completely tax-free. In contrast, traditional savings and investment accounts are subject to tax on returns, which can significantly slow down growth over time.

“Tax-free savings accounts have become a cornerstone of wealth creation”

“With tax-free savings, every rand earned stays invested and continues to grow. It’s one of the most efficient ways to build wealth over the long term,” says Parbhoo.

However, FNB cautions that tax-free savings accounts are designed for long-term growth, not for frequent transactions or emergency withdrawals. Early withdrawals count against your lifetime contribution limit, and once you’ve reached the annual cap of R36 000, any excess contributions could be taxed at up to 40%. “The longer you save and invest, the more powerful the compounding effect becomes,” says Parbhoo. “We’re committed to helping our customers build a robust financial future, and our financial advisors are ready to guide you every step of the way.”

Parbhoo concludes, “It’s encouraging to see more seniors embracing tax-free savings as a smart way to preserve and grow their wealth. Their proactive approach is a powerful example of how long-term planning can deliver meaningful financial benefits.” To help customers make the most of this opportunity, FNB offers a range of tax-free savings products across multiple asset classes, including cash, unit trusts, and shares, allowing for a diversified and tax-efficient investment strategy.

The annual tax-efficiency playbook for advisers

For financial advisers, the final quarter of the tax year is one of the most important moments to influence long-term client outcomes. While every client’s journey is unique, two goals remain consistent across all demographics: building wealth and retiring comfortably. And both of those goals depend heavily on how well advisers help clients manage the silent destroyer of returns: tax.

As Martin Riekert, Chief Commercial Officer at Momentum Investments, puts it, “Everyone’s journey is unique, but smart, tax-efficient investing is one of the few levers every South African can use to meaningfully improve long-term outcomes.”

Tax remains a sensitive, confusing, and often-avoided subject for clients, which is precisely why advisers must take the lead. By positioning tax as an opportunity rather than a burden, advisers can demonstrate tangible annual value, optimise client contributions, and measurably improve retirement readiness.

Two of the most powerful tools available to you remain the same: retirement annuities (RAs) and tax-free investments (TFSAs). When used intelligently and topped up proactively, they can help clients legally and effectively reduce their tax liability every single year.

1. Use RAs to reduce taxable income

RAs offer one of the most generous tax incentives available to individuals, and an annual top-up conversation is an easy win for advisers. Clients can deduct up to 27.5% of taxable income or remuneration (whichever is higher), capped at R350 000 per year.

This is especially useful for: Clients who are self-employed Higher-income earners

• Clients contributing less than their maximum at their employer fund

• Clients with fluctuating income (bonuses, commissions, business income).

If a client hasn’t fully utilised their allowable deduction, a pre- 28 February top-up can immediately reduce their taxable income while boosting long-term compounding.

Riekert notes: “The decision to start saving and investing for retirement is one of the most important a client will ever make. Tax incentives dramatically improve the probability of reaching those goals.” And the benefits go beyond the upfront deduction. Growth inside an RA is completely tax-free with no income tax, no dividends tax, no

CGT, giving clients a stronger long-term compounding engine.

TIP: For advisers, the message is simple: If your client hasn’t maximised their RA deduction, they’re missing out on guaranteed returns in the form of tax savings.

2. Use TFSAs for long-term, accessible, taxfree growth

TFSAs don’t provide an upfront deduction but their long-term tax advantages remain hugely powerful.

Clients can contribute:

• Up to R36 000 per tax year

Up to R500 000 over a lifetime.

All growth is tax-free, and even more importantly, withdrawals are tax-free, making TFSAs ideal for young savers, clients needing flexible long-term savings, diversification outside retirement fund Regulation 28 limits, and supplementing retirement income in later years (without tax drag). Riekert emphasises: “Tax-free investments allow clients to enjoy completely tax-free growth. Used consistently, they become a substantial enhancer of long-term wealth.”

TIP: For advisers, annual TFSA top-ups are an easy, repeatable value-add and a useful behavioural tool. Small, consistent, tax-efficient contributions build meaningful buffers for clients over time.

3. Advocate for annual tax planning

The science of successful advisory practice is simple: Help clients use tax incentives consistently and within limits, year after year. Every February, clients face a choice: Give more to SARS or give more to their future selves.

TIP: Your role as adviser is to make that choice visible and easy.

4. Position tax-efficiency as part of a bigger wealth plan

Clients shouldn’t see tax planning as a once-off task. It should be part of the annual rhythm of financial advice.

TIP: By reframing the conversation from tax avoidance to tax optimisation, advisers can deepen trust and strengthen the advisory relationship.

Riekert concludes: “Don’t avoid tax but avoid paying too much of it by being tax-savvy.”

By Thomas Berry Head of Sales at PSG Wealth

FChoosing between an RA and a TFSA

or many South Africans, a year-end bonus offers an annual opportunity to exhale and catch up on debts. But what if the focus was shifted from short-term fulfilment to long-term gain?

This is the year to advise your clients to look at a wealth accelerator. By investing a portion of their bonus in the right way, they can fasttrack their progress towards long-term goals such as home ownership, education or even an earlier retirement, without having to cut back on their lifestyle.

The key lies in how they use the tools available, particularly retirement annuities (RAs) and tax-free savings accounts (TFSAs). Both offer tax-free growth while money remains invested, which means there is no tax on the interest, dividends or capital gains in either of these investment vehicles. Naturally, the less tax paid on your investments, the faster they compound over time.

An RA provides tax benefits, estate planning advantages and creditor protection, making it an ideal vehicle for long-term retirement savings, with access typically restricted until retirement age (currently 55), except for specific circumstances. Under the new twopot retirement system, investors will also have limited access to a portion of their savings while preserving the rest for retirement.

Tax-free savings accounts: Flexibility with purpose

Contributing part of a bonus to either of these options is, therefore, one of the most effective ways to build long-term wealth.

Retirement annuities: A long-term growth engine

By contributing to an RA, it is possible to deduct up to 27.5% of taxable income each year (capped at R350 000), effectively lowering tax bills while building a retirement fund. Those tax savings can then be reinvested to further accelerate growth.

This enforced discipline keeps money invested and compounding for decades. When the time comes to retire, only a portion of the lump sum is taxed, and any investment growth along the way is completely tax-free.

“Both offer tax-free growth while money remains invested”

While RAs focus on long-term retirement planning, TFSAs offer flexibility for medium-term goals. Clients can contribute up to R36 000 a year, up to a lifetime limit of R500 000, and all interest, dividends and capital gains are tax-free. Because funds can be accessed at any time, a TFSA is well-suited for goals such as funding a child’s education, paying a home deposit, or creating a safety net for future expenses. However, withdrawals permanently reduce the contribution limit – so it’s important to plan carefully before dipping in.

Another advantage of TFSAs is the ability to invest across asset classes, without the restrictions that apply to RAs under Regulation 28. This provides the freedom to tailor an investment strategy according to goals and risk  appetite.

Turn a once-off reward into lasting progress

Using a bonus to invest means balancing reward and responsibility. Allocating even a fraction of a bonus towards an RA or TFSA can have a measurable impact over time – especially when compounded annually.

The graph on the left illustrates just how powerful compound interest can be. At age 20, investor 1 starts saving with a monthly contribution of R500. Investor 2 starts saving at the age of 35 and contributes R2 500 per month – five times as much – to end up with the same amount at retirement.

While this scenario demonstrates for your clients the benefit of starting as early as possible when it comes to saving for retirement, as we all know, the best time to begin investing is right now.

By Ielyaas Gamiet Manager in the Group Savings and Investments team, Allan Gray

The role of group risk in employee benefits

Structuring a compelling employee benefits package for staff is no easy task. A sound benefits structure, often achieved through group risk solutions, includes protection and planning pillars and can promote physical and financial wellbeing, as well as help improve staff loyalty and retention.

How to approach group risk

At the recent Allan Gray retirement benefits conference entitled ‘Through the Noise 2025’, we explored how group risk is perceived and approached, and where it fits into today’s employee benefits ecosystem.

A clear message emerging from the discussion is that group risk benefits are critical to financial and social security. Like retirement savings, they provide employees in South Africa with access to financial products that many may not be able to afford on their own.

The panel’s insights on claims trends illustrate the need for employers to support a healthy, productive workforce by adopting integrated employee benefit solutions that address the physical, financial and emotional wellbeing of their employees. Here are three key reflections from the panel discussion that can inform how to think about group risk benefits.

Approach group risk from a partnership lens Group risk offers more than individual protection: it is also a form of community support. As Old Mutual’s head of Customer Proposition: Group Assurance Products Brice Salence Nunes stressed, many employees support extended households and may not easily afford individual cover, making group risk insurance vital. In addition, SanMarié Crause, Managing Executive: Group Risk at Sanlam Corporate, highlighted the need to shift from a commoditised approach to one rooted in partnership – where, beyond pricing, data insights, long-term thinking and relationship-building guide group risk decisions.

Focus on critical illness

Cancer-related claims are on the rise, with Sanlam reporting that cancer accounts for around 20% of disability claims and approximately half of severe illness claims. However, severe illness benefits make up only 3% of total group risk premiums. This mismatch clearly highlights a coverage deficit, leaving many employees financially vulnerable when they need the most support, and underscores the importance of reassessing benefit structures to better reflect evolving health risks.

The Allan Gray Umbrella Retirement Fund

Simpler choices. Better decisions.

With countless funds to choose from, making the right investment decision for your employees can be daunting. At Allan Gray, we simplify this process by providing a considered selection of funds containing our best investment ideas. Our focus is on removing complexity from retirement benefits, so that you can concentrate on what matters most: running your business.

To find out more about our Umbrella Retirement Fund, call Allan Gray on 0860 000 870, or your financial adviser, or visit www.allangray.co.za.

Understand the impact of lifestyle trends

Rudi van Rooyen, Executive Head of Actuarial at Hollard Insurance, noted that obesity rates in South Africa have surged, with studies showing they have doubled in the past 25 years and tripled in the previous 50 years. He cited a recent Human Sciences Research Council (HSRC) study that revealed that nearly 50% of South Africans have been classified as obese or overweight, which is linked to the heightened risk of developing chronic conditions such as hypertension, diabetes and mental illnesses. If not addressed or managed correctly, these issues could affect both employer productivity and employee financial wellbeing.

Old Mutual’s Nunes added that while HIV- and AIDSrelated deaths have declined, recent cuts in donor funding from the United States Agency for International Development (USAID) may reverse progress, increasing tuberculosis (TB) cases and disability claims.

All three panellists emphasised the growing need for employers to actively support employee health through education, awareness and integrated benefit strategies that work to solve the funding gap.

Every pillar has its place

Balancing affordability, optimal benefit coverage and costs remains a challenge, but it is a long-term journey. With strategic commitment from employers, quality guidance from consultants and advisers, and forwardfocused products from providers, group risk can become a critical and compelling tool in the employee benefits ecosystem.

Advisers need to view retirement through a new lens

By Sandy Welch Editor, MoneyMarketing

Retirement is no longer the quiet conclusion to a working life. It’s a new and complex life stage financially, emotionally and psychologically. And in a South Africa that is rapidly digitising, the way people prepare for that transition is changing even faster than the retirement landscape itself.

According to the 2025 DataReportal analysis, more than 78% of South Africans are now online. Convenience has never been greater, but that convenience has come at a subtle cost that includes depth, nuance and face-to-face connection. And nowhere is this more evident than in financial planning. “In-person meetings have become video calls, conversations have turned into messages,” says Hein Klee, Nedbank Financial Planning Executive. “But retirement planning needs more than efficiency, and it needs empathy.”

AI Is useful, but it isn’t a planner Technology is reshaping the way people interact with financial information. Algorithms can crunch data at scale. Generic planning tools can produce quick scenarios. But they can’t interpret emotion, intention or fear, which are factors that heavily influence retirement decisions. “I see AI as intelligent assistance… it helps, guides and

gives scenarios, but it won’t replace human experience or collective expertise,” says Klee.

AI can support the process, but it cannot provide behavioural coaching during market volatility, mediate family dynamics, or guide clients through deeply personal conversations about legacy, mortality or identity. It is precisely these moments where human advisers become indispensable.

Retirement is not a retreat, it’s a reinvention “Retirement isn’t the end; it’s the start of a new cycle in your life. Emotional readiness is as important as affordability,” Klee emphasises. This shift in language is crucial. Historically, retirement was framed as a withdrawal, a winding down. Today, it represents something entirely different: the launch of a new chapter, one where time becomes the most valuable asset.

This is where many South Africans struggle. Too often, retirees panic, de-risk too aggressively, or shift entirely into cash, undermining the longterm inflation-beating returns they still need for a 25- or 30-year retirement.

A more sustainable approach, Klee argues, involves balanced, diversified portfolios rather than ‘all-in’ risk shifts; disciplined drawdowns, typically around 7% or less; and a long-term perspective that acknowledges inevitable volatility. The goal is to preserve purchasing power, not just capital.

The hidden risks in sureties and liquidity

One of the most urgent education gaps Klee identifies is among entrepreneurs. Business owners frequently underestimate the extent to which their personal and business lives are financially intertwined. “We must educate entrepreneurs: business debt and sureties can cascade into personal estates, so plan for liquidity,” he says.

When a business owner dies, the liabilities tied to personal sureties flow through to the estate. Without sufficient liquidity, families are often forced to sell assets, including family homes or farms, under pressure. Funeral costs, executor fees and immediate cash needs can further strain an already complex transition. Estate planning, in this context, is not a luxury. It is risk management.

“Retirement is an intensely personal transition. It is about identity, purpose and relationships”

Cost-of-living pressures are redefining retirement behaviours

South Africans continue to face rising living costs, including high medical inflation, bracket creep due to sticky tax thresholds, escalating costs of essentials, and unpredictable energy and municipal bills. Klee warns that these pressures reduce disposable income and, over time, the ability to save effectively. Annual budgeting reviews and adviser-led planning are becoming non-negotiable, especially for pre-retirees.

Tackling

the active vs passive debate

Younger investors often gravitate toward low-cost passive funds, a trend accelerated by digital platforms and fee awareness. While cost-efficiency is important, retirement portfolios require more than that. A blended approach, Klee explains, can offer better downside protection and more flexible tools for navigating volatile markets, particularly in the years leading up to and early into retirement. Interest in ESG investing remains strong, but performance trade-offs, methodological inconsistency, and ‘greenwashing’ concerns mean advisers must guide clients carefully.

Crypto is a growing curiosity

While enthusiasm for digital assets remains high, Nedbank’s stance is measured. There is no direct crypto exposure in recommended portfolios. Instead, advisers may consider indirect exposure such as infrastructure providers where appropriate and within a regulated environment. Volatility, uncertain regulation, and SARS tax treatment remain key barriers to wider adoption.

Early and consistent saving remains key

One of the strongest levers for retirement readiness remains the simplest: start early. Tax-Free Savings Accounts (TFSAs) continue to illustrate the compounding power of disciplined, tax-free growth. Even small contributions accumulate meaningfully over decades. “Do something rather than nothing,” Klee stresses. “Saving small amounts consistently is far better than delaying until conditions feel perfect.”

Keeping the human touch

Retirement is an intensely personal transition. It is about identity, purpose and relationships just as much as money. “When people are encouraged to reflect openly, without jargon or judgement, they begin to reimagine what is possible,” Klee says. Smart technology can support the process. But it is the conversation – human to human – that drives clarity, confidence and action. “Retirement isn’t the end,” Klee says. “It is the beginning of a life lived with clarity, confidence and purpose.”

How can South Africans protect themselves against the risks of living longer?

By Joretha Bothma Head of Product Development, Underwriting and Claims at Momentum Life Insurance

Comprehensive protection is critical to prevent the dilution of a carefully planned retirement. While most financial plans account for a traditional retirement timeline, the growing trend of increased longevity in South Africa requires advisers and clients to rethink their risk assumptions.

The reality is that many people are living well into old age. Our own data reflects this: in 2024, Momentum Life Insurance paid out life cover claims for eight centenarians, part of a 14-year trend of paying claims to clients over the age of 100. One life cover payout went to a woman born in 1919 who outlived both her children and grandchildren. While she lived a full life, she required specialised care in her final years. Her longevity is a reminder that long-term financial planning must extend well beyond the traditional retirement age.

This trend is supported by national demographics. Statistics South Africa reports that older people are South Africa’s fastestgrowing demographic. While the estimated life expectancy in South Africa for 2025 is 64 years for men and 69,6 years for women, according to Stats SA, many people are exceeding this average. The number of South Africans over 60 grew from 3.5 million in 2002 to 6,1 million in 2024 – an average annual growth rate of 2,51%. Momentum’s data confirms this, with 41% of total death claims for individuals over the age of 70, and the largest percentage increase in death claims for 2024 seen in people in their 80s and 90s.

While many older clients recognise the need for life cover to secure an inheritance, cover estate costs, or protect a surviving spouse’s income, few consider the financial impact of a critical illness in old age. This is the silent risk that can quickly erode a nest egg or eliminate an intended inheritance.

The data reveals a critical protection gap. In 2023, just 12% of South Africans had life insurance, according to the FinScope Consumer South Africa 2023 Survey. Momentum’s data, supported by the findings of the 2025 Insurance Gap Study, reveals that even fewer people have critical illness cover. A concerning insight is that 59% of our 2024 death claims had cardiovascular or cancer (critical illness) causes, and 80% of

“To truly protect a long retirement, it is crucial to include critical illness cover”

these clients did not have critical illness cover with Momentum.

As people age, the likelihood of suffering a critical illness increases, making critical illness cover crucial. It provides a lump sum for treatment, palliative care, or lifestyle adjustments after suffering a critical illness.

As an example, when it comes to cancer, the lifetime risk is significant. One in two people will be diagnosed with cancer by age 85. In 2024, cancer accounted for 45% of Momentum’s critical illness claims.

The rising cost of newer therapies, like advanced cancer treatments, often exceeds available medical aid benefits. When a critical illness strikes, the financial burden can extend beyond medical bills, requiring spouses or relatives to stop working to care for the patient, sometimes for extended periods, resulting in lost household income. In some cases, patients may require 24-hour medical care, paid nursing assistance, mobility aids such as wheelchairs, and transport to appointments. These pressures can strain families across generations and lead to the dilution of retirement savings – precisely what proper planning is meant to prevent.

To truly protect a long retirement, it is crucial to include critical illness cover for a whole life term. Momentum Myriad, our flagship life insurance product, is designed to close this gap with the most comprehensive critical illness benefit in the market, offering cover across 20 defined claim categories, including early-stage cancer. Clients also benefit from the Breadth of Cover Guarantee®, a market-leading feature that ensures the highest likelihood of a successful critical illness payout in the market.

Clients who add the Longevity Protector (Critical Illness) benefit to their Momentum Myriad critical illness cover qualify for a Longevity Enhancer bonus payout equal to 20% of their critical illness cover, at age 80, if they have never claimed before then. This payout rewards clients for staying healthy and can provide a valuable boost to their retirement income. Best of all, the Longevity Enhancer payout does not reduce their cover – ensuring full critical illness protection remains in place should they ever need it later in life.

At Momentum Life Insurance, we advocate for a holistic, age-aware approach to risk planning. For financial advisers, this means challenging traditional life expectancy assumptions and proactively addressing the risk of critical illness to ensure every client has the financial peace of mind they deserve throughout their extended retirement.

By Bjorn Ladewig Head of Distribution at Just SA

WBalancing upside potential with guaranteed downside protection

ith-profit annuities continue to deliver good value, giving advisers and retirees a strong retirement income option. These solutions are designed to balance growth potential and security. By linking income increases to investment performance, retirees benefit from market upside without sacrificing stability. Yet income can never reduce, no matter what markets do or how long you live, striking the balance between upside exposure and downside protection.

Supported by robust equity and bond market performance in 2025, the balanced funds underpinning these annuities have achieved impressive returns, creating a strong foundation for meaningful income increases in the years ahead.

Strong market gains have lifted smoothed returns for popular funds to 12%–14%, creating a solid foundation for future increases. Indicative increase ranges for Just Lifetime Income in 2026 are between 3% and 9%, depending on the increase option selected at the outset of the policy.

The 2026 increases per investment portfolio are available on our website. And the outlook remains positive for the foreseeable future, with a low-return year dropping off in 2027. Similar ranges are therefore expected next year, reinforcing the resilience of this solution.

Why with-profit annuities stand out

With-profit annuities combine certainty and growth, making them a cornerstone of retirement planning.

• Market-linked upside: Income increases track the performance of underlying balanced funds, allowing retirees to share in market gains

• Smoothing for stability: A six-year smoothing mechanism reduces short-term volatility

• Guaranteed income floor: Income never decreases, regardless of market conditions

• Income for life: Payments continue for as long as the retiree lives, providing lasting financial security.

Higher effective income

Despite softer annuity rates, effective income

levels remain strong. Fund growth has outpaced rate declines, boosting annuitants’ purchasing power. Current annuity rates already reflect these gains and adding Just SA’s Advance feature can further lift starting income by 5%–15%, creating a compelling proposition for retirees seeking both immediate and long-term growth.

Building retirement confidence

Advisers play a critical role in shaping financial security for clients in, or approaching, retirement. It goes beyond product selection. It is about empowering clients with knowledge, demystifying the mechanics of all types of annuities, and reinforcing the value of stability and growth throughout their retirement journey.

A with-profit annuity delivers a combination of features for retirees. Your expert guidance ensures that retirees feel confident that their income will not only last a lifetime, but can also rise with investment performance, helping them enjoy retirement with optimism.

Partner with Just SA for reliable and innovative retirement income solutions. Together, we can turn market strength into lasting financial security.

By Martiens Barnard Marketing Actuary at Momentum Wealth

RClosing the retirement income gap: A smarter way forward

etirement planning often feels like a balancing act between what clients want and what their savings can realistically deliver. For decades, the 4% withdrawal rule has been the go-to guideline for living annuities, generating an income that could last for 25 to 30 years.

But in today’s world of fluctuating markets and rising costs, sticking to that rule can feel impossible. The good news? Innovative solutions, such as Momentum Wealth’s Guaranteed Annuity Portfolio (GAP) are rewriting the rules, enabling advisers to secure clients’ retirement income for longer without incurring excessive risk.

The rule of thumb principle is simple: if your client wants the income from their living annuity to last 25 to 30 years and keep pace with inflation, their withdrawal rate should not exceed 4% to 5% of the investment value at retirement. This guideline assumes a net return of roughly 8.2% per year for a 5% drawdown, based on a 5% inflation assumption.* At higher drawdown rates, say 6% or more, the required returns quickly climb into double digits, which are rarely sustainable over the long term.

Consider drawing 5% from a living annuity, which means a client needs R2m to start with a yearly income of R100 000 (about R8 333 per month). For clients aiming for R50 000 per month, the capital requirement jumps to R12m. These numbers highlight why many retirees end up breaking the rule of thumb and drawing more than 5%, which in turn demands unrealistic returns from marketlinked assets.**

The Guaranteed Annuity Portfolio from Momentum Wealth changes the game. By locking in a guaranteed income for life, it helps advisers protect a portion of their clients’ retirement income while maintaining flexibility through the living annuity structure.

“Clients no longer have to choose between the certainty of a life annuity and the flexibility of a living annuity”

Unlike traditional market-linked components, the income from the Guaranteed Annuity Portfolio is not tied to market performance; it’s guaranteed and it provides a comparatively high income throughout retirement.

This means advisers can help clients who are drawing income levels that are somewhat higher than the 4% withdrawal rule, without increasing the required return on their remaining market-linked assets. A 65-yearold male drawing 5% from a traditional living annuity would need an 8.2% net return to sustain his income until age 90. Let’s say the same client cannot afford to draw only 5% but increases his income to 6.5%. This would normally imply that the client would need a required return of more than 10%.**

When allocating 50% to the Guaranteed Annuity Portfolio, the same client will still be able to sustain his income until the age of 90 and will now require a lower return from the market-linked portion, which in this instance is a required return of 8.1%.**

What are the mechanics behind this?

Think of the Guaranteed Annuity Portfolio component as a stabiliser in the income equation. R1m allocated to the Guaranteed Annuity Portfolio can deliver a starting income of about R6 686 per month (escalating at 5% yearly), equivalent to a yield of just more than 8% on that portion. This reduces pressure on the remaining assets, lowering the proportion of the income these assets need to fund, implying that you now require a slightly lower, sustainable return from them.

Clients no longer have to choose between the certainty of a life annuity and the flexibility of a living annuity. The Guaranteed Annuity Portfolio enables a blended solution that addresses longevity risk, income sustainability, and client peace of mind, all while giving advisers a powerful tool to differentiate their retirement planning approach.

Reimagine retirement income planning and empower your clients to retire with confidence. Speak to your Momentum consultant today to explore the retirement income solutions from Momentum Wealth and how the Income Illustrator can elevate your retirement income planning conversations. For more information, visit our website momentum.co.za.

By Jenny Gordon Head: Technical Advice at Alexforbes

SAccess to retirement funds on emigration from South Africa

outh Africans are a mobile nation.

Many people build their careers abroad or decide to relocate permanently for family or lifestyle reasons. But what happens to your South African retirement savings when you emigrate? The rules can be confusing, especially since the introduction of the new two-pot retirement system.

Understanding the types of retirement funds

In South Africa, retirement savings are grouped into three main categories: occupational funds (pension and provident funds, through your employer), preservation funds (pension and provident preservation), and retirement annuity funds (funds that you contribute to privately).

These funds exist to help South Africans save enough to live comfortably when they stop working and to reduce their reliance on the state in retirement. That’s why the system is supported by generous tax incentives. In exchange, there are restrictions on when and how clients can access their money.

The two-pot system: A quick recap

Under the new two-pot retirement system, which came into effect recently, retirement savings are divided into three parts:

• Retirement component – This portion is locked in until you retire and must be used to provide an income in retirement Savings component – You can access this while you’re still working but only once a year and within limits

• Vested component – This refers to savings accumulated before the new system started and may have different withdrawal rules depending on the fund.

“Withdrawals from a retirement fund on emigration are subject to tax”

This structure is designed to give members limited flexibility while ensuring they don’t deplete their retirement capital too soon. However, things work differently when you emigrate permanently and are no longer part of the South African tax base.

What happens when you emigrate?

Once you officially cease to be a South African tax resident, you are effectively no longer part of the country’s retirement system. The law therefore allows emigrants to access their retirement savings earlier than those who remain in South Africa but there are waiting periods and conditions, depending on your situation.

1. Temporary residents

If you worked in South Africa on a temporary work visa and your visa has since expired, you can withdraw your full retirement benefit immediately after leaving the country. There’s no waiting period, regardless of the fund type.

2. Individuals who emigrated more than three years ago

If you emigrated and ceased to be a South African tax resident more than three years ago, you can withdraw all your retirement savings, including the retirement and vested components without any waiting time.

3. Individuals who emigrated within the last three years

Other members who ceased to be South African tax residents less than three years ago will have some waiting periods.

• They will not be able to withdraw their retirement component until they have been non-residents for an uninterrupted period of three years

There are some differences between the different types of funds: In a retirement annuity fund, the vested component will also be subject to the uninterrupted three-year period

In a preservation fund, the latest legislative proposals will allow immediate access to the vested component if it is the first withdrawal. If the member had a previous withdrawal or has previously

transferred a retirement benefit after retiring from employment, the member will also have to wait for the threeyear period.

The savings component, however, is always available for immediate withdrawal.

Tax implications

Withdrawals from a retirement fund on emigration are subject to tax, but the rate and method depend on which component is being accessed:

• The savings component is taxed at the normal income-tax rate

The retirement and vested components are taxed according to the lump-sum withdrawal tables, where higher amounts attract higher rates of tax.

Another key consideration is whether the new country of residence has a Double Taxation Agreement (DTA) with South Africa. These agreements determine where the income is taxed, in South Africa or in the new country, and help prevent being taxed twice on the same withdrawal.

Planning is essential

The rules around accessing retirement funds after emigration can seem complex, especially with the new two-pot structure now in place. Timing is crucial: the three-year waiting rule can make a big difference to when you’ll have access to your full savings and how much tax you’ll pay.

It’s essential for financial planners and tax specialists to help clarify to clients how the rules apply to each specific situation, assist with the paperwork required and the South African Revenue Service (SARS), and ensure the withdrawal is processed in the most taxefficient way possible.

South Africa’s retirement fund system is designed to protect long-term savings, ensuring that members have a secure income later in life. Yet, for those who choose to build their future abroad, the law also provides a fair and practical route to access these funds.

Understanding how the different fund components work, the timing requirements and the tax implications can help emigrants make informed decisions and avoid unpleasant surprises down the line. With careful planning and professional advice, clients can ensure their hard-earned retirement savings continue to support goals, wherever in the world they may be.

“AI helps us focus on what will happen – and what to do about it”

By Simon Bittlestone FCMA, CGMA, NonExecutive Director at Metapraxis

AHow finance AI

is enabling better analytics and decision-making

rtificial Intelligence is no longer an abstract concept for the finance profession – it’s already embedded in the tools, systems and processes that define how finance delivers insight. But it is also something far more profound: a force multiplier for human intelligence. AI performs the tasks that rely on speed, pattern recognition and precision. Humans bring creativity, empathy and judgment. The real power lies in how we combine these strengths, augmenting human decision-making with machine capability to create a finance function that’s faster, smarter, and infinitely more valuable.

The four big shifts reshaping finance

Today’s finance leaders are navigating four massive shifts: Time horizon management, capital management, relationship management, and business model management. Analytics underpins all four, but AI is transforming analytics.

Traditional analytics has been limited by human bandwidth and spreadsheet constraints. It explained what happened, retrospectively. AI helps us focus on what will happen – and what to do about it. It’s the difference between hindsight and foresight, between static reporting and real-time, prescriptive insight. This isn’t a step-change. It’s a revolution in finance capability.

What AI brings to finance

AI empowers leaders to deliver sharper analytics, stronger decision support, and greater strategic value. It turns finance into the custodian of AI-enabled business intelligence – driving growth, managing risk and shaping decisions that define the future. AI is already reshaping every part of the analytics value chain:

• Data integration – Cleans, merges and validates vast datasets automatically

• Predictive analytics – Forecasts cashflow, revenue and working capital with near-instant accuracy

• Natural language processing – Allows you to query your data in plain English or automate management commentary

• Anomaly detection – Flags fraud, compliance breaches, and errors faster than traditional controls

• Scenario modelling – Runs hundreds of ‘what-if’ simulations instantly.

These capabilities move finance from reporting on performance, to driving performance. AIpowered forecasting, reconciliations, risk scoring and decision support allow finance teams to spend less time gathering and analysing data, and more time interpreting it – thereby shaping business strategy, not just recording it. This impact spans three critical dimensions:

• Strategic – Sharper foresight and faster, data-backed decisions

• Operational – Shorter cycles, lower costs and highervalue work

• Risk – Stronger compliance, fewer errors, and earlier fraud detection.

AI Is already in your finance stack

Adopting AI doesn’t mean reinventing your finance systems. In fact, you already own much of the capability. Emerging tools like ChatGPT and generative AI can analyse financial data, summarise commentary, and explain performance drivers instantly. Your existing ERP and FP&A platforms – such as SAP, Oracle, Workday, Anaplan, Adaptive Insights, etc – are all embedding AI features like automated reconciliations, predictive forecasts and anomaly detection. Even analytics platforms such as Power BI, Tableau, and Qlik now include AI copilots that surface trends you might miss. The opportunity for CFOs is not to build

AI from scratch, but to connect, enable, and upskill teams to leverage what’s already there. AI isn’t a future technology project; it’s a clear and very present competitive advantage.

Managing risk and building trust

Sceptics often ask whether AI forecasts can be trusted, or whether they’re ‘black boxes’. In reality, AI is no less transparent than any other financial model. It works from data and logic and can even now show which factors drive predictions much more clearly than traditional excel-based models. Like any model, it must be validated, sense-checked and monitored – a process that finance professionals already excel at. And while data quality remains a challenge, that’s precisely why you should start now. AI can help identify anomalies, standardise data, and build a single source of truth faster than manual approaches. Start small. Pilot. Test. Iterate. The sooner you begin, the faster your data – and your team – will mature.

CFOs should focus first on enablement:

• Give teams access to AI tools within data governance controls

• Encourage experimentation and learning through safe pilots

• Free up capacity for process transformation, in forecasting, modelling and consolidation.

As repetitive tasks vanish, finance will have more capacity to engage with business partners, shape strategy and influence performance. The convergence of human insight and machine intelligence is not the end of the finance profession, it is its reinvention. Because in the age of AI, the future of finance is not about replacing people; it’s about amplifying their potential.

The new rules of customer engagement

The banking, financial services and insurance (BFSI) sector is navigating a perfect economic storm: rising cost-ofliving pressures, household cashflow stress, regulatory expansion, and new risks linked to climate, fraud, conduct, and geopolitical volatility. At the same time, customer expectations are shifting faster than most institutions can update their systems. Fintech competition, GenAI, realtime channels, and API-driven architectures are forcing banks and insurers to rethink how decisions are made across the enterprise.

According to SAS, it’s time for banks and insurers to transition from isolated campaigns to enterprise customer decisioning that enhances every interaction – from acquisition and onboarding to collections and retention. James MacDonald, Senior Customer Success Manager at SAS South Africa, says the industry is moving away from siloed technologies and toward a single architecture with a single decision engine. This model delivers consistent, explainable decisions across marketing, risk, fraud and service, and helps BFSI leaders run the bank of today while building the bank of tomorrow. MacDonald explains that many financial institutions still treat decisions as separate projects in marketing, risk, fraud and operations. The result is a patchwork of models, rules and campaigns that compete for the same customer rather than working together. “Customers experience the whole organisation, not individual systems,” says MacDonald. “If banks and insurers want to be relevant and

trusted, they need a single decisioning brain that understands context, weighs risk and value, and chooses the next best action in realtime, regardless of the channel.”

From campaigns to enterprise decisioning

Drawing on SAS’s work with global and regional institutions, MacDonald outlines how an integrated approach to enterprise customer decisioning helps BFSI organisations futureproof their businesses. Instead of building one model per campaign or product, institutions centralise decision-making logic in a platform that can weigh multiple signals simultaneously, such as customer behaviour, credit risk, fraud indicators and service history.

This approach supports a shift from channel-centric thinking to customer-centric outcomes. It allows a bank or insurer to ask, in every interaction, “What is the best decision for this customer right now, given our risk appetite, regulatory obligations and long-term relationship?”

According to MacDonald, the benefits are not only commercial. A consistent decisioning layer helps institutions demonstrate fairness, traceability, and regulatory compliance by enabling them to show how each decision was made, which data were used, and which policies were applied.

Predictive insights and hyper-personalised journeys MacDonald highlights how predictive analytics and machine learning models inside the

“Enterprise customer decisioning gives banks and insurers the ability to evaluate context and risk within milliseconds”

decisioning platform can identify intent and risk earlier in the customer journey. For example, propensity models may flag which customers are most likely to respond to a retention offer, while risk models highlight which applicants require additional checks before approval.

“Hyper-personalisation is not about showing different banners on a web page. It is about aligning every decision across marketing, risk, fraud, and service so that customers feel recognised and treated fairly, whether they are opening an account, filing a claim or restructuring debt.”

SAS technology enables BFSI organisations to orchestrate these decisions across channels, including mobile apps, contact centres, the web, branches and partner touchpoints. This helps eliminate conflicting messages, such as a collections call arriving after a renewal offer, or a high-risk transaction being approved in one channel while blocked in another.

Real-time

decisions at

scale

A key theme, according to MacDonald, is the importance of real-time decisioning. Customers expect instant responses, whether they are applying for a loan, requesting a quote or disputing a transaction. Batch-based processes cannot meet these expectations.

“In modern BFSI, real-time has become the baseline. Enterprise customer decisioning gives banks and insurers the ability to evaluate context and risk within milliseconds, then trigger the right action, whether that is an approval, a step-up authentication, a fraud alert, or a tailored offer,” he says. MacDonald points to industry use-cases where integrated decisioning can help financial institutions increase cross-sell effectiveness, reduce churn, and improve loss ratios in insurance, while also cutting operational costs through smarter automation.

Preparing for the next wave of disruption

In terms of the impact of artificial intelligence (AI), including generative AI on customer decisioning, MacDonald cautions that new capabilities do not remove the need for governance. Instead, they emphasise transparency, model management and ethical guidelines. “As AI becomes more embedded in front-office and back-office decisions, the institutions that will thrive are those that treat governance as part of the design, not an afterthought. Enterprise decisioning gives them a foundation where every model and rule is visible, explainable and governed across the organisation.”

He adds that SAS is working with banks and insurers in South Africa and across the region to modernise legacy decision flows, connect siloed systems, and prepare for new regulatory expectations on fairness, explainability and resilience.

“SAS’s role is to bring proven platforms, domain expertise, and an integrated view of the customer so that BFSI leaders can act with confidence,” concludes MacDonald.

Why your next benefits strategy must be digital-first

By Shaun Raizenberg Employee Benefits Consultant at Essential Employee Benefits

For decades, employee benefits were straightforward – medical aid and retirement plans formed the backbone of most workplace offerings. While these benefits remain important, they no longer reflect the realities of today’s workforce. Employees expect more than a safety net; they want support that improves their quality of life, reduces stress, and helps them thrive. The rise of digital innovation, Artificial Intelligence (AI), and health tech is pushing companies to rethink their strategies, offering smarter, more dynamic solutions that meet the evolving needs of a modern workforce.

AI and wearables: From passive cover to active care

One of the most striking changes is the way technology is transforming employee wellbeing. Wearable devices that track heartrate variability, sleep patterns, and stress levels are giving employers and employees unprecedented visibility into health trends. Instead of waiting for problems to arise, AIdriven platforms analyse this data in realtime to provide proactive recommendations. Imagine an employee receiving a gentle nudge to take a break because their stress indicators are climbing, or a personalised sleep improvement plan based on their wearable data. This shift from reactive to proactive care reduces the risk of burnout and empowers employees to take charge of their wellbeing.

Why forward-thinking providers matter more than ever

Globally, the benefits landscape is becoming more holistic, focusing on physical health, financial wellbeing, mental resilience, and work-life balance. South Africa reflects these same trends but with a local twist. With healthcare systems stretched by limited resources, workforce gaps, and rising disease burdens, businesses cannot rely solely on traditional solutions. Here, technology is not just an added perk, it can play a pivotal role in bridging systemic gaps. AI-enabled telehealth, for example, can expand access to medical expertise without requiring additional infrastructure, providing employees with quicker, more affordable care options. The complexity of this landscape means businesses cannot tackle it alone. Partnering

with innovative benefits providers ensures companies have access to the latest tools, data, and insights. These partnerships allow organisations to deliver benefits that are not only competitive but also relevant. A company that offers an integrated, tech-enabled benefits package signals to potential hires that it values employee wellbeing as much as performance. This is no small factor in an era where talent retention is one of the most pressing business challenges.

Digital tools: Democratising healthcare access

The promise of digital tools lies in their ability to make healthcare more affordable and accessible. Virtual consultations, personalised health apps, and AI-driven risk assessments reduce barriers to care, particularly for employees who might otherwise delay seeking help due to cost or location. Data-driven insights also help employers allocate resources more effectively. For instance, predictive analytics might reveal a trend of rising stress levels within a specific team, prompting early interventions such as wellness workshops or workload adjustments before absenteeism spikes.

What businesses can do to future-proof benefits

Future-proofing employee benefits is less about chasing every new trend and more about building flexibility and resilience into strategy. Companies can start by gathering insights into employee needs through surveys, usage data, and feedback loops. From there, the goal should be to create benefit packages that are both personalised and adaptable. Offering flexible work arrangements, financial

planning resources, and access to mental health support are no longer luxuries but essentials. Layering technology on top of this, AI-enabled health monitoring, digital claims processing, and predictive analytics can streamline administration and make benefits more impactful.

From transactional to transformational

What separates the benefits strategies of the past from those of the future is impact. Transactional benefits, such as points and cash back, were designed to provide short-term cover in specific circumstances. Today’s employees want something more transformational – long-term strategies that promote health, stability and growth. Investing in healthcare analytics, for example, allows companies to identify risk factors early and support employees in managing chronic conditions. Likewise, AI-driven wellness tools can encourage healthier habits and reduce the likelihood of long-term health issues. This evolution from transactional to transformational is not just good for employees, it is a business advantage.

“Technology is not just an added perk; it can play a pivotal role in bridging systemic gaps”

Anticipating the next wave

Technology and AI are not passing trends in the employee benefits space; they are here to stay. Companies that anticipate workforce trends and adapt their strategies accordingly will be better positioned to compete for top talent and weather future disruptions. By integrating AI, wearables, and health tech into their benefits packages, employers can create a truly holistic support system that aligns with both global trends and local realities.

Businesses that continue to rely solely on traditional benefits risk falling behind, while those that embrace innovation can unlock new levels of engagement, wellbeing, and performance. The choice is not whether to adapt, but how quickly. Partnering with trusted, forward-thinking providers, investing in technology, and focusing on long-term wellbeing are all essential. By embracing this new era of benefits, companies can move from simply offering cover to truly empowering their workforce. In doing so, they will not only attract and retain the best talent but also foster healthier, more resilient organisations ready to thrive in the digital age.

AHow Jupiter Asset Management uses AI, without losing the plot

rtificial intelligence may be transforming the investment landscape, but for systematic fund managers, the rise of machine learning has brought as many risks as opportunities. Bias, bad sampling, misinterpreted signals, and the sheer volume of noisy data now threaten to derail investment strategies that appear ‘cutting-edge’ on the surface.

For Matus Mrazik, Investment Manager: Systematic Equities at Jupiter Asset Management and Portfolio Manager of the Old Mutual Global Equity Fund – winner of the 2025 INN8 Invest Diamond Award for Best Global Equity General – the lesson is clear: the real competitive edge does not lie in AI for AI’s sake, but in disciplined research, rigorous testing and human oversight. “The job is quite simple and yet super difficult: we try to come up with the best possible predictions for what’s going to happen next,” he says. And prediction, he notes, becomes exponentially harder when the data itself becomes distorted.

Where AI helps, and where it hurts

In the investing world, AI has become shorthand for innovation. But Mrazik is quick to challenge that assumption. “More data isn’t always better – unless you truly understand the noise, it can be more harmful than useful.” The challenge is not access to data but understanding the structure behind it. Financial markets generate enormous volumes of unstructured information, such as analyst notes, earnings calls, company commentary, and sentiment. Without careful filtering, algorithms simply amplify the noise.

That’s why Jupiter’s team leans heavily on statistical learning – a discipline that emphasises hypothesis-driven research and validation across different regimes and environments. “In the context of financial data, machine learning shouldn’t be treated as a black box,” Mrazik explains.

It requires framing clear economic hypotheses, testing them on out-of-sample data, and repeatedly validating that they continue to hold under shifting market conditions. “We don’t try to predict macro events because it’s impossible; instead, we listen to what the market is telling us through observable variables.”

Why human oversight still matters

With AI tools advancing at extraordinary speed, maintaining intellectual property has become an unexpected challenge. “With all the coding tools now, you can write the code immensely quickly, which makes protecting intellectual property a real challenge,” says Mrazik. This is one of the reasons Jupiter keeps human oversight at the centre of its research process. “We try not to fully rely on AI because we believe there still needs to be human oversight.”

And while models can pick up patterns at scale, Mrazik reminds us that human interpretation remains essential. “Models learn, but insights belong to people – at least for now.”

Building the next generation of systematic investing

Behind the scenes, Jupiter’s Systematic Equities team engages in deeply technical work. One example is the use of NLP (Natural Language Processing) to convert vast volumes of qualitative content, including analyst reports, management commentary and sentiment signals, into structured, investable data.

But none of this is implemented automatically. Research from the team’s collaborations with academics across AI, behavioural finance and econometrics is added to the investment framework only when it reliably enhances alpha generation or risk-adjusted returns. “Our job is to outperform the benchmark, and we are fully accountable for every single decision we make,” Mrazik explains.

That accountability drives the team to differentiate itself deliberately. “We’re not only in the business of being better; we’re in the business of being different, because if everybody’s the same, the market breaks.”

It’s a reminder that systematic investing is not a race to adopt the newest algorithms – it’s an arms race in which clarity, discipline and conviction matter more than speed. “Success is probabilistic; we know how much we don’t know, and that’s what keeps us pushing to stay ahead in this arms race.”

The bottom line for advisers

For financial advisers, Jupiter’s experience offers several practical lessons:

• AI is powerful, but not a shortcut. Its outputs are only as good as the hypotheses behind them.

Noise is the new risk. More data can worsen outcomes unless interpreted carefully. Human judgement remains irreplaceable. Oversight, accountability and intellectual clarity matter more than ever.

• Differentiation is a necessity, not a luxury. In a world where algorithms converge, unique insight becomes the real source of alpha.

As AI reshapes investing, systematic managers like Jupiter are proving that true innovation doesn’t replace human expertise, it just sharpens it.

“More data isn’t always better –unless you truly understand the noise, it can be more harmful than useful”

What clients really want from a funeral policy

By Sandy Welch Editor, MoneyMarketing

MoneyMarketing spoke to Andrew Codd, Lead Specialist: Funeral Solutions at Liberty about the current state of the South African funeral policy market.

How would you describe the funeral policy market? Has consumer demand changed in recent years, and if so, what’s driving that change?

The current funeral policy market reflects a healthy level of competition driven by a deeper understanding of these financial services products among consumers. There’s undoubtedly greater awareness of how these products work and what else is available in the market. Coupled with strong Regulatory Standards, this has led to a vibrant and dynamic market that is highly geared towards customer needs and security. Insurers and their product offerings need to be on top of their game to attract and retain customers. And many of these customers own policies across several insurers, so any underperformance by one becomes that much clearer.

What shifts have you seen in consumer behaviour?

There are large segments of the market where buying behaviour has remained largely static, but also an emerging middle to affluent class that has retained its intrinsic funeral needs but is able to afford more cover and more covered lives. Various add-on benefits (memorial, catering, repatriation) have also become popular as a result.

How has economic pressure and affordability influenced uptake and policy design?

Affordability has always been an issue in this market segment, and in addition there is an element of saturation here – funeral cover has the highest penetration of all financial services in South Africa. Product design in recent years has focused strongly on flexibility, giving consumers the ability to increase/decrease cover and to add/remove benefits according to their financial capacity. In addition, payment flexibility has improved in an attempt to retain customers, with premium skips more prevalent. Standard Bank has a unique Cover Extender feature enabling some cover to be retained for up to six months of missed premiums. Cashback benefits have become more popular as consumers see this as a mechanism to get some money back without a death claim.

What demographic groups are you seeing the strongest growth?

South Africa has a strong emerging middle class, retaining the same core values and funeral insurance needs they’ve always had. For this segment, we are seeing much larger average premiums, reflecting increased demand for funeral cover and for more covered lives. However, our product design also needs to cater for the entry level and so we are seeing more modular (‘build your own’) designs replacing the older packaged products. You no longer have to include added features you can’t afford, and the entry-level market can easily purchase fairly basic funeral cover and then build on it as wealth and affordability improves.

Funeral cover is often seen as highly commoditised. How are you differentiating your offering?

Our design and processes reflect a level of excellence at the top end of the market. We offer the highest levels of cover, unlimited family members, various relevant add-ons such as memorial, catering, repatriation, airtime and cashback benefits, and a slick onboarding process, coupled with speedy claims payouts. Nearly 70% of claims are paid within four hours, and most of those are within two hours – and a unique payment flexibility feature enabling missed premiums up to six months while some cover is still retained. Any one of these would be a huge competitive strength, but the combined effect is a major differentiator.

What product innovations (such as digital claims, value-added services or lifestyle benefits) are helping insurers stay relevant to modern clients? Many of the additional optional benefits are relevant to funeral-related needs, such as a catering or grocery benefit. These reflect the subtle nuances across our country’s diverse cultures and are optional because they will be relevant to some and not others. Digitisation is a major influence in all markets – where fast claim payouts are critical to our clients, we step up with a digital process and over half our claims are paid in two hours.

How is digital technology transforming funeral insurance, from onboarding and underwriting to claims processing and client engagement?

Digital tech has many impacts, making the market more efficient and customer friendly. Specific examples would be more automated processes (reducing errors and increasing onboarding speed), faster claim settlements coupled with streamlined processes, and digital platforms via apps or portals allowing customers to manage their policies and access information. There are also AI-driven chatbots giving customers support at all times, not just in office hours. Fraud analytics have vastly improved in the digital world, making this market more secure for the customer and the insurer.

How important are advisers in educating clients and ensuring adequate cover?

As much as there have been vast strides in digitisation, there are large portions of the market preferring face-to-face engagement. Advisers are key for these consumers to provide the comfort they require and to explain the products and their benefits. Advisers can also highlight any insurance gaps for the customer and guide them accordingly. Not everyone is comfortable with a purely digital approach – for these customers, an adviser can fulfil a core requirement.

How do you build and maintain trust?

This requires a multi-pronged approach to restore and build faith where much of the market has had unfortunate experiences. The first is at the start of the client relationship – we ensure all marketing/advertising is accurate and not misleading, and we’ve also worked significantly on making sure our policy documents are easy to understand. Claim settlement must be accurate and fast, as must customer support and the resolution of any complaints. We also build trust through extensive financial education and ensuring full Regulatory compliance.

By Hilary Dudley Managing Director of Citadel Fiduciary

ADelayed inheritance is key to preserving family wealth

cross the world’s wealthiest families, the transfer of assets from one generation to the next is rarely straightforward. History shows that without patience, delayed gratification, stewardship and discipline, fortunes can evaporate as quickly as they are made. The responsibility of managing and preserving wealth goes far beyond financial planning; it demands a long-term vision that equips heirs to steward assets responsibly.

This theme resonates in South Africa (SA), where rising life expectancy, extended retirements, and global migration patterns within families are reshaping the landscape of intergenerational wealth transfer. According to Cerulli Associates, R1,817tn is expected to change hands globally by 2048, much of it flowing through high-net-worth families. Closer to home, SA’s life expectancy has climbed to 64 years for men and nearly 70 for women, with affluent families often living well into their 90s. In addition, the average age of retirement has dropped from 70 to 60 or 65, meaning people can now foreseeably spend a full third of their life in retirement – a factor that has multiple implications for wealth transfer to the next generation.

As we live longer, families are juggling wealth across three and sometimes four generations.

By Mariska Redelinghuys Legal Specialist: Advice, PSG Wealth

Instead of receiving inheritances in their 40s or 50s, many heirs only inherit much later in life, often when they are already retired themselves.

Why delay can be a safeguard

While delayed inheritance poses challenges earlier in the life of heirs, as they are forced to make their own financial way, it can also protect families from premature depletion of wealth. When children are encouraged to build their own skills, creativity, careers and independence, they gain a deeper respect for money and are less likely to waste it. In my experience, those who wait often become more grounded, well-rounded individuals who contribute meaningfully to society.

Citadel’s advisers see many families navigating a measured approach: supporting education, property, or business ventures without transferring the bulk of wealth too early.

Parents derive immense satisfaction from seeing the next generation benefit while they are alive, but it’s vital to strike a balance. Too much too soon risks creating dependency and stifling creativity and self-reliance.

Managing complex estates across borders

As families become more global, wealth planning

must also adapt. It’s impossible to foresee every permutation across multiple generations and jurisdictions. The key is flexibility – appointing the right trustees, setting out shared family goals, and ensuring custodians have the ability to respond to changing laws and circumstances across various jurisdictions.

Tools for measured, considered preservation of wealth

Trusts, structured wills and professional advisory services are the most effective tools for long-term wealth preservation. Trusts allow for measured, considered transfer of wealth while protecting assets from unnecessary risks. Careful drafting ensures they can evolve with the times. When supported by experienced advisers, families can avoid financial surprises at moments of bereavement, when they are most vulnerable.

Ultimately, avoiding discussions about inheritance can be the greatest risk of all. Don’t be afraid to talk about the ‘D word’ with your family. Death and dying are inevitable for us all and by normalising those conversations, we also normalise discussions about finances. It ensures everyone is equipped and legacies are managed without added shock or strain.

Estate planning considerations for offshore assets

While offshore investing offers South African investors a greater investment landscape and muchneeded diversification, investors need to be aware of the complexities of taking funds offshore – including the way offshore assets are treated on death.

The role of probate

Looking beyond our own borders, it’s crucial to understand that each jurisdiction’s rules in respect of probate differ, which adds to the complexity of winding up global estates. However, the impact of these complexities can be managed effectively by consulting with specialist advisers and selecting appropriate products. One popular solution is to invest in products that allow for beneficiary nominations, such as offshore sinking funds or endowments. The proceeds of these investments can be paid out directly to the beneficiaries when the investor passes away, instead of being subject to an onerous winding-up process.

Offshore wills

Another consideration for investors with offshore assets is the need for an offshore will or a worldwide

will. A ‘worldwide will’ refers to a will that is drafted in South Africa in accordance with South African laws that includes the appointment of a South African executor to ensure that the deceased’s assets, wherever they are located, are distributed in terms of the will. However, just as probate procedures vary by jurisdiction, so too do each jurisdiction’s laws of succession.

The cornerstone of South Africa’s succession laws is what is known as ‘freedom of testation’ – a principle which, with the exception of a few limitations, allows an individual to leave their property to any person or institution of their choice. In contrast, many other jurisdictions have a system of ‘forced heirship’ in terms of which certain protected heirs (such as spouses and other family members) will inherit your estate, regardless of what is stipulated in your will. This means there is a risk that the wishes in a worldwide will may not be enforceable in certain jurisdictions – either due to laws such as forced heirship or because the will lacks specific clauses required for the will to be recognised.

In addition, a local executor may not be familiar with the rules of probate of a particular jurisdiction and may need to account for this by appointing an agent at a cost.

For all the reasons discussed, it is usually recommended that investors draft a will in each jurisdiction in which their assets are located, unless a

specialist advises otherwise based on the jurisdiction or the nature of the assets.

Situs – why multiple taxes could apply

Regardless of where a will is drafted, there are also tax implications to consider. If a deceased person was ordinarily resident in South Africa during the 12 months preceding their passing, their estate will be liable for estate duty in South Africa on their worldwide assets and deemed assets. Other jurisdictions, including the US and UK, levy death taxes based on what is known as ‘situs’, which refers to where assets are located for tax purposes. This means that if, for example, a South African resident owned property in both South Africa and in the UK or US, their estate would be liable for taxation in two jurisdictions in respect of the same asset, namely estate duty in South Africa and either inheritance tax (in the UK) or federal estate tax (in the US).

Although there are estate duty agreements in place between South Africa and these jurisdictions that allow for a tax credit to be claimed back by the executor, such examples serve to point out the importance of appointing an experienced and knowledgeable executor and consulting with a specialist adviser who understands the liquidity implications of paying death taxes in more than one jurisdiction.

By Jashwin Baijoo Partner and Head of Strategic Engagement & Compliance at Tax Consulting SA

ANew reporting standards spell the end for crypto-tax evaders

s the cryptocurrency market rapidly expands and the global financial landscape evolves, tax authorities worldwide are intensifying their efforts to maintain transparency and combat tax evasion. Compliance is essential for financial institutions and crypto service providers, and any evasive tax strategies will be unravelled by the South African Revenue Service (SARS).

South Africa’s adoption of the Organisation for Economic Cooperation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) and an updated Common Reporting Standard (CRS) represents a significant advancement in compliance with international tax standards, and the eradication of cryptotax evasion. The implementation of these regulations aims to foster the automatic exchange of tax-related information concerning both traditional financial assets and emerging crypto-asset classes.

CARF and CRS explained

As South Africa prepares to implement the world’s most comprehensive international tax transparency frameworks on 1 March 2026, significant changes in financial and crypto-asset reporting are anticipated. These regulations introduce strict disclosure and due diligence requirements for financial institutions and crypto service providers.

Crypto-Asset Reporting Framework (CARF)

The CARF, outlined in Government Gazette No. 53735 (Notice R.6887) on 28 November 2025, details the obligations for reporting crypto-asset service providers regarding crypto transactions and user identities. This framework aims to combat offshore tax evasion and illicit activities linked to crypto-assets through enhanced multilateral cooperation and automatic information exchange.

The CARF imposes obligations on all ‘Reporting Crypto-Asset Service Providers’, including businesses or individuals that offer crypto exchange services, custody, or trading platforms:

• Identifying the entities and individuals who are subject to data collection and specific reporting requirements

Promoting tax transparency on reportable transactions

Implementing iron-clad due diligence procedures and guidelines for identifying Crypto-Asset Users and Controlling Persons, and their reporting obligations in relevant jurisdictions

They must validate user tax residency through self-certifications and retain documentation for a minimum of five years

• Non-compliance may lead to suspension of customer relations and potential penalties for tax evasion.

As a crypto-trader, the days of thinking your crypto assets are beyond SARS’ purview are long gone – be it locally or offshore, the automatic exchanges of information leave noncompliant individuals vulnerable to penalties, asset freezing and even potential prison time.

Common Reporting Standard (CRS)

The updated CRS, found in Government Gazette No. 53735 (Notice R.6886), governs the automatic exchange of financial account information globally. From March 2026, South African financial institutions must fully comply with stringent enhanced due diligence and reporting demands. The revised CRS is aimed at bringing new financial products, intermediaries and financial assets into its scope, which includes certain electronic money products and Central Bank Digital Currencies.

It is noteworthy that the investigation into South African taxpayers’ offshore interests has long been on the cards with SARS, with foreign asset/income disclosure notices being issued as far back as 2020, entailing a blanket disclosure of offshore assets. Alongside crypto regulations, South Africa strengthens its compliance framework under the CRS for traditional financial accounts held by foreign residents.

Financial institutions including banks and investment entities must conduct enhanced due diligence to identify Reportable Persons

• Account reporting will encompass balances, gross interest and dividends.

The importance of immediate compliance

The CARF and CRS are not mere guidelines, but mandatory rules that will fundamentally alter reporting practices.

• South Africa engages in multilateral agreements for data exchange, magnifying exposure to unreported accounts

SARS’s enforcement capabilities include penalties, relationship terminations, and criminal prosecution.

SARS and SARB team up

SARS and the South African Reserve Bank (SARB) – through existing working groups and international exchanges of information, now strengthened through the implementation of the CARF and CRS regulations – have reiterated their already strong stance on eradicating non-compliance. This includes a keen focus on crypto asset taxation and rectifying historic taxpayer issues of

non-declaration of crypto-related profits or gains, albeit without providing firm guidance to the average taxpayer.

The historically common misconception among taxpayers that crypto profits or gains fall outside the South African tax net, has been addressed by the revenue collector and exchange control gatekeeper on numerous occasions. In short, taxpayers must be aware that crypto-related activities, even though on-platform, and perhaps not realised for fiat gain, do carry with them stringent reporting requirements, including declaration and payment of taxes due on the benefits derived thereon.

“As a crypto-trader, the days of thinking your crypto assets are beyond SARS’ purview are long gone”

How to avoid trouble

Tax compliance starts with assuming liability for all income received and maintaining accurate financial records. SARS will expect individuals to prove the accuracy of their tax position, and it is therefore imperative to keep accurate record of transactions. Authorised Dealers, usually commercial banks, are authorised by SARB to deal with foreign exchange. Where large amounts of money or complicated transactions are involved, Authorised Dealers may defer to specialist teams within SARB to handle such transactions. To ensure SARB compliance, the exchange control requirements and regulations should be heeded.

To avoid the inadvertent accumulation of tax debt, crypto investors and traders are advised not to take matters into their own hands but to seek professional assistance; it remains the best strategy to ensure compliance. Where you find yourself on the wrong side of SARS, there is a first mover advantage in seeking the appropriate tax advisory, ensuring the necessary steps are taken to protect both yourself and your festive spirit from paying the price for what could be the smallest of mistakes. However, where things do go wrong, SARS must be engaged legally.

By disclosing crypto-related proceeds, under the SARS Voluntary Disclosure Programme (VDP), taxpayers can mitigate penalties, risk of criminal prosecution, and regularise their tax affairs, in one fell swoop.

From compliance to competitive advantage

Marking 10 years of analysing the disclosures of the top 100 JSE-listed companies by market capitalisation, this year’s PwC South Africa's Building Public Trust Through Tax Reporting study shows a clear shift: tax transparency has moved beyond a compliance requirement to become a strategic lever for trust, stronger governance and long-term value creation.

From obligation to opportunity

This report is released at a critical time when corporate governance is top of mind for South African companies. The recently published King VTM Report on Corporate Governance for South Africa 2025 (King V) calls for a shift from aspirational vision to practical accountability, from long-term ambition to immediate responsibility. At the same time, South African companies are at a pivotal moment in their sustainability reporting journeys. Broad adoption of the Integrated Reporting Framework, and increasingly widespread use of global standards, have set a solid foundation. Yet momentum is accelerating as regulatory expectations rise and stakeholder demands intensify, prompting companies to focus on what is material and measurable.

“A decade of tax transparency research in South Africa has shown us that tax is a material consideration. When integrated into broader strategy, it can help businesses anticipate fiscal changes, manage risk, and support long-term resilience. Companies that can clearly communicate their tax story don’t just demonstrate good governance and a commitment to sustainable development. They recognise that tax transparency is inseparable from ethical business practices and foundational to building stakeholder trust, which is critical for long-term success,” says Carla Perry, PwC South Africa Tax Reporting and Governance Director.

A framework for robust tax governance

The findings of this year’s study are considered in the context of the four governance outcomes outlined in King V, signalling a decisive shift toward outcomesbased governance evaluation – one that emphasises real, measurable results rather than tick boxes.

Ethical culture anchors all four outcomes. It shapes how organisations achieve performance and value creation, ensure conformance and prudent control, and earn legitimacy. Performance drives innovation, but without ethical guardrails it can lose direction and drift off course. Conformance maintains discipline, but without purpose it can become restrictive. Legitimacy builds stakeholder confidence, but it endures only when ethics are embedded and authentic.

Together, these outcomes position tax governance as a strategic asset. Companies that align tax practices with ethical culture don’t just meet expectations, they set new standards. They turn transparency into a competitive advantage, drive sustainable impact, and build trust.

To boards and other governing bodies, the mandate is clear: own the tax strategy, explain how tax contributes to the company’s value, and how the company’s tax conduct affects the wider economy and society.

Why tax transparency matters now more than ever

Amid a rapidly evolving sustainability landscape, tax transparency remains a critical focus. Investors, regulators, employees and communities expect clear, credible

“Tax transparency is inseparable from ethical business practices”

insights into how organisations contribute to public finances and manage fiscal risks. When integrated into strategic decisionmaking, tax transparency enables: Better risk management, through anticipation of fiscal and regulatory change Stronger long-term resilience, by aligning tax practices with sustainable business models

• Greater innovation and efficiency, where tax strategy supports growth priorities

Enhanced talent attraction and retention, as purpose-driven organisations appeal to purpose-driven people.

This year’s findings provide timely guidance to help businesses navigate increasing complexity in tax reporting. “Most large, listed companies in South Africa still aren’t disclosing detailed tax information, even when global frameworks are there to guide them. It’s not just a gap. It’s a critical opportunity to step up. Our goal is to help organisations recognise transparency not as a burden but a strategic tool to enhance reputation, unlock value, and drive better outcomes,” says Mbai Rashamuse, PwC South Africa Tax and Legal Services Leader.

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