MoneyMarketing November 2025

30 NOVEMBER 2025

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ISSUE:

RETIREMENT FUNDS

From the state of two-pot to the timing of retirement withdrawals, we investigate the issues driving the South African retirement landscape.

Cover story + 9-12

MEDICAL AID DECISIONS FOR 2026

As medical schemes announce rate and benefit changes for 2026, clients are looking for more than affordability – they want cover that aligns with their values, lifestyle and priorities.

Pg12-15

VENTURE CAPITAL

While it gives investors access to high-growth potential opportunities, venture capital also comes with its own unique risks. We take a closer look at the pros and cons.

Pg16-17

OFFSHORE INVESTING

Navigating the regulatory requirements, tax implications and currency volatility associated with offshore investing demands careful, well-informed advice.

Pg20-25

INCOME PROTECTION INSURANCE

Income protection remains one of the most underappreciated yet essential elements of a sound financial plan. Advisers need to be fully informing clients on the value of this cover.

Pg27-29

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How longevity and wellness are reshaping retirement planning

By Sandy Welch Editor, MoneyMarketing

Retirement in South Africa is at a crossroads. While the industry continues to grow, a sobering reality remains: the vast majority of South Africans are not financially prepared for life after work.

“Various surveys from major industry players indicate that as many as 90 to 95% of people don’t have adequate retirement funding,” says Kenny Rabson, CEO of Discovery Invest. “It’s quite binary because there are those who are well-off with sufficient assets, and then a very large portion of the population who simply aren’t on track.”

Rabson explains that the local retirement industry operates across two major pillars: the institutional space, where employers manage pension and provident funds for their staff, and the retail space, where financial advisers help individuals invest through retirement annuities and preservation funds.

“Both are huge industries,” he says, “but across the board, we’re seeing that individuals are carrying more of the risk for their own retirement outcomes.”

How the landscape has changed

That shift from defined benefit to defined contribution schemes, where individuals decide how much to contribute and how to invest, has fundamentally changed the retirement landscape. “With defined contribution, the risk sits squarely on the shoulders of the employee,” Rabson notes. “You’re choosing how much to save and where to invest, and just hoping that by retirement, the fund is of reasonable size. The man in the street is carrying all the risk.”

Adding to this dynamic are significant legislative developments, most notably the introduction of the two-pot system. “It has pros and cons,” Rabson acknowledges. “On the one hand, it gives people who are in real financial distress the ability to access funds. On the other, it risks people dipping into savings unnecessarily and damaging their long-term outcomes. But overall, it encourages more preservation and that’s positive for the industry over time.”

Other regulatory shifts, such as the recent changes to Regulation 28, are also reshaping how retirement funds are managed. “Reg 28 defines what assets can be held in a retirement portfolio,” says Rabson. “Managers now have more freedom, so for example, they can allocate up to 45% offshore. This means we’ll

start seeing greater variability in returns between funds, as managers take different views on currency, asset class and geography.”

This, he believes, is a step in the right direction. “It’s positive that asset managers have the freedom to apply their best thinking,” he says. “And I think pressure will continue to build to evolve Reg 28 even further. Private markets, for instance, are becoming a much bigger part of the global investment landscape. If you’re only looking at listed equities, you’re playing in a shrinking part of the market.”

At the same time, tax considerations continue to influence how South Africans save. The annual cap of R350 000 on deductible contributions, Rabson notes, has had unintended consequences. “For high-income earners, it’s a real disincentive,” he explains. “They’re asking, ‘Why lock up my money if I’m not getting the tax deduction?’ So, we’re seeing more voluntary, discretionary investments being made outside of retirement funds.”

A change in behaviour is essential

The combination of legislative reform, shifting investment dynamics and persistent savings gaps makes one thing clear – South Africa’s retirement system is in flux. And while there are positive structural shifts underway, Rabson cautions that the biggest challenge remains behavioural. “The earlier you start saving, the better the outcome,” he says. “But for many young people, that’s difficult because they have debt, family responsibilities and short-term aspirations. Yet the cost of waiting is enormous. Start late, and the percentage of your income you need to save skyrockets.”

Rabson believes that education and behavioural change remain the most pressing challenges in South Africa’s retirement landscape. “People need to understand the burden of retirement,” he says. “You must start early, save the right amount and resist the temptation to cash out your savings when you change jobs. That’s where financial advisers play a critical role. They can help people stay disciplined and make decisions that protect their long-term financial security.”

Economic pressures, however, often get in the way. High interest rates, inflation and stagnant wage growth are making it harder for South Africans to save. “It’s very correlated,” Rabson notes. “When interest rates are high and people are under pressure, they tend to stop their voluntary investments.

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Continued from previous page

“They’ll keep their health insurance and life cover, but retirement savings are often the first to go. And what we’ve seen is that many never start again once they’ve stopped. That’s a real concern.”

Periods of crisis, such as Covid-19, have made this clear. “During the pandemic, almost all the major players offered contribution holidays,” he recalls. “Some people used those breaks and managed to restart later, but many didn’t. Events like that can have a longterm effect on retirement adequacy.”

The future of retirement

As the industry continues to adapt to new regulation and shifting savings behaviour, another powerful force is quietly reshaping how financial advisers think about retirement: longevity. Advances in medicine and technology mean that people are living longer – sometimes far longer – than the financial plans designed decades ago ever anticipated.

“Longevity is something advisers have never really been used to thinking about,” says Rabson. “But in the future, they’ll need to plan around it very carefully. Medical technology is improving, and people are living longer, healthier lives. That means you can’t assume that retirement at 65 is still realistic for everyone. Financial plans have to stretch much further.”

Going beyond the traditional Traditional retirement planning tools tend to focus on generic assumptions such as investment growth rates, inflation and contribution levels. Discovery Invest’s approach adds an entirely new dimension. “Our models take into account things like vitality status, chronic medication and lifestyle habits,” Rabson explains. “That allows advisers to plan for longevity risk in a much more accurate way. We can reward people for living healthier lives, and those who do end up funding their own incentives, because they grow larger retirement pots and draw down less in retirement.”

The Lifespan Linked Income Plan also reflects Discovery’s broader strategy to align incentives between members and the provider. “If you’re healthy and you manage your money well, we reward you,” says Rabson. “For example, someone drawing down R10 000 a month could receive an income boost of R5 000 if they’re a Diamond Vitality member. Over time, that creates the right behaviour so people are encouraged to save early, live well and draw down responsibly.”

“Education and behavioural change remain the most pressing challenges in South Africa’s retirement landscape”

This reality has significant implications for how individuals save, how long they work and how employers approach retirement policies. “Globally, we’re seeing a rethink of the traditional retirement age,” Rabson explains. “In South Africa, some companies are already becoming more flexible, allowing employees to work beyond 65, reviewing it annually instead of forcing retirement. But it’s a balance – you want to retain experience and skills, while also creating space for younger workers to enter the economy.”

Against this backdrop, Discovery Invest is pushing hard to reimagine retirement solutions by integrating its deep understanding of health, wellness and financial behaviour to create a more holistic approach. One of its latest innovations is the Lifespan Linked Income Plan, which builds longevity protection directly into its design.

“What’s unique to Discovery Invest,” Rabson says, “is that no one else has the health and wellness data we do. Discovery Health and Vitality have the largest datasets of this kind in the country and they’re so rich that even global research houses use them. That gives us the ability to build tools that truly personalise financial planning.”

Perhaps the most innovative aspect of the product is its builtin longevity underpin. From the age of 80, members begin receiving a guaranteed income for life, which ensures their income never runs out no matter how much they withdraw, what funds they choose or what the market does. “It’s about peace of mind,” Rabson says. “People are understandably worried about outliving their money. This solution combines flexibility in early retirement with the security of a guaranteed income later in life.”

Discovery Invest’s vision for the future of retirement planning also centres on empowering advisers. Rabson is clear that personalised financial advice remains essential, but advisers need smarter tools to do it. “We’re building advanced tools for advisers,” he says. “For too long, retirement advice has been generic – a one-size-fits-all approach. But every client’s journey is different. We’re helping advisers create personalised plans that reflect an individual’s health, affordability, risk profile and other assets.”

This shift towards data-driven, individualised advice mirrors trends seen globally, where financial planning is becoming more predictive and behavioural. Just as medicine is moving towards personalised treatments, Discovery envisions financial advice that’s tailored to each client’s unique circumstances. “It’s the same principle,” Rabson says. “In healthcare, treatments are being customised for each person. Financial advice should be, too.”

ED'S LETTER

As we approach the close of another fastmoving year, November offers a moment to pause and take an intrinsic look at the advice profession. In this issue, we unpack the fundamentals that define success in the industry today. For those considering entering the field, or moving up in the profession, our feature on how to become a financial adviser explores the pathways, skills and purpose needed to help clients secure their financial futures. It’s so important for succession planning that more young people consider this option when choosing a career, and that those who have already started the journey look at upskilling.

With the two-pot retirement system now a reality, we take a closer look at how far it’s come, and what advisers need to know to guide clients through the complexities of preservation and access. We also explore medical aid strategies, income protection solutions, and how to balance long-term security with affordability, which is always a crucial part of client conversations at year-end.

Diversification remains top of mind, and our features on offshore investing and venture capital explore how to blend growth and prudence when constructing portfolios, especially in uncertain markets.

The common thread throughout this issue is purpose: helping South Africans make sound, sustainable decisions that protect not only their money, but also their wellbeing and peace of mind.

Here’s to finishing the year strong, with insight, empathy and impact.

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*.

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“Ultimately,” Rabson concludes, “helping people live longer, healthier lives is good for them and good for their investments. Longevity isn’t just about living more years; it’s about making those years financially sustainable.”

Jennifer Henry CFA, FRM Deputy Chief Investment Officer, STANLIB Multi-Manager and INN8 Invest

Jennifer Henry has spent nearly two decades shaping South Africa’s multimanager investment landscape. A former President of CFA Society South Africa, she combines deep technical expertise with a passion for governance, ethical leadership, and developing the next generation of investment professionals. As Deputy CIO at STANLIB Multi-Manager and INN8 Invest, she blends research, technology, and strategic oversight to build resilient portfolios – and resilient people.

How did you get involved in financial services –was it something you always wanted to do?

Not at first. I started my career in IT, first at South African Breweries and then at Nedbank, where I managed IT-related projects in call centres. It was only later, while leading business-process projects in Nedbank Capital, that I became fascinated by the adrenalinedriven world of stockbroking, with its foundation in industry and company analysis.

I made the move into financial markets when I joined Nedbank Stockbroking as an assistant analyst. From there, I built a research career that spanned media, IT and electronics – sectors undergoing profound digital transformation at the time. Those early years shaped my analytical mindset and reinforced the link between innovation, leadership, and long-term value creation. More importantly, I learned to combine blue-sky thinking with a realistic assessment of risk and valuation discipline.

Over time, I realised that I didn’t just want to analyse companies; I wanted to help shape how capital is allocated across them. That’s what led me into portfolio management in multi-management and ultimately to my current role as Deputy CIO – where I get to integrate research, governance, and strategy while leading exceptional people.

What was your first meaningful successful investment?

One that stands out was during my time as a sell-side analyst covering the media sector. Towards the end of 2008, Naspers was classified under Media and worth about USD5bn. I paid attention to a small investment it had made at that time in China called Tencent, and built a detailed model factoring in urban migration, internet usage, and potential revenue growth per user. That analysis became a key driver behind my buy-rating, which I issued when many were still jaded by the dot-com bubble. This type of differentiated insight established my reputation as a top-rated analyst.

Later, as a portfolio manager, I learned that meaningful success isn’t about a single trade. It’s about building a process that works consistently across market cycles – integrating qualitative insight with quantitative analysis and continuously testing one’s assumptions, especially during periods of underperformance.

What have been your best and worst financial decisions?

My best decisions have always been those rooted in patience, critical thinking, and deep analysis. In multi-management, conviction in your manager-selection process is everything. You can’t chase every quarterly winner; you build long-term partnerships with credible fund managers who execute on solid processes, manage risk effectively, and test their investment ideas through rigorous debate.

My worst decisions have probably stemmed from anchoring bias and backing managers who do solid fundamental work and expecting that alone to translate into strong alpha. However, these managers’ portfolios don’t always behave as expected. Continuously testing for alignment between people, philosophy, process and performance has been one of my most valuable lessons.

What are the biggest lessons you have learnt as a fund manager?

First, context matters. A great idea in isolation isn’t necessarily a great fit within a portfolio. The role of a portfolio manager is to understand the interplay – style, exposure, risk and liquidity –across managers and asset classes.

Second, culture and governance are as important as returns. You can replicate models and processes, but you can’t replicate culture. That’s why we spend so much time assessing the ‘soft’ factors when evaluating managers, such as their investment philosophy, decision-making culture, and how they handle dissenting views.

And lastly, resilience. I’ve learned both personally and professionally that recovery

isn’t linear. Whether it’s a market drawdown or a personal challenge, the ability to refocus, adapt and keep perspective is what sustains performance over the long term.

What makes a good investment in the current environment?

We’re in a world where macro and political uncertainty, climate transition, and the explosion of AI all intersect. Good investments today are those that are flexible, leverage technology, and have a growth mindset.

From a South African perspective, investors need to be pragmatic. Offshore diversification remains important, but there are also compelling opportunities locally in companies that are global by design.

“Culture and governance are as important as returns”

In the multi-manager space, we’ve seen the value of blending managers with distinct investment approaches rather than betting on a single philosophy to outperform across every cycle. That diversity is a true source of resilience.

What advice would you give young people who want to enter fund management?

First, only pursue a role in investment decision-making if you fully understand that you are making decisions about other people’s money, because it’s an enormous responsibility.

Stay curious and stay ethical. This profession rewards deep thinking, but it’s sustained by integrity and a strong work ethic. The CFA Program gave me both a broad and deep investment body of knowledge, while grounding me in ethics – something I now pay forward through mentorship and advocacy for young investment professionals.

Explore topics widely, not just finance. Behavioural science, history, and technology all shape markets. And most importantly, find joy in what you do. The best fund managers and analysts I know are energised by the work itself. If you approach it that way, you’ll never stop learning.

By Darren Robertson CFP® Owner Opes Wealth

SSo you want to be a financial planner? How to succeed

outh Africa has a huge advice gap. It’s estimated that around 80 to 90% of South Africans don’t have access to proper financial advice. Couple this with our relatively low household savings rate and high levels of consumer debt, and the need for more financial planners becomes acutely important.

Here I’m going to demystify some of what financial planners do, why the profession matters, and what it takes to succeed. Perhaps you are a new graduate or considering a career change, or even an earlycareer professional exploring financial planning as a profession – this advice will hopefully assist you on your journey.

Why financial planning matters

We live in a world where there’s an abundance of information. While this can be empowering, it can also be overwhelming and confusing. At the same time, there are more financial products available than ever before. The combination of too many options, conflicting information, and uncertainty about which sources to trust can easily turn the decision-making process into a minefield for clients.

When you add the complexities of retirement planning, effective estate planning and navigating tax laws, often across multiple jurisdictions, the need for professional, comprehensive financial advice becomes vital. A skilled financial planner not only helps clients make informed decisions but also plays a key role in improving their overall financial wellbeing through behavioural coaching, goal setting and guidance that helps them avoid costly mistakes.

Relationships between planners and clients are built on trust and communication. As planners we also help people through some of life’s most difficult challenges, such as retirement or dealing with the loss of a loved one, financial stress or planning for the next generation.

What does a financial planner actually do

This is something that is lost on many people, including clients and the public. Some of what financial planners do includes, but is not limited to:

• Building and reviewing financial plans

• Advising on investments, insurance, retirement, tax strategies, estate planning

• Explaining technical information in layperson’s terms

Financial coaching

Compliance and admin:

• Staying up to date with regulation and standards

• Documentation, file notes, compliance obligations

Ongoing service:

• Regular client reviews, portfolio updates, life event responses

• Managing expectations and behaviour over the long term

Technology and tools:

• CRM software, financial modelling tools, risk profiling

Teamwork:

• Working with paraplanners, admin staff, product providers, accountants and lawyers.

What it takes to become a financial planner

First off, there are qualifications and licensing requirements to become a financial planner. Undergraduate commerce degrees, although not mandatory, are beneficial. To progress to higher levels of financial planner and ultimately become a Certified Financial Planner Professional® or CFP®, an undergraduate degree will be essential as this is a post-graduate level qualification. You would also need to join the Financial Planning Institute of South Africa (FPI).

Secondly, there are what we refer to as “soft skills” of which the following are of the utmost importance:

• Emotional intelligence and communication skills

• Ethics and trustworthiness

• Analytical thinking and problem-solving

• Business development (if self-employed or building a book).

Even though finance knowledge and the ability to do analysis is crucial, interpersonal skills are often what make the best planners stand out from their peers.

The career path

Some planners join the industry or profession straight from university where they might have completed a commerce-related undergraduate degree followed by a post-graduate diploma in financial planning (CFP). However, there are also people who work, learn and study while they are on their career journey, and these people might follow a pathway from paraplanner to

EARN YOUR CPD POINTS

associate adviser to adviser to principal/partner or business owner.

Some planners choose to be generalists and others enjoy certain aspects of the financial planning environment, such as retirement planning, employee benefits, estate planning, offshore investments and many others.

Modern financial planners can also earn revenue by charging fees (fee-based), earning salaries in some practices, or the more traditional model of ongoing fee (often AUM- based) income.

Challenges and realities

As with any career or profession there are challenges such as regulatory frameworks that need to be adhered to, as well as high levels of admin. Early on, while building your own client base, work can include long hours. Managing difficult clients or market volatility can be a challenge at times, and it is also important to avoid ethical dilemmas, especially around conflicts of interest. I firmly believe these challenges are manageable with the right mindset.

Like any career, financial planning comes with its own set of challenges. These include navigating complex regulatory frameworks, managing extensive administrative work and, in the early stages, putting in long hours to build a client base. Managing difficult clients or market volatility can also test one’s resilience, and maintaining strong ethical standards, particularly around conflicts of interest, is crucial. However, I believe with the right mindset and a commitment to professionalism, these challenges are entirely manageable.

A meaningful and impactful profession

I love this profession. As financial planners we get to help and assist our clients in so many different facets of their lives. We not only get to become trusted advisers but also friends, and we add value and make a difference in our clients’ lives. If progressing in this career interests you, I’d recommend talking to other planners (more senior than yourself), seek out a mentor, research courses and read industry-related publications. You could also shadow a financial planner, do an internship, or attend an industry event such as the annual FPI Convention.

The FPI recognises the quality of the content of MoneyMarketing’s November 2025 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

The perfect path to a rewarding career

By Sandy Welch Editor, MoneyMarketing

“If you ask people how they became a financial adviser, nine out of 10 will tell you the same thing – the profession found them,” says Leanne Ferreira CFP® from Milpark Education. “Very few people set out to study financial planning from the word go. It’s a career that tends to find you, and ultimately, you find yourself in it.”

Financial planning, she explains, attracts a particular kind of person, generally someone who is curious, analytical and driven to help others. “It’s a career that blends people skills with problem-solving. You get to combine your passion for working with individuals with the ability to think strategically and plan for longterm goals. That balance is what makes it so rewarding,” Ferreira says.

Beyond the emotional fulfilment of guiding people toward financial security, the profession also offers strong earning potential, flexibility and independence, all qualities that make it increasingly appealing in today’s world of hybrid work. “Especially for women, it can be an incredibly empowering career,” she adds. “It offers the freedom to build a successful professional life while still allowing space for family and personal commitments.”

But while it’s a career that rewards empathy and intuition, it also demands a deep sense of responsibility. “As a financial adviser, you hold people’s financial futures in your hands,” Ferreira notes. “You’re guiding them through some of the most important decisions they’ll ever make, around retirement, risk or estate planning, and the onus is on you to give ethical, informed advice. That’s why continuous learning and professional development are so essential.”

The education journey

Once you’ve decided to become a financial planner, the next step is choosing an education path that builds both your technical skills and professional credibility. According to Ferreira, the key lies in formal qualifications that align with the industry’s professional body, the Financial Planning Institute of Southern Africa (FPI) and the Financial Sector Conduct Authority (FSCA) frameworks.

“At Milpark Education, we design our programmes to meet the FPI’s learning requirements and cover the Financial Planning Curriculum Framework at the appropriate level.”

That curriculum is shaped not only by industry standards but also by legislation and professional ethics. Ferreira explains that Milpark’s academic team – most of whom are Certified Financial Planner® professionals themselves – constantly review and update course material to reflect changes in tax laws, regulation and market realities. “Our content has to evolve every year,” she says. “Tax laws change, new frameworks like the two-pot retirement system come into effect, and suddenly your textbook from last year is outdated. So we rewrite, recheck and make sure our students always have the most current knowledge.”

From theory to practice

Financial planning is not a field where theory alone is enough. Ferreira believes that the most effective education is rooted in real-world scenarios. “We use examples drawn from the industry that include actual client situations our instructors have faced,” she says. “Our assessments don’t just ask students to recall facts; they must apply what they’ve learned. You can’t just tell me what’s in the Act; I want to know what you’d do with that information.”

“We offer the complete pathway from foundation to expert”

That emphasis on critical thinking and application is what sets the professional planner apart. Ferreira says the programme structure is designed to reflect that journey: “We offer the complete pathway from foundation to expert. You can start at entry level, build your foundational knowledge, and then move up through the Advanced Certificate, BCom and postgraduate studies. Graduating with a Postgraduate Diploma in Financial Planning meets the education criteria required to apply for the internationally recognised CFP® Professional Designation membership with the FPI.

For students balancing work and study, the programmes are flexible and fully online. “Most of our students already work full-time,” she notes. “Our qualifications are designed for distance learning, with live interaction, discussions, and ongoing support.” Depending on your path, an entry-level qualification can take about 18 months, while a BCom degree takes three years part-time.

Adapting to a digital future

As technology reshapes financial advice, Ferreira says education providers must help students navigate the changing world. “We’re fortunate to already be in the online learning space, so we use technology to enhance engagement and learning,” she says. “Our courses are immersive – you don’t just get a textbook and exam date. You participate in interactive learning, with live sessions and digital tools.”

That includes embracing artificial intelligence. “We teach students to use AI responsibly,” Ferreira explains. “For instance, we might ask them to prompt AI for a response, then analyse where it went wrong or how to improve it. It’s about understanding how to use it wisely because AI shouldn’t replace the human, but it can be an incredible tool.”

Lifelong learning and professionalism

Financial planning is a dynamic profession because legislation, products and client needs are always changing. Continuous learning is therefore not optional. Certified Financial Planner® professionals are required to complete 35 hours of Continuous Professional Development (CPD) each year to retain their designation.

“We offer a large selection of CPD short courses and regulatory programmes,” says Ferreira. “Whether you’re new to the industry, require a qualification to be compliant with the FAIS Act, or aiming for professional recognition, there’s something that fits your needs.”

Ferreira believes this constant evolution is what makes the profession both challenging and rewarding. “It’s not a career where you can ever stop learning,” she says. “Every client is unique, every solution is different, and every day brings something new. For those who are curious about the world and love solving complex problems, it’s an incredibly fulfilling profession.”

She adds that education has also helped elevate the industry’s reputation. “Financial planning used to have a poor image, but that’s changing. Regulation and professional standards have brought credibility. We want to professionalise the industry, so that advisers are not just salespeople, but trusted partners in their clients’ financial wellbeing.”

Ferreira smiles when she describes the role: “It’s like being a finance doctor because you diagnose, you treat and you walk the journey with your client. It’s a profession built on trust, knowledge and care.”

By Mike Adsetts Global Chief Investment Officer at Momentum Investments

SWhat South Africa’s two-pot System can learn from international retirement models

eptember marks one year since the implementation of South Africa’s two-pot retirement system, a reform aimed at balancing the need for long-term retirement savings with the immediate financial needs of individuals.

This dual-purpose framework, which allows partial access to funds while preserving the majority for retirement, brings South Africa in line with a global trend. While the system is new to our shores, many countries have navigated similar reforms, offering valuable insights into potential pitfalls and best practices. By examining international retirement models, we can better understand how to ensure the two-pot system delivers sustainable, positive investment outcomes for South Africans.

The global context: A universal challenge South Africa is not an outlier when it comes to reforming its retirement system. The challenge of striking a balance between liquidity and preservation is a universal one. As populations age and economic uncertainties rise, governments worldwide are looking for ways to protect long-term savings while providing a safety net for citizens in times of financial hardship.

Australia’s superannuation system, for example, is a globally recognised model for mandatory retirement savings. Introduced in 1992, it requires employers to contribute a percentage of an employee’s salary to a retirement fund. The success of Australia’s system lies in its compulsory nature, which ensures high participation rates and a substantial pool of capital for long-term investment. While it has faced its own challenges, including debates over early access during the Covid-19 pandemic, Australia’s model shows the power of consistent, disciplined saving. A key lesson for South Africa is that while partial access is crucial, it should not undermine the fundamental principle of longterm capital accumulation.

Chile’s pension reforms, initiated in the 1980s, provide a different, more cautionary tale. The country moved from a state-run system to a private, individually managed account model. While this reform led to an increase in national savings and a boom in capital markets, it also highlighted a major risk: the responsibility for investment outcomes falls squarely on the individual. This has often led to inadequate retirement incomes, particularly for low-income earners who may lack the financial literacy to make sound investment decisions. This experience highlights the critical importance of

robust financial advice and education to ensure individuals make informed choices about their savings and withdrawals.

Singapore and Malaysia – both countries where citizens have typically not saved enough for retirement – implemented provident funds with separate sub-accounts, ‘ringfenced’ for specific needs, such as housing and medical expenses. Lessons from Singapore and Malaysia highlight the challenge of balancing immediate financial needs with the goal of long-term savings.

"Empowered investors are those who can navigate the new retirement landscape with confidence”

Countries like the US, UK and New Zealand have successfully used a system with separate accounts – one for liquid savings and one for long-term retirement. This approach allows for limited early access without compromising the entire fund’s investment performance. While there is no perfect system, what many countries are realising is that allowing some limited early access can encourage more people to participate in and remain committed to retirement savings schemes. Key, however, is to manage the negative effects of early access while still promoting overall saving.

The importance of a sound investment strategy

South Africa’s introduction of the two-pot system isn’t just a behavioural change – it’s an investment paradigm shift. The introduction of the ‘savings pot‘ creates a more dynamic investment environment, where both financial advisers and investors must be more deliberate in their approach.

Drawing from international experience, it’s clear that the most effective retirement systems are underpinned by a few core principles:

• Portfolio construction: The two-pot system potentially creates a divide between shortterm liquidity and long-term growth. The savings pot, with its potential for withdrawals, may require a more conservative, liquid investment strategy to avoid selling assets at a loss. However, this needs to take into account that this pot should only be accessed infrequently in times of distress, so it is important to not be overly conservative with these assets as missed growth can be a

significant opportunity cost. The retirement pot can be invested for higher long-term growth, taking on more risk to benefit from compounding returns. The key is to segregate these investment strategies to match the different time horizons of each pot.

• Disciplined investing: The ability to withdraw from the savings pot can be a double-edged sword. While it provides an important safety net, it also introduces the risk of eroding one’s retirement nest egg. The lessons from countries that allowed mass withdrawals during the pandemic are clear: large withdrawals will significantly reduce an individual’s final retirement balance. For the two-pot system to succeed, investors must view the savings pot as a genuine emergency fund and resist the temptation to make withdrawals for frivolous reasons.

• The role of advice: The complexity of the two-pot system, from tax implications to strategic asset allocation, makes professional financial advice more critical than ever. As the Chilean model demonstrates, relying solely on individual decision-making can lead to poor outcomes. Financial advisers act as guides, helping investors understand the long-term consequences of their choices and constructing portfolios that align with their unique needs and risk profiles. They are instrumental in ensuring a disciplined approach to saving and withdrawing.

The two-pot system is more than just a regulatory change; it’s an adaptive response to the realities for members in the retirement landscape. Our role is to be a forward-looking thought leader, drawing lessons from global experience and applying them to our unique local realities.

Every investor’s needs and preferences are unique, which is why it’s important that they can choose from a wide range of investment solutions with well-managed funds that excel in both quantitative and qualitative characteristics. As one of the largest investment providers in South Africa, we are in a unique position to leverage our scale and global perspective. This approach reflects our belief that empowered investors are those who can navigate the new retirement landscape with confidence. By providing expert guidance, sophisticated portfolio solutions, and a deep understanding of both local and international markets, we aim to help financial advisers and their clients make smarter investment decisions to ensure a secure and prosperous retirement.

How the Two-Pot System has reshaped retirement in SA

When the two-pot retirement system officially launched in September 2024, it made waves across news outlets, social media and even family WhatsApp groups. For the first time, South Africans could access a portion of their retirement savings without resigning from their jobs – a longawaited reform to balance immediate financial relief with long-term preservation.

Now, more than a year later, the system is transforming how South Africans engage with their retirement funds. A recent Liberty panel discussion explored the progress so far - from billions withdrawn to behavioural shifts and digital breakthroughs.

Billions accessed, but preservation exists

“Just 13 months ago, we didn’t even know what a tax directive for two-pot withdrawals would look like,” says John Taylor, Head: Investment & Benefit Consulting at Liberty Corporate Benefits, one of the panellists. “But SARS was ready, and it went smoothly.”

In its first year, the system has processed over 4 million withdrawals worth R57bn, generating R15bn in income tax for SARS. While those numbers grabbed headlines, the most significant outcome is arguably what’s being preserved. Before the reform, only 7% of people preserved their retirement savings when changing jobs. Today, 100% must preserve at least two-thirds, marking what Taylor calls “a massive behavioural shift” that will benefit South Africans for decades.

“We’ve seen 10 times as many preservations as before,” he said. “That’s a huge cultural change, building up personal wealth, family security and national capital for long-term growth.”

Changing consumer behaviour

According to Fahiem Esack, Lead Specialist: Operations, Analytics and Insights at Liberty, the system’s early months saw a surge of withdrawals, but activity has since stabilised. “Fifty-five percent of claims came through in the first three months,” he says.

So far, 41% of members have withdrawn from their savings component, meaning the majority (59%) have chosen not to. That restraint reflects a successful education drive. Communication

was central to this shift. Brochures, podcasts, videos and multilingual content – even walkin centres – were used to ensure members understood both the benefits and long-term consequences of accessing their savings.

The digital leap

If there was one pleasant surprise, it was how comfortable South Africans were managing their claims online. “Seventy-five percent of claims were made digitally,” says Esack. “It shows members are engaging directly and confidently. That’s good news for efficiency and transparency, and it helps tackle long-standing issues like unclaimed benefits, which still total between R50bn and R80bn nationally.”

A long-term win for retirement security

For Taylor, the two-pot system marks a structural shift in how South Africans view retirement. “This reform introduced a level of compulsory preservation we’ve been trying to achieve for over 70 years,” he notes. “It ensures people keep building their nest egg even when life’s pressures mount.” Although some withdrawals have gone toward repaying debt or paying school fees, the system offers a safety valve, reducing the drastic step of resigning just to access savings. “People now have an annual opportunity to dip into a small portion when needed,” says Esack. “That can prevent lifealtering financial decisions.”

As Taylor notes, the reform marked a significant improvement in the preservation of retirement funds. “Even if members access the maximum amount each year, they still reach retirement with around 66% of what they would have had if they hadn’t accessed funds along the way,” he said. “That’s a vast improvement on the previous pattern, where many resigned and withdrew their full savings, leaving only 10% to 15% of what could have been preserved.”

Facing the challenges head on

One lingering concern is retrenchment access. As legislation stands, members who lose their jobs cannot currently tap into their retirement pots, raising fairness concerns that industry stakeholders and National Treasury are still working to address. “That’s one of the

compromises that allowed us to launch the system in time,” Taylor explains, “but it’s an issue that still needs to be resolved.”

Other unintended consequences have emerged too. Administrators are seeing the risk of fragmented ‘mini pots’ as workers move between employers, echoing international experience. Countries such as the UK have introduced auto-consolidation measures to manage this, and South Africa may need to follow suit.

“The two-pot system marks a structural shift in how South Africans view retirement”

Both Darshana Kooverjee, Head: Umbrella Fund Solution Product, and Esack agreed that the reform has deepened engagement between employees, employers, and fund administrators. For the first time, many members are interacting with their retirement funds during their working lives, rather than only when they resign or retire. “It’s no longer just a line on a payslip,” Esack says. “It’s a meaningful part of their financial story.”

Financial advice remains essential

Despite strong progress, panellists agreed that financial advice remains critical. With new rules, options, and tax implications, many members still find the system complex. “It’s vital that members make informed decisions,” says Kooverjee. “Your financial situation isn’t the same as your friend’s. Professional advice ensures you make choices that protect your future.”

While the first year of the two-pot system brought uncertainty, the results suggest cautious optimism. The structure has reduced leakage, improved preservation, and created a new channel for member engagement. As the system matures, the real test will be whether it can foster a genuine culture of saving where South Africans see their retirement funds not as a fallback, but as a foundation for longterm security.

By Belinda Carbutt Specialist in Group Savings and Investments at Allan Gray

EShifting the savings curve: A behavioural blueprint for employers

mployers play a crucial role in retirement savings in South Africa. Many employers recognise the important role employer-arranged retirement investments, such as umbrella funds, can play in supporting employees’ long-term financial wellbeing and attracting and retaining talent.

While employers who offer a retirement fund benefit have a fiduciary responsibility to safeguard the financial interests of members, legislation gives little guidance on how to encourage and promote healthy, long-term employee contribution rates. To address this gap, behavioural finance can offer employers practical strategies for improving employee saving habits.

Learning from the behavioural finance experts

Human beings aren’t naturally wired to prioritise long-term investing. This tendency has been studied extensively by Nobel Prize-winning economist Richard Thaler and behavioural finance expert Shlomo Benartzi, whose research led to the development of the Save More Tomorrow™ (SMT) strategy. SMT is a behavioural tool that helps people overcome savings inertia by gradually increasing retirement contributions – without the sting of reduced take-home pay.

How the Save More TomorrowTM strategy works

The SMT concept is built on three key behavioural insights:

• Present bias: We place greater value on immediate rewards than future ones. SMT sidesteps this by encouraging employees to commit today to saving more later, typically with salary increases.

By Pieter Albertyn Head of Product Solutions at Momentum Savings

• Loss aversion: People experience pain from losses more intensely than the pleasure of a gain. By linking contribution increases to pay increases, SMT prevents take-home pay from shrinking, reducing resistance to saving more.

• Inertia: Once in place, most people don’t opt out of a system. SMT uses this by automating contributions, turning inertia into savings growth.

From theory to practice: The glide path

Employers who offer an umbrella fund can consider incorporating a glide path. The glide path, like the SMT strategy, helps members gradually increase their retirement savings contributions over time, using their future salary increases. A glide path is tailored to the requirements of each employer. Below is an example of how this can play out:

• Minimum contribution of 7.5% of pre-tax salary

• Annual escalation of 1% takes place automatically, in line with the salary increase cycle

• The glide path is capped at 15%

Let’s look at a real-world example. Meet Thandi: She earns R20 000 per month and currently contributes

7.5% of that (R1 500) to her retirement fund. Thandi opts in to the glide path, with her contribution rate increasing by 1% each year, aligned to a 5% annual salary increase, as shown in Table 1.

In just five years, Thandi almost doubles her monthly retirement contribution – from R1 500 to R2 796 –without ever seeing a drop in her take-home pay. Over decades of employment, this steady increase has a compounding effect, significantly boosting the final value of her retirement savings.

This simple strategy builds long-term financial security, while helping individuals overcome the mental hurdles that often make it hard to save more.

What may start as a gentle nudge can lead to a profound shift – not just in contribution rates, but in financial outcomes. For employers, it is a powerful, practical way to foster a culture of saving, and to help more South Africans retire financially independent.

Do your clients leverage the legal ‘loophole’ in tax?

There’s a taxefficient way of saving on tax that you need to be reminding your clients about. As an actuary, I wish I could shout from the rooftops that saving on tax is so much easier than people think. And by far the most tax-efficient savings vehicle is saving for retirement. ‘Tax-efficient’ is a word that needs explanation. Efficient usually means you get more done with less – or at least that you don’t waste. In the case of retirement savings, it means it’s a way towards paying less tax. You’re also not ‘wasting’ money on tax when your money grows. To the contrary. This is the case because government is so keen for us to save for retirement that they go to great lengths to ‘sponsor’ our savings. When you invest in your retirement, they give

you a large chunk of it back when tax returns are submitted, to encourage people to save as much as possible for retirement.

Explain to your clients that they benefit in two ways from investing extra each year in retirement:

We don’t pay tax on the growth of our retirement investments (unlike almost all other investments)

• For every penny we put in, we get a tax refund that aligns 100% with the tax rate we usually pay.

If they are part of a work scheme, they can invest more. Or take out another retirement annuity (RA) for extra flexibility. At retirement it’s sometimes great to take the income from one RA, and keep another invested for more growth before the income is needed.

A simple example to give is this: If someone earns R50 000 per month, the marginal tax

rate is 25%. For every R1 000 invested in an RA, government will give back R250. This means it ‘costs’ only R750 to invest R1 000 every month for retirement.

“It makes so much sense to put any spare penny into retirement funds”

If they reinvest the refund instead of spending it, the refund the following year will be even bigger.

That’s why it makes so much sense to put any spare penny into retirement funds. There is obviously a limit to how much can be invested in this way, but the limit kicks in only when a person is earning more than R1,1m a year. And if more than the limit is contributed, it carries over to the next year, which will be beneficial by the time they retire.

By Kerry King Citadel Advisory Partner

Why timing retirement withdrawals matters

As inflation remains elevated

and market volatility persists, many retirees face difficult choices about when and how much to draw from their retirement savings. With longevity increasing and investment returns volatile, South Africans must balance immediate financial needs with the sustainability of their retirement portfolios.

The sustainability of drawdowns

Most retirees have a defined capital base – their retirement savings – and they would have made certain calculations and assumptions to ensure this base will be sufficient for the remainder of their lives. If retirees draw more than planned, often due to inflationary pressures, there is a real risk that their capital base will be depleted earlier than calculated.

There are two key factors that influence drawdowns, which people have no control over: market returns, and how long they live. These two factors are forcing retirees to be more conservative on withdrawal rates from their portfolios. Nobody wants to outlive their money. Beyond conservatism, it is also vital to be flexible with your income draw if market returns are lower for longer.

Sticking to your investment strategy is critical to ensure your capital is sustainable in the long term.

Balancing

flexibility and discipline

Retirees typically have two or three options when it comes to balancing flexibility and discipline in retirement. If a retiree finds themselves in a high-inflation, low-growth environment, it would be optimal to have additional earnings to supplement their retirement income, but this is not always possible. I have seen this work very effectively in my family, where my dad retired at 60 and continued to work, only drawing on his retirement capital from age 70. Delaying drawing from retirement capital is an effective way to grow retirement capital in the early retirement years. This works well because your asset base is at its peak, and the compounding growth makes a marked impact. Clients who have done both have managed to almost double their retirement capital. Everyone’s situation is unique, and delaying your income draw for a couple of years can have a similar effect.

Many retirees convert their pensions into annuities, which are either fixed or living annuities. Fixed annuities are funded with retirement capital in exchange for a monthly income, which can have different options of annual increases (fixed or inflationary). A fixed annuity

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.

guarantees income for life. It is, however, important to note that all annuities are subject to income tax. If you choose a living annuity versus a fixed annuity, you can choose your annual income draw between 2.5% and 17.5%. By keeping the income drawn to a minimum and using your discretionary assets to top up your monthly income, you can keep your tax rate lower. This is dependent on the quantum of the living annuity.

Both spouses included

Longevity scenarios also matter. Statistics show that 80% of women outlive their spouses, and of the current population over the age of 85, 70% are women. Women may face an increased risk of running out of money; therefore, families’ financial planning should reflect that reality. Retirement planning should account for the ages of both spouses.

When planning major financial transitions, the help of an adviser is vital to help clients prevent unnecessary taxes or estate duty. Properly structuring retirement income, investment strategies and dynamic asset allocation can extend the life of retirement capital. The key to long-term investing is diversification, which is where an expert can provide tailored, practical advice on how to spread investment across asset classes to reduce risk.

By Shaun Raizenberg Employee Benefits Consultant at Essential Employee Benefits

Making sense of medical aid, health insurance, NHI and LCBO

South Africa’s healthcare system is at a turning point, with the National Health Insurance (NHI) on the horizon and regulatory frameworks such as the Low-Cost Benefit Option (LCBO) gaining traction. The way in which South Africans access and pay for healthcare is set to change significantly with the implementation of NHI and the LCBO framework, if approved. For employers, this shift brings both opportunities and challenges – gone are the days when a single medical aid option could suffice for an entire workforce. Instead, organisations must navigate an increasingly complex landscape where choice, flexibility, and professional guidance are essential.

Beyond the buzzwords

One of the first hurdles for employees and employers alike is cutting through the confusion between medical aid and health insurance. Though often used interchangeably in casual conversation, the two are distinct.

Medical aid schemes provide comprehensive coverage, often including chronic illness management, hospital stays, and a wide range of day-to-day benefits. Medical aid schemes are regulated by the Council for Medical Schemes and designed to ensure members have extensive protection; but it’s costly. For many middle- to high-income earners, medical aid represents peace of mind – but it is not always financially sustainable and cost effective.

Health insurance, by contrast, operates under the Insurance Act and provides a more flexible affordable option. It is well-suited to everyday healthcare needs such as GP visits, medication, and minor procedures. While it does not provide the depth of in-hospital coverage that medical aid does, its affordability makes it a lifeline for lower-income employees who would otherwise be excluded from private healthcare altogether. This distinction is not just theoretical but it’s also deeply practical. Imagine two employees in the same company: one with a chronic illness who requires frequent specialist care and the other who visits a doctor occasionally for minor ailments. The former will likely find medical aid indispensable, while the latter may prefer health insurance that frees up income for other household expenses.

Why both options matter in the workplace

The modern workforce is diverse, not only in skills and demographics but also in financial realities. By offering both medical aid and health

insurance, employees can choose what best suits their needs and circumstances.

For example, a graduate just entering the workforce might opt for health insurance to keep costs manageable, while a senior manager with dependents may require the comprehensive security of a medical aid scheme.

In a country where healthcare costs are rising faster than inflation, the reasons are often complex and multifaceted, including demographic shifts, new technology and inefficiencies. This scenario places significant pressure on households, businesses, and government budgets, exacerbating concerns about the affordability of care. So, depending on your personal medical needs, financial situation and lifestyle, it is important to offer an individual both to help them make a betterinformed decision. Employers and companies can no longer afford a one-size-fits-all approach to employee cover.

Employers cannot ignore NHI

At the centre of current healthcare debates lies the NHI. Its aim is ambitious: to provide universal healthcare coverage for all South Africans. While noble in intent, its implementation will inevitably reshape private healthcare and inadvertently have an impact on employee benefits structures.

Once fully implemented, private medical schemes will no longer be able to duplicate services covered by NHI. Instead, they will be restricted to offering supplementary coverage for treatments not included in the state system. This could mean fewer benefits, changing cost structures, and even reduced membership in private schemes.

For employers, this presents a dilemma. How do you offer competitive benefits when the entire structure of private medical cover is shifting? The answer lies in staying informed and adaptable. The NHI does not eliminate the need for private coverage, it redefines it. Employers who anticipate these shifts and proactively adjust their strategies will be better positioned to retain talent and maintain workforce morale.

Bridging the affordability gap

While the NHI dominates headlines, the LCBO framework represents another significant development. Designed to provide affordable healthcare options for lower-income earners, LCBOs aim to expand access to private healthcare services for the lower-income earners who would otherwise rely solely on the public sector.

This framework is particularly important in South Africa’s dual healthcare system,

where the divide between public and private healthcare often mirrors economic inequality. LCBOs offer a middle ground: stripped-down but effective cover that makes private care accessible to more people.

For employers with large numbers of lower-income workers, LCBOs could become an invaluable tool. By providing access to affordable healthcare solutions, they not only support employee wellbeing but also reduce absenteeism, increase productivity, and contribute to broader social equity.

The role of expert guidance in a shifting landscape

With so many moving parts – NHI, LCBO, medical aid, and health insurance – it is easy for both employers and employees to feel overwhelmed. This is where expert partners play a critical role. Specialist advisers can help employers design benefit strategies that are not only compliant with current regulations but also resilient in the face of change. They bring insight into evolving laws, market trends, and employee needs, ensuring that businesses are not caught off guard by reforms.

For employees, expert guidance can mean the difference between choosing a plan that meets their medical needs and one that leaves them exposed. In an environment where misunderstanding could have serious financial and health consequences, this guidance is indispensable.

Protection through choice and flexibility

The lesson for businesses is clear: healthcare benefits must evolve alongside the system itself. Offering both medical aid and health insurance options ensures inclusivity across income levels and personal circumstances. Keeping an eye on LCBO developments helps employers cater to lower-income workers, while preparing for NHI ensures long-term compliance and competitiveness.

A

call to employers and employees alike

The healthcare landscape in South Africa is challenging, but it is also filled with opportunities for those willing to adapt. Employers who invest in choice, flexibility, and expert partnerships can create benefits structures that are not only resilient but also deeply supportive of employee wellbeing.

For employees, the responsibility is equally clear: understand your options, assess your needs, and seek advice before making decisions about medical cover. In a world where healthcare reform is inevitable, informed choice is the best form of empowerment.

Discovery Health Medical Scheme defers 2026 contribution increases to April

Discovery Health Medical Scheme (“the Scheme”) has announced a 7.2% weighted average contribution increase for 2026. Notably, 65% of members will experience only a 6.9% increase. In a continued effort to support affordability, the Scheme will defer all contribution increases to 1 April 2026, leveraging its strong solvency position to deliver R1.5 billion in direct savings to members.

In addition to this affordability focus, the Scheme is introducing two major enhancements for 2026:

• Smart Saver Series – A new range of plans tailored to meet the health and financial needs of young families.

• Enhanced Personal Health Fund Benefits (adult members accumulate funds into their Personal Health Fund by completing ‘next best actions’ in their Personal Health Pathways, which can be used to finance their day-to-day benefits).

Members will benefit from:

• More than double the earning limits available in 2025

• R1 000 opening balances for engaged members

• New personalised health challenges to support members in improving their long-term health and wellness.

Strong solvency defers contribution increases Deferring the contribution increases for 2026 from 1 January to 1 April delivers significant value to members who will continue paying 2025-level contributions for the first three months 2026. For example, a family of four on Classic Comprehensive will save over R5 100, while a family of three on Classic Saver will save more than R2 000 during this period.

This strategic deferral is made possible by the Scheme’s robust solvency position, which is driven by better-than-expected claims experience and returns on Scheme investments. “The Scheme remains acutely aware of the affordability pressures facing South African households. By deferring the 2026 contribution increase to 1 April 2026, the Scheme provides significant financial relief while continuing to deliver industry-leading healthcare benefits,” explains Dr Ron Whelan, CEO of Discovery Health – the administrator of Discovery Health Medical Scheme.

DHMS has leveraged its robust solvency position previously, by deferring the contribution increase during the COVID pandemic three times – in 2021, 2022 and 2023 – for members when it mattered most.

Introducing the Smart Saver series

Launching on 1 January 2026, the new Smart Saver plans set a fresh benchmark in affordable healthcare, tailored to the evolving needs of young, growing families. Smart Saver provides guaranteed cover for the healthcare services families use most – including GP consultations, optometry, dentistry, prescribed and over-the-counter medicine, and contraceptives. These are complemented by comprehensive hospital cover, maternity benefits, mental health support and oncology treatment within the Smart Network.

Importantly, Smart Saver combines two powerful funding mechanisms: a Medical Savings Account and the Personal Health Fund giving families the flexibility to manage their healthcare spending.

Balancing affordability and innovation

Discovery Health Medical Scheme remains deeply committed to balancing affordability with longterm sustainability, while continuously evolving to meet he needs of South African families. The 2026 contribution increase, launch of Smart Saver series, and enhancements to Personal Health Fund reflect this commitment in action.

Disclaimer: This press statement is issued by Discovery Health (Pty) Ltd, registration number 1997/013480/07, an authorised financial services provider and accredited administrator of medical schemes on behalf of Discovery Health Medical Scheme, registration number 1125, which it administers.

Note: The Discovery Health Medical Scheme contribution increases and benefit updates for 2026 have been submitted to the Council for Medical Schemes for approval. Contribution increases will be effective from 1 April 2026, while benefit updates and new benefit options will be effective from 1 January 2026, subject to approval by the Council for Medical Schemes.

Built Different: Redefining medical aid in SA

Fedhealth has recently announced a blueprint for its reimagined medical scheme that will be launched in partnership with Sanlam in 2026.

Under the theme of Built Different, the scheme is setting out to reimagine medical aid as we know it by addressing universal frustrations South Africans experience with their medical aid.

“We found some common themes that emerge among medical aid consumers,” says Jeremy Yatt, Fedhealth’s Principal Officer. “These included the fact that medical aid is seen as too expensive, too rigid, too complicated, and not inclusive enough.”

As a solution to these issues, the reimagined scheme will embody five core values: affordability, customisation, inclusivity, simplicity and trust.

Benefits that answer real member needs Fedhealth’s 2026 benefit changes reflect a scheme that listens and responds to its members. Some of the most significant enchancements are:

Expanded maternity benefits on flexiFED 1, including cover for additional scans, antenatal consultations, classes and amniocentesis.

• Stronger mental health support, with funded depression medication now extended to members on entry-level options like flexiFED Savvy, flexiFED 1 and flexiFED 2. Emergency contraception added as a covered benefit across all options.

• Preventative care for mature members, with an additional pneumococcal vaccine for those aged 65 and older.

Oncology enhancements, including a 25% higher brachytherapy benefit limit on flexiFED 4.

• Day-to-Day Plus (D2D+), a new benefit that rewards members for completing a health risk assessment and downloading the Fedhealth Member App, with up to R4 500 unlocked in additional cover for specified day-to-day expenses.

Despite these upgrades, Fedhealth has kept affordability at the forefront for cash-strapped South Africans. It has managed to secure its lowest average weighted contribution increase in years: just 9.6%. Popular options, such as flexiFED 1, will rise by only 5% (R125 per month for a main member), and the fast-growing flexiFED Savvy option will see a modest increase of R100 per month. For low-income earners, myFED will maintain its competitive position with only an 9.5% increase.

Fedhealth and Sanlam: A partnership of power Fedhealth’s partnership with Sanlam has enabled the scheme to offer a truly valuable product that integrates health, wealth, risk protection and rewards.

Members can enjoy access to a range of financial and wellness products that extend beyond medical aid, all under one brand.

These include:

• Sanlam Gap Cover, which protects against medical shortfalls, with Fedhealth members enjoying an exclusive 30% discount.

• Sanlam Primary Care, an affordable health solution ideal for corporates and individuals, offering unlimited GP consultations and essential day-to-day benefits through a nationwide network.

Oncology solutions with cover of up to R6m, ensuring treatment and recovery are never compromised by financial stress.

• Sanlam Health Rewards, live on the Fedhealth Member App, turns everyday health choices into vouchers, discounts and lifestyle rewards.

• Wealth Bonus & Health Boost, where Fedhealth members who purchase Sanlam risk products enjoy up to a 15% additional boost to their Wealth Bonus.

Says Yatt: “We believe this model will help transform medical aid from a grudge purchase into a cornerstone of long-term financial planning.”

“Fedhealth has kept affordability at the forefront for cashstrapped South Africans”

Looking ahead: Built Different for 2030 and beyond

In 2026, Medshield will also be amalgamating with Fedhealth, pending approval by the Regulator. Once this process is completed, the combined scheme will be among South Africa’s top four open medical schemes. While the amalgamation will be a significant milestone, Fedhealth is already delivering on its promise of a stronger, more innovative healthcare solution.

Building South Africa’s most trusted medical scheme

It’s the reimagined scheme’s ambition to become South Africa’s most trusted medical scheme by 2030. By building on values like affordability, inclusivity and trust, and by harnessing the power of the partnership with Sanlam, Fedhealth is creating a healthcare ecosystem that’s financially strong, memberdriven and prepared for the future.

Visit fedhealth.co.za to find out how medical aid is changing.

How to guide clients through a values-based medical aid switch in 2025

As a financial adviser, you’re already familiar with the technicalities of switching medical aids or medical aid plans – from waiting periods and underwriting, to contribution structures and benefits. But in 2025, as consumers seek more personal relevance from their cover, there’s a powerful new lens through which to guide these decisions: personal values.

Medical aid is not a one-size-fits-all product. It’s a long-term financial and emotional commitment that affects your clients’ health, wellbeing, and peace of mind. That’s why values-based advice that aligns medical aid recommendations with what truly matters to the individual sets you apart as a trusted, humancentred adviser.

Why people switch in 2025, and what they need from you

Clients may switch medical schemes or plans for many reasons: affordability, better benefits, poor service, or changes in life stage or health needs. But beneath these practical considerations lies a deeper desire – to feel seen, understood, and supported by a medical aid provider that shares their values.

This is where your guidance makes a real difference. While switching between schemes involves formalities like underwriting and waiting periods, switching between plans within the same scheme is typically more flexible. Either way, both scenarios are opportunities to connect your clients to cover that matches not just their budget but also their beliefs.

Compare apples with apples – not strawberries or blueberries

When choosing a medical aid, clients are often faced with a fruit bowl of options that look deceptively similar. Same glossy packaging. Similar promises. Comparable prices. But let’s not confuse them; an apple isn’t a strawberry, a blueberry, or a nectarine.

Medical aids may appear to offer the same juicy benefits on the surface, like a neatly packed box of nectarines proclaiming: “Fitness perks inside!” or a shiny apple sticker boasting crisp rewards. But what truly matters is beneath the surface. Substance over shine. It’s easy to be drawn to the most colourful arrangement loaded with rewards programmes, smoothie discounts, and step-count challenges. Yet these sweet deals often come with bitter seeds: hidden costs, lock-ins, or lifestyle restrictions.

As an adviser, ask yourself this: Should a medical aid really be telling members how to stay fit, where to shop, or what wellness should look like for them?

This is where values-based advice really matters. Clients are increasingly asking: Does this

medical scheme reflect what I believe in? Does it support my freedom, integrity, and wellbeing, or is it just another piece of fruit dressed up to look like something it’s not? Medical aid shouldn’t dictate your clients’ lifestyle choices. It should support their values and priorities. So, help them look past the packaging and choose cover that reflects who they are, and that isn’t just the fruit of the season.

Values: The new competitive edge in healthcare advice

Both global research and Medihelp’s own experience show that consumers are more likely to support organisations whose actions reflect their personal values, such as integrity, compassion, innovation, and community. This is more than a trend; it’s a shift in how people approach their health and finances.

Values are fundamental, non-negotiable principles that guide people’s behaviour and decision-making. They’re what people use to evaluate choices, including financial products like medical aid. And increasingly, clients are asking: Do my service providers share my values?

“Values like excellence, compassion, collaboration, and transparency shape every aspect of our operations – both internally and externally,” says Lien Potgieter, Head of Marketing at Medihelp. “Our plans are built not just around healthcare needs, but around human uniqueness.”

“Clients are more likely to stay with a medical scheme that aligns with their values than one that simply offers a lower contribution”

Valuegraphics are a powerful resource

For years, advisers have relied on demographics and psychographics to understand clients. But these tools often fall short in long-term financial planning. That’s where valuegraphics, a method pioneered by David Allison, a human values expert, offers something more: insight into the deeper motivational drivers behind client behaviour.

Allison’s global data reveals that values such as family, community, belonging, and financial security are consistent across many groups But cultural nuances, like the importance of spirituality and patience in African markets, are essential for personalised advice.

To uncover what truly drives your clients’ choices, Potgieter recommends asking them three simple questions:

• Why do you go to work every day?

What would you do if you won the lottery tomorrow?

• What advice would you give your younger self, and why?

Their answers often uncover their values, which should shape your advice and guide you to the plan that best reflects their priorities.

Help clients align their cover with their core values

When guiding clients through a medical aid plan or provider switch in 2025, values offer a meaningful framework that goes beyond financial comparisons. Here’s how you can integrate values into your advice process to create long-term, client-centred solutions:

Start with what matters most

Ask open-ended questions that reveal what drives your client, whether it’s family, financial stability, independence, creativity, or health. Use their answers to shape a solution that meets practical needs and supports personal purpose.

Look beyond the spreadsheet

Don’t let price dominate the conversation. While monthly contributions and benefits matter, they’re only one part of the equation.

Personalise the match

When making recommendations, connect plan benefits to your client’s values. For example: “Because financial stability and family are priorities for you, this plan offers generous cover for both hospitalisation and dependants without unpredictable costs.”

This builds trust and empowers informed, confident decisions.

Frame value as long-term value

Cheaper isn’t always better. Bells and whistles may seem attractive upfront, but they often come with trade-offs. Instead, frame value as peace of mind, trusted service, and reliable protection – especially in emergencies.

Clients want alignment

Medical aids aren’t only about healthcare funding. They represent peace of mind, alignment of values, and dependable support for life’s unexpected turns. By helping your clients choose a scheme and plan that reflects who they are, not just what they earn, you build stronger relationships and deliver real, lasting value.

Looking for medical aid options that support your clients’ values and health goals? Visit medihelp.co.za to explore solutions built on stability, service, and shared values – and make every recommendation count.

How Futuregrowth is building better venture capital

By Sandy Welch Editor, MoneyMarketing

Back in 2012, the idea of a vibrant venture capital ecosystem in South Africa was still a distant dream. Then, the total size of the local venture industry was estimated around R300m, a modest figure compared to the thriving innovation economies elsewhere in the world. Fast forward to today, and the landscape has changed dramatically, thanks in part to pioneers who helped build it from the ground up.

“When I joined Futuregrowth more than a decade ago, The Development Equity Fund existed but it wasn’t focused on venture capital,” says Amrish Narrandes, Head of Private Equity and Venture Capital at Futuregrowth. “We have spent the past decade developing it into the institutional-grade platform we have today.”

In the early days, venture capital in South Africa was driven largely by high-net-worth individuals and small angel investors. It was fragmented, relationship-based and difficult for most entrepreneurs to access. Now, with institutional investors like Futuregrowth entering the space, they have brought not only deeper pockets but also stronger governance and long-term sustainability.

As a result, deal sizes are increasing, investor sophistication is growing, and South African founders are finding more structured support. “Early-stage activity is vibrant, particularly in Series A funding rounds where companies have already shown product-market fit,” Narrandes explains. “But capital for later-stage growth is still scarce, and we often see founders having to look offshore for follow-on rounds.”

What sets Futuregrowth apart

With one of the longest venture track records in South Africa, Futuregrowth has earned its reputation as a patient, disciplined investor. Over the years, the team has backed and exited several successful ventures, including Retail Capital, sold to TymeBank, and Cash Connect, acquired by Lesaka Technologies. “Those exits were great results for our investors and valuable experiences for us,” says Narrandes. “We’ve been through the full cycle, from backing early-stage entrepreneurs to helping them navigate growth challenges and ultimately achieve strong outcomes.”

Performance has been robust, too. “We’ve maintained a blended track record of over 30% in this space,” he notes, “and that’s not by chasing hype. It’s through disciplined, longterm investing.”

Futuregrowth’s institutional heritage gives it a distinctive edge in governance and risk management, which are qualities often in short supply in early-stage investing. “Co-investors know that when they bring us into a deal, they’re getting a credible and robust partner,” says Narrandes. “We apply rigorous investment committee discipline, not to slow founders down but to strengthen the business.”

That partnership philosophy extends beyond funding. When portfolio companies face difficulties, Futuregrowth’s team gets involved. “If one of our startups hits a rough patch, we’ll roll up our sleeves and help, whether it’s helping restructure, raising followon capital, or providing operational support,” says Narrandes.

The power of the team

Behind the portfolio is a diverse, multidisciplinary investment team – a deliberate choice that mirrors the kind of balance Futuregrowth looks for in its investee companies. “We’ve built one of the larger and more experienced teams in the local VC space,” Narrandes explains.

That diversity of background and thought is a big advantage. It reflects the very qualities Futuregrowth values in founders – complementary skills, sound judgement, and a variety of perspectives that help uncover opportunity and manage risk from multiple angles.

Integrating ESG with realism

Environmental, social and governance (ESG) considerations are central to Futuregrowth’s broader investment philosophy, but the team applies them pragmatically in venture capital. That pragmatic approach is evident in SweepSouth, a Futuregrowth-backed platform that connects SweepStars with households seeking cleaning services. “It’s a powerful example of social impact,” says Narrandes. “It empowers mainly women to take control of their time and earnings, while creating safer, more formal employment opportunities.”

Managing risk in a volatile world

Venture capital, by nature, involves higher risk and in an unpredictable global environment, that risk needs careful management. “The key is diversification,” says Narrandes. “Our venture capital fund currently sits within a larger developmental equity fund, so we’re able to diversify across multiple sectors.”

While the fund remains overweight in fintech, still one of the most active and investable areas on the continent, it also backs innovation in agritech, proptech and energy. “We look for

“We’re launching a dedicated vehicle called the High Growth Developmental Equity Fund (HGDEF), which will focus purely on venture”

sectors with structural growth,” he adds. “But diversification gives us resilience when macro factors shift.” That includes negotiating strong governance rights and downside protections in startup agreements.

The

next chapter: A dedicated VC fund

As South Africa’s venture ecosystem continues to mature, Futuregrowth is preparing for its next big step: the launch of a stand-alone venture capital fund. “Up to now, our VC investments have sat within the Developmental Equity Fund,” explains Narrandes. “The exciting part is that we’re now launching a dedicated vehicle called the High Growth Developmental Equity Fund (HGDEF), which will focus purely on venture.”

The new fund will allow Futuregrowth to broaden its footprint beyond South Africa, with the flexibility to invest in high-potential businesses across the African continent. “Our current fund is mostly South Africa-focused,” says Narrandes. “The HGDEF will include African exposure, which is where we’re seeing incredible innovation and market opportunity.” Set to launch before the end of 2025, the fund represents a milestone in Futuregrowth’s venture journey and is a signal of confidence in both the local innovation ecosystem and the asset class itself.

Building

for

long-term growth

For all the excitement around venture investing, Narrandes returns often to one theme: discipline. “The fundamentals don’t change,” he says. “Strong teams, good governance, realistic valuations, and businesses that solve real problems – those are what make venture capital sustainable.”

In an ecosystem still finding its rhythm, Futuregrowth’s blend of institutional discipline and entrepreneurial empathy is helping shape the next generation of African innovators.

Futuregrowth is a licensed FSP.

For South Africa’s venture capital ecosystem to reach its full potential, collaboration across the entire capital stack, from early ideation to private equity, is critical. This is one of the key points raised by Paula Mokwena, CEO of Fireball Capital and newly appointed Southern African Venture Capital and Private Equity Association (SAVCA) board member, who believes that bridging the gap between early-stage and growth capital will help businesses scale sustainably while retaining more value locally.

“The ecosystem has grown in leaps and bounds, but the venture space remains very nascent,” Mokwena explains. “There’s still a lot of work that needs to be done to strengthen the ecosystem, particularly around expanding access to funding and fostering greater collaboration between venture capital and private equity.”

As SAVCA board member, Mokwena is intent on helping to build a stronger, more connected investment landscape that supports entrepreneurs at every growth stage, from start-up to scale-up. “As companies mature, there needs to be stronger collaboration between early-stage and later-stage investors,” she says. “When we work together, we will help bridge the funding gaps and build the confidence and continuity needed to strengthen the venture ecosystem.”

While South Africa’s private markets have deepened over time, institutional participation in venture capital remains limited. The asset class is still perceived as high-risk, and many local institutional investors prefer to “wait and see” rather than back early-stage funds. Mokwena believes that needs to change. “It’s a bit of a chickenand-egg situation,” she notes. “Investors want to see proof points and exits before committing capital, but we need that capital first in order to create the proof points.”

Despite these hurdles, Mokwena remains optimistic. With stronger policy frameworks, investor education and more local capital

The next frontier for South African venture capital

By Sandy Welch Editor, MoneyMarketing

“With easy capital no longer flooding the market, founders are now building leaner, more capitalefficient businesses”

allocation, she believes the sector can thrive, unlocking innovation, driving economic growth, and keeping entrepreneurial talent in South Africa. “We need to bring investors into the conversation about how the capital stack needs to be built out – from ideation to the point where we can graduate businesses into private equity,” Mokwena explains. “The goal is to create deep enough pools of capital so that companies are not forced to exit too early and we continue to participate in the upside as they grow.”

However, this vision is unfolding in a challenging macroeconomic environment. Global inflationary pressures, rising interest rates, and general market volatility have reshaped investor sentiment and deal dynamics. As Mokwena points out, capital has become more expensive – and more cautious. “Gone are the days of near-zero interest rates and ‘free money’ circulating in global markets,” she says. “Investors have become far more selective. There’s much more discipline, and founders are being asked different questions.”

The shift has, however, brought a silver lining. With easy capital no longer flooding the market, founders are now building leaner, more capital-efficient businesses from the outset. According to Mokwena, this has led to stronger business models, more sustainable unit economics, and healthier valuations, particularly

in South Africa, where the market has never been as overheated as Silicon Valley or other emerging African hubs. “The curse is that we don’t have deep enough pools of capital,” she admits, “but the blessing is that it forces founders to build capital-efficient businesses. Valuations are more realistic, and that gives our ecosystem a level of protection against speculative bubbles like those we’ve seen elsewhere.”

Mokwena also highlights the growing maturity of local investors. With limited capital to deploy, fund managers are under pressure to demonstrate that venture capital can deliver competitive risk-adjusted returns relative to other private market asset classes. “This scarcity is driving greater discipline and better outcomes,” she says. “It’s our opportunity to prove that this asset class can stand on its own merit.”

Another defining theme for Mokwena is diversity, not just among founders, but among those allocating capital. “We need more diversity among decision-makers,” she argues. “Who sits at the investment table influences who gets funded. Greater representation in capital allocation will naturally lead to more diverse founders being backed.”

She also calls for stronger collaboration with South Africa’s universities, which she sees as vital sources of innovation and entrepreneurial talent. “There’s incredible research and innovation happening in our universities, yet academia is often left out of the conversation,” Mokwena says. “Bringing them in as ecosystem partners can unlock new pipelines of founders and technologies.”

For South Africa’s venture capital industry, the road ahead lies in expanding funding access, improving diversity, and strengthening collaboration between stakeholders. “The pieces are coming together,” Mokwena concludes. “If we can deepen local capital pools, attract institutional investors, and continue building resilient, scalable businesses, the potential for growth in our ecosystem is enormous.”

ETF Evolution Report identifies market gaps and growth opportunities

With the Exchange Traded Funds (ETFs) industry reaching record highs worldwide, Prescient Fund Services, a global full-suite fund services firm, has released a special ETF Evolution Report, offering an overview of the current state and future potential of the South African ETF market.

Timed to coincide with the 25th anniversary of ETFs in South Africa, the report seeks to educate the market, address industry misconceptions, and showcase the vast opportunities for both local and offshore investment managers.

Recent data from ETFGI, a leading independent research and consultancy firm, highlights the growth momentum in Europe. At the end of August 2025, assets in the European ETFs industry reached a record $2.87tn, with year-to-date net inflows of $240.99bn – the highest ever recorded. August also marked the 35th consecutive month of net inflows into European-listed ETFs, signalling strong and sustained investor appetite.

Driving industry understanding and adoption “ETFs have become an essential part of the global investment toolkit, yet in South Africa, the full potential is still to be realised,” says Craig Mockford, CEO of Prescient Fund Services, which has a presence in South Africa, the United Kingdom and Ireland. “This report reflects our commitment to helping investors, investment managers and the broader industry globally to understand how to unlock the full value these products can deliver in the markets in which we operate.

“The entrance of Prescient Fund Services into the ETP markets by providing a platform for facilitating the listing of Actively Managed ETFs on the JSE since early 2024 has been one of the seminal events in the development of the South African ETP market,” says Mike Brown, CEO of ETFSA. “Prescient Fund Services has now brought 20 of the 30 AMETFs to the JSE, accounting for a market capitalisation of some R4,4bn, with nine different asset managers in a short period of time. By bringing administrative efficiency, AMETF product knowledge and facilitating liquidity, Prescient Fund Services is rapidly assuming a leading role in adding innovation to the South African ETP industry.”

Drawing on insights from Prescient Fund Services’ experienced team of ETF specialists and supported by market data, client experiences and insights from both

“ETFs have become an essential part of the global investment toolkit”

South Africa and international markets, the report explores:

The evolution of the South African ETF market – from the launch of the first ETF in 2000 to the rise of actively managed ETFs (AMETFs).

Opportunities for institutional investors – how ETFs can be integrated into sophisticated portfolio strategies.

• Retail empowerment – the democratisation of investing through accessible, transparent products.

Practical guidance for issuers – what’s needed for a successful ETF listing. Dispelling myths – challenging outdated perceptions about costs, use cases and active vs. passive strategies.

• African and inward listing opportunities – how ETFs can help deepen regional markets and offer offshore managers a gateway into South Africa.

One of the report’s central aims is to close the knowledge gap. The more educated the market becomes about structures, strategies and distribution, the more confident issuers and investors will be in embracing ETFs as an investment vehicle.

Looking ahead – the future of ETFs

The report also looks to the next chapter of ETF growth, with trends such as inward

listings, actively managed ETFs and thematically focused products set to drive market expansion. Increasing regulatory flexibility, coupled with advances in trading platforms and investor education, are expected to open new avenues for both institutional and retail participation.

“South Africa’s ETF market is developing rapidly, and its growth potential resonates well with trends in Europe and the United Kingdom,” says Mockford. “In the coming years, we expect deeper integration between local and offshore markets, with more dual listings, product innovation and investor cross-pollination.”

Defining the roadmap for ETF success

The report emphasises that achieving this vision will require continuous innovation, industry collaboration and a commitment to transparency and investor education.

Enriched with industry timelines and expert commentary, the 33-page report is designed to be a practical reference for anyone seeking to understand or participate in the local ETF market.

The report is available for download on the Prescient website.

Can local bonds continue to reward investors?

By Duayne le Roux Fund Manager at PSG Asset Management

South African bonds have delivered strong returns for investors year-to-date, with the FTSE/JSE All Bond Index (ALBI) returning 14% for the nine months to September 2025. What makes this notable is that it follows shortly on the heels of similarly exceptional double-digit returns for the 2024 calendar year, at 17% (source: Morningstar Direct). Looking ahead, what should fixed income investors expect?

While last year’s rerating in local bonds was driven largely by the unwinding of the political risk premium, the drivers of the bond rally in 2025 are materially different. Bonds started the year off on a solid footing, offering attractive real returns. The South African Reserve Bank (SARB) then started signalling its intention to lower the inflation target to 3%, which added to the asset

class’s long-term appeal. A weaker dollar has also made emerging market debt in general (South Africa included) more attractive to global investors. We further saw improvements in the terms of trade supported by strong platinum group metals (PGM) and gold prices. With local government bonds offering investors high real rates, foreigners have started taking note, with record inflows into SA government bonds from global investors. Additionally, we have more recently seen a period of relative political stability, and early signs of incremental improvements in the local economy.

Despite the recent strong run, we see scope for continued good performance from local government bonds, although we do expect returns to moderate. At the beginning of 2025, more elevated levels of inflation were expected, but inflation expectations have softened. An often-overlooked positive factor is that inflation volatility has also been trending lower – which will help the SARB reach the lower inflation target. Despite the uptick in recent purchases, foreigners still have only a marginal

exposure to SA bonds, and further purchases can be supportive for the local market. Growth expectations remain extremely low, and therefore any further signs of an improvement in fundamentals will have a positive impact on the country’s fiscal position – hence the attractiveness of bonds. Continued stability in the Government of National Unity (GNU) and ongoing policy reforms also bodes well for markets and the economy.

There are risks to the outlook, however. Continued policy stability and implementation of the reform agenda is required to support further improvements in fundamentals. Supply shocks and geopolitical tensions could negatively impact the local economy and the inflation outlook. However, we remain cautiously optimistic on the road ahead.

Investors need to remain cognisant of their overall risk appetite and investment objectives while looking to capitalise on the continued strong real returns on offer from bonds. We believe investors will be well served by experienced and proven managers, who take a flexible approach to managing risks in the market. This can help ensure portfolios remain optimally positioned to take advantage of opportunities in the market, while aiming to avoid capital losses, which can be especially detrimental to fixed income investors.

On our quest to deliver investment success to A client, we undertake rigorous research, looking for good opportunities that others may have missed. Once found, we make sure we are paying an attractive price for quality assets that will deliver real value in the long run. But that is

just the beginning.

We blend these assets into robust and carefully considered portfolios.

Then, and only then, do we consider it a ‘good’ investment.

Partner with the Big Picture Thinkers today.

Speak to your financial adviser, call 0860 000 368 or email wealth@psg.co.za. www.psg.co.za/asset-management

PSG Asset Management (Pty) Ltd - FSP 29524. Contact number: 0800 600 168. Affiliates of the PSG Financial Services Group, a licensed controlling company, are authorised financial services providers.

What makes a compelling offshore platform?

By Robert Rhodes Managing Director of Momentum Wealth International

In today’s interconnected world, offshore investing is no longer a luxury, it’s a strategic necessity. Momentum Wealth International empowers South African clients to invest globally with confidence, offering an investment platform that is secure, flexible and tailored to individual needs.

Through the platform and its investment options, clients have access to a wide range of global funds, spanning multiple sectors, geographies, and currencies. Whether clients seek active management, exchange-traded funds, model portfolios or international personal share portfolios, Momentum Wealth International provides the tools to build globally diversified strategies aligned with unique goals and risk profiles.

To simplify the selection of underlying investment components, Momentum Wealth International offers guided solutions from world-class investment managers and its investment partners, Curate Investments, Equilibrium, and Momentum Securities. These teams conduct rigorous due diligence and ongoing monitoring to ensure quality and performance across market cycles.

Two distinct investment options are available to meet the offshore investing needs of a wide variety of South African clients. The flexibility of these solutions makes it easier for advisers to align product features with their clients’ personal goals and circumstances, tax profiles, and future plans – whether they are considering tax efficiency, succession planning, or long-term global exposure.

The Global Wealth Endowment is ideal for high-net-worth individuals focused on intergenerational wealth transfer and estate planning, whereas the Global Wealth

“It’s about helping clients build and protect their financial dreams”

Investment could suit clients who prefer managing their own tax affairs or live in taxneutral jurisdictions, offering portability, control and transparency.

Both these options include joint ownership with survivorship provisions. For the Global Wealth Investment, this is the default option, whereas for the Global Wealth Endowment, it is restricted to spouses and must be selected.

Additionally, the Global Wealth Endowment has comprehensive succession planning capabilities, such as the ability to appoint successor contract owners, alternate successor contract owners, and to nominate primary and alternate beneficiaries of proceeds. This means that if the primary nominee is unable to accept the inheritance, the alternate automatically takes their place.

These features help to reduce the complexity, time and cost normally associated with death claims, and potentially avoid executor fees and other related costs and tax.

Momentum Wealth International is based in Guernsey, a globally respected offshore financial centre known for tax neutrality, robust legal protection, political and economic stability, and no exchange controls for the free movement of capital, simplifying global transactions.

The secure online platform offers convenient access to investment information, consolidated multi-currency reporting, and advanced tools for advisers, including internal rate of return (IRR) and capital gains tax (CGT) calculators, bulk reporting and automated scheduling of regular client reports. This digital-first approach ensures transparency, efficiency, and ease of administration.

Momentum Wealth International is more than a platform. It’s a partnership. Advisers benefit from on-the-ground support in South Africa, access to offshore specialists, and a network of legal, tax, and fiduciary experts. Whether navigating exchange control, emigration, or complex estate planning, it provides expert guidance every step of the way.

The pricing philosophy is built on fairness and clarity, with clean-priced investment funds and exchange-traded funds, and competitively priced model portfolios. The platform caters to a wide range of clients, from individuals and families to trusts and corporates, making global investing accessible and strategic.

Momentum Wealth International isn’t just about investing offshore; it’s about helping clients build and protect their financial dreams on their journey to success.

Each person’s investing journey to success is unique and personal. With us, you can shape that journey in the most singular way.

Speak to your Momentum Consultant to find out more or visit momentum.co.gg.

By Thomas Berry Head of Sales, PSG Wealth

TOffshore 101: Understanding the basics

he 21st century has brought unprecedented access to international markets, enabling investors to diversify their portfolios globally and have access to some of the largest companies worldwide. As they position themselves and their portfolios for long-term wealth creation, South Africans have increasingly incorporated offshore investments into their portfolios. This trend has gained momentum over the years, reflecting evolving investment needs and goals.

Investment goals in a global context

It’s important to emphasise to your clients that every investment journey should begin with a clear understanding of needs and goals, whether preserving wealth, generating income or maximising long-term growth. In a globalised environment, aligning these objectives with the right mix of local and offshore assets is crucial to achieving their outcomes.

Investors seeking diversification often look beyond the South African market, exploring opportunities across regions, asset classes and sectors such as global technology, healthcare innovation, renewable energy and consumer brands. The key to investing offshore successfully is aligning allocations with an advice plan, risk tolerance and time horizon, while considering factors like currency movements, inflation and countryspecific economic shocks that can impact performance.

The global market landscape and offshore equities

Today, global markets are both dynamic and interdependent. Developments in one region, such as interest rate decisions or geopolitical tensions, can have knockon effects across the global landscape. This interconnectedness means that opportunities and risks must be carefully assessed when investing offshore.

Offshore exposure plays a pivotal role in diversifying portfolios. While the Johannesburg Stock Exchange offers investors the ability to invest in about 400 local and global companies, offshore equities provide access to a much broader universe of listed companies that dominate their sectors internationally.

Offshore investing isn’t just for the wealthy One of the most accessible ways for South African investors to gain offshore exposure is through feeder funds. These are randdenominated unit trust funds that invest directly in an offshore fund. This structure removes the need for investors to open offshore accounts or make use of their foreign investment allowance.

The advantage of feeder funds lies in their simplicity

• Ease of access: Investors can invest in rands without worrying about exchange control processes or currency transfers.

• Professional management: The underlying offshore fund is managed by experienced global investment teams.

• Diversification: Investors gain access to international markets across sectors, geographies and asset classes.

Feeder funds provide an excellent solution to both investors who are new to offshore investing and those who prefer a straightforward entry point.

Offshore investing options

Investors can use either their single discretionary allowance of R1m, which does not require tax clearance, or their foreign investment allowance of R10m per year, which requires both tax clearance and exchange control approval. A variety of products support South African investors seeking to invest directly offshore. For straightforward investing, offshore discretionary investments are available, while more sophisticated estate planning, tax efficiency and long-term wealth accumulation needs can be addressed using investment wrappers such as endowments and sinking funds. These wrappers can be advantageous for investing offshore and intergenerational wealth planning, which have become increasingly important considerations for South African families.

The case for exposure to offshore markets While local opportunities remain valuable, by clearly defining investment goals, understanding global market dynamics and using accessible structures, South African investors can strategically invest in global markets and harness its benefits.

Navigating offshore opportunities amid global uncertainty

By Scott Cooper Investment Professional, Mariott Investment Managers

Since the start of the decade, investors have weathered a relentless cascade of shocks, beginning with a market selloff in March 2020 as the world came to grips with the reality of the Covid pandemic. Equity markets then surged ahead throughout 2021, buoyed by optimism around the ‘Great Reopening’, only to quickly reverse direction in the first six months of 2022 as central banks implemented interest rate hikes at a rapid pace to combat an inflation spike that was both higher and more persistent than initially anticipated. Geopolitical crises – from Russia’s invasion of Ukraine to regional tensions in Asia – added further complexity, and in April 2025, Trump’s sweeping ‘Liberation Day’ tariffs then introduced a new era of trade disruptions and regulatory uncertainty.

Today’s markets present a further challenge, one defined less by macroeconomic shocks than by structural imbalance. A handful of AI companies have accounted for 80% of gains in US stocks so far in 2025, creating outsized concentration risks within global markets. Technology stocks now make up over 49% of the S&P 500 index, with the five largest companies alone comprising over 30%. While AI innovation promises genuine productivity gains, such narrow leadership amplifies volatility and heightens downside risk to equity markets. For investment managers, the challenge is not only to enable clients to capture exposure to this potentially transformative technology, but to maintain appropriate portfolio diversification and remain mindful of valuations, which in some instances are becoming increasingly demanding.

With rising concentration risks and ongoing macroeconomic uncertainty, focusing on quality investments is more important than ever. This approach has long been central to Marriott’s investment strategy and is embraced by leading global asset managers. While funds in this category share common traits, each maintains unique characteristics that differentiate them. Marriott’s newly launched Smart International Equity Portfolio leverages our philosophy, offering South African investors diversified exposure to a range of quality-focused funds. It combines access to leading actively managed funds, such as the Fundsmith Equity Fund and Dodge & Cox US Stock Fund, with selective passive vehicles like the iShares Core S&P 500 ETF, striking a balance between professional insight and cost efficiency. In doing so, the portfolio seeks to deliver resilient, risk-adjusted returns though investments in companies with strong balance sheets, established brands and reliable earnings.

The Smart International Equity Portfolio is ideal for investors who believe that long-term ownership of shares in high-quality businesses is an effective strategy for wealth accumulation. Further, because we’ve opted for accumulating funds instead of distributing funds, investors can compound dividends tax-free, with any increase in value subject to capital gains tax rather than income tax upon repurchase. Since its launch at the end of March 2025, the Smart International Equity Portfolio has returned 14.8% to 30 September. This early performance underscores the potential of this diversified, quality-focused and tax-efficient way for South Africans to gain well-considered exposure to global equity markets. The Smart International Equity Portfolio (SIEP) can be accessed via Marriott’s International Investment Mandate (using your annual individual offshore allowance).

A smarter offshore strategy for South Africans

By Hildegard Wilson Managing Director, Glacier International

In an increasingly interconnected world, South African investors are looking beyond borders to diversify their portfolios and protect their wealth. However, with opportunity comes risk, especially when it comes to currency volatility, tax implications, and limited local investment options.

Understanding the risks, not just the rand South Africa’s currency, the rand, is among the most volatile in the world. Historically, the rand has depreciated against the US dollar by an average of 5% annually since the 1960s. This long-term trend, coupled with South Africa’s high inflation and political uncertainty, makes a compelling case for externalising wealth.

While many investors focus solely on currency risk when considering offshore investments, this is just one piece of the puzzle. There’s also the opportunity cost of not accessing global sectors like technology and consumer services, which are underrepresented in the South African market.

By Lambert Roberts Expatriate Tax Team Manager at Tax Consulting SA

What does hedging really mean?

Over the long term, we expect the rand to depreciate due to South Africa’s relatively higher inflation compared to developed markets. This means that if your offshore investment is worth $5 882 at an exchange rate of R17 to the dollar (equivalent to R100 000), and the rand depreciates to R20 to the dollar, the same investment would be worth R117 647 in rand terms – purely due to currency movement. In addition to this, the actual investment return from the underlying international assets must also be considered. By holding assets in a foreign currency, such as the US dollar, euro, or pound, South African investors can reduce their exposure to local currency depreciation.

Access to global opportunities

One of the most compelling reasons to invest offshore is access to a broader range of investment opportunities. Partnering with Glacier International gives investors access to some of the world’s best portfolio managers and sectors that are underrepresented locally. This global reach allows investors to build portfolios that are not only diversified by geography and currency, but also by industry and asset class.

Glacier International offers three main offshore solutions designed to help investors hedge against these risks and build more resilient portfolios: the Glacier International Global Life Plan, the Glacier International Global Investment Plan and the Glacier Offshore Investment Plan. Each of these solutions allows investors to externalise the rand, converting

Don’t miss the window to move money offshore

With the ZAR hovering at its strongest level since the start of 2025 –around R17,20 to the US dollar – many South African high-net-worth individuals (HNWIs) are enquiring about urgently moving funds offshore before year-end to take advantage of the currency’s current strength. While this offers a timely opportunity, there is confusion in the market about which processes apply to which thresholds when South African tax residents move funds offshore, especially when transferring more than R10m. This confusion can lead to missed chances.

Understanding the limits and approval processes

When South African residents move money offshore, it involves both the South African Revenue Service (SARS) and South African Reserve Bank (SARB), depending on the amount in question. Your clients should familiarise themselves with the following three key thresholds:

• Up to R1m – No SARS clearance needed

Any amount below R1m per calendar year falls under the Single Discretionary Allowance (SDA) and can be externalised without approaching SARS for prior approval or tax clearance.

• Between R1m and R10m – SARS AIT required

To move funds in this range allowed under the

Foreign Investment Allowance, South African tax residents must obtain a SARS Approval of International Transfer (AIT) serving as a Tax Compliance Status (TCS) Pin. Once issued, an authorised dealer (typically the bank) will automatically accept the SARS AIT and transfer up to R10m, without having to involve SARB.

• More than R10m – SARS AIT and SARB approval needed

For amounts exceeding R10m, SARS still has to issue the AIT but applies a far more rigorous audit process. This high level of scrutiny requires a professionally prepared application from experts. In addition, any amount above R10m demands a separate layer of approval from SARB’s Financial Surveillance (FinSurv) department, submitted by an authorised dealer.

In our experience, SARB approval is a mere administrative step and formality following SARS issuing an AIT Pin. In practice, we have never encountered a rejection or undue delay from SARB.

A practical example

If SARS issues an AIT Pin reflecting tax clearance for, say, R50m, your clients may immediately transfer R10m abroad under the FIA. However, to transfer the remaining R40m, they first need SARB

local currency into a stable foreign currency. This is the first step in reducing exposure to rand depreciation. Depending on the chosen solution, investors can also benefit from favourable tax structures. For example, the Glacier Offshore Investment Plan, which has a minimum monthly investment of R5 000 per month, is a discretionary investment where capital gains are taxed in the foreign currency, meaning the depreciation of the rand doesn’t inflate your tax liability. Over time, this can result in significant savings.

Managing risk intelligently

Investing offshore isn’t just about chasing returns – it’s about creating a well-balanced, globally diversified portfolio. While it’s important to be aware of factors like currency movements, geopolitical developments, and market shifts, these dynamics also present opportunities for growth and value creation. With Glacier International, South Africans can confidently explore these opportunities while complying with South African Reserve Bank (SARB) exchange control regulations when externalising funds. By diversifying the rand, leveraging tax-efficient structures, and tapping into the world’s best investment ideas, investors can build resilient portfolios that thrive over time. With Glacier International’s solutions, you’re investing with insight and purpose.

Visit www.glacieronline.co.za for more information or speak to your adviser about our solutions.

clearance. Dealing with these cases, we find this can take typically two to three weeks, meaning clients should plan accordingly.

Apply for an AIT before it is needed

An AIT clearance from SARS is an excellent way to ensure your clients are fully reconciled with SARS and ready to act should market conditions turn favourable. We recommend that all HNWIs apply for an AIT proactively, considering the total amount they plan to externalise within the next 12 months, even if they do not intend to transfer the full funds immediately. Where an AIT Pin is valid for 12 months, it gives flexibility in terms of timing and strategy.

In summary:

• Step 1: Obtain SARS AIT/TCS Pin.

• Step 2: Externalise the first R10m under the FIA.

• Step 3: Apply via a bank to SARB for approval to move any excess above R10m.

Plan ahead

Moving funds offshore does not need to be complex, but it does require careful sequencing and a clear understanding of the distinct roles of SARS and SARB. SARS confirms tax compliance, while SARB governs how and when capital may flow out of the country.

Tax consultants, such as Tax Consulting SA, specialise in managing this process, from securing SARS clearance and liaising with authorised dealers to handling SARB FinSurv submissions. With expert support, your clients can move your funds offshore efficiently, timeously, and in full compliance with South African regulations.

The global market is full of opportunities. Ask your financial adviser how the Glacier Offshore Investment Plan can help you unlock them. The Glacier Offshore Investment Plan is an investment solution which offers you the opportunity to invest offshore, accessing different markets and currencies with simplicity, flexibility and a modest investment minimum of R5 000 per month. Visit www.glacieronline.co.za for more information or speak to your adviser about our solutions.

FROM R5,000 PER MONTH

With some insurance products, there are pitfalls, conditions and caveats that mean your clients cannot truly rely on their cover. With PPS, it is very different – not only does the PPS Sickness and Permanent Incapacity benefit qualify them for a PPS Profit-Share Account™* but it is tailored for the lifestyles and needs of graduate professionals. Your clients can enjoy peace of mind, knowing that their earning ability is protected should they become seriously ill.

What every financial adviser should know about income protection

Compiled by Sandy Welch Editor, MoneyMarketing

When it comes to financial planning priorities, income protection often gets less attention than life cover or retirement savings; yet, it’s the cornerstone of financial security. Without an income, everything else becomes unstable: savings erode, debt grows, and long-term plans derail. For financial advisers, understanding income protection isn’t just about product knowledge, it’s about empowering clients to preserve their most valuable asset – their earning potential. Here are five key points every financial adviser should know about income protection and how to position it effectively within a holistic financial plan.

1. Income protection is not a luxury Clients often prioritise insuring assets like cars and homes while overlooking the one thing that pays for everything else: their income. Advisers need to reframe income protection as an essential form of insurance, not an optional extra. A useful analogy is this: if your client had a machine in their backyard that printed their monthly salary, they’d insure it immediately. Their ability to work and earn is that very machine. Advisers should help clients understand that income protection replaces up to 75% (sometimes more, depending on the insurer and product structure) of their income if illness or injury prevents them from working. It’s a vital safety net that ensures financial stability during unforeseen circumstances – and protects longterm financial goals like education funding, home ownership, and retirement planning.

2. The details matter

Not all income protection policies are created equal. Advisers must look beyond the headline benefits and compare key features such as:

• Definition of disability: Some policies cover own occupation (unable to perform the specific job the client trained for) versus any occupation (unable to perform any job suited to their education or experience). The difference can drastically impact a claim outcome.

• Waiting periods: Policies may include waiting periods ranging from seven days to six months before benefits are paid. The shorter the waiting period, the higher the premium – but for certain professions or those with limited emergency savings, shorter waiting periods may be critical.

• Benefit escalation: Advisers should ensure benefits increase annually to keep pace with inflation. Without escalation, a client’s monthly payout can lose purchasing power quickly during a long-term disability.

Understanding these nuances allows advisers to match policy structures to client needs, whether they’re self-employed professionals, salaried employees or business owners.

3. Review regularly because life changes

A client’s needs, income and professional responsibilities change over time, and so should their cover. For instance, a client who was earning R30 000 a month when their policy was first taken out may now be earning R60 000, but if their benefit hasn’t been adjusted, they could find themselves seriously underinsured. Similarly, someone who transitions from corporate employment to self-employment may require a different policy structure to reflect fluctuating income. Advisers should build annual or biannual policy reviews into their client engagement cycle. These reviews ensure that benefit amounts, waiting periods, and escalation rates remain appropriate and that the client’s cover continues to reflect their real financial exposure.

4. Income protection doesn’t replace other cover Income protection should be seen as part of a comprehensive protection strategy. It works best alongside life and critical illness cover, not in isolation. For example, a critical illness payout provides a lump sum to cover immediate medical or lifestyle adjustments following a diagnosis, while income protection provides an ongoing monthly benefit if the client can’t work for an extended period. The two products together provide both liquidity and sustainability. Advisers should also integrate income protection into broader financial goals, such as debt management and retirement planning. If a client becomes disabled and can’t work, their

“Advisers need to reframe income protection as an essential form of insurance”

ability to contribute to their retirement fund halts, unless income protection is in place. This ensures that even in a worst-case scenario, contributions can continue and long-term financial independence remains achievable.

5. Focus on empathy, not fear

The best income protection conversations aren’t driven by scare tactics, they’re built on empathy, understanding and storytelling. Clients are more likely to act when they can see how the product protects their lifestyle, family and future. Advisers can use real-life examples (without breaching confidentiality) or relatable scenarios:

“What would happen if you were unable to work for six months due to illness?”

“How long could your savings sustain your household expenses?”

“Would your children’s education plans stay on track if your income stopped?”

By shifting the conversation from “insurance” to “income continuity”, advisers can connect emotionally with clients’ real fears and aspirations, positioning themselves as protectors of financial wellbeing rather than just product sellers.

Protect the present to secure the future

Income protection is not just about replacing a salary, it’s about protecting a client’s dreams, commitments and financial future. For advisers, it’s an opportunity to demonstrate tangible value: transforming a client’s financial vulnerability into resilience. In a world where uncertainty feels increasingly permanent, income protection is one of the most powerful tools in an adviser’s arsenal. When structured and explained properly, it ensures that a client’s financial plan continues, no matter what life brings.

Income protection: Putting the fundamentals first

By Nic Smit

Product and Pricing

When it comes to financial planning, advisers traditionally start with life cover and investments, with income protection added later if there’s budget left over. But this approach doesn’t always align with clients’ biggest risks. Starting with income protection creates a more efficient foundation for financial security, both now and in the future.

Insights from Bidvest Life’s 2024 Claims Report1 highlight that the risk events younger clients are most likely to claim for differ significantly from the risks that are usually insured against first:

• 30- to 39-year-olds made up 36% of income protection claims, but only 2% of all death claims.

• Clients under 30 made up 11% of all income protection claims, and again just 2% of all death claims.

• Full-time tertiary students ranked among the top three occupation groups to claim under Event-Based Cover.

To take this one step further, a 30-year-old male is six times more likely to experience an injury or illness that prevents him from working for two weeks or more, than he is to pass away before retirement2 – yet the majority of financial plans still start with life cover.

These figures show that the relative likelihood of being temporarily disabled compared to dying is much greater for younger clients. This highlights why an income-first approach is so important for younger clients.

At the same time, the nature of work in South Africa is changing – fast – and the life insurance industry is under pressure to keep up. A Fairwork Project study indicates the post-Covid annual growth of the local gig economy at 10%³. More than 30% of working South Africans are now in non-traditional sectors⁴, and as many as 3.1 million people work in South Africa’s informal economy⁵. While gig workers, freelancers, and entrepreneurs represent a growing share of the workforce, many have historically been excluded from protecting their most valuable asset: their ability to earn an income.

Traditional products were built for permanent, salaried employees. Roles like homemakers and students were unrecognised, and new careers like online fitness instructors to social media influencers didn’t exist. Recognising this need, Bidvest Life developed an alternative version of temporary disability cover, Event-Based Cover, for those who may not qualify for cover under traditional definitions.

The reality is that injury, illness, and unexpected life events don’t discriminate by occupation. Cancer, heart attacks, and infections can affect anyone, whether they’re a salaried executive or a sports coach. Only providing income protection based on how someone earns a living denies millions of South Africans the ability to secure their livelihoods.

Each year, Bidvest Life calculates the percentage of people who claim on Event-Based Cover as a share of all temporary disability benefits. This figure has steadily increased and, in 2024, exceeded 10% for the first time6, proving that more people are now able to protect themselves against temporary disability than ever before.

Leading with income protection isn’t just a philosophy. It’s how Bidvest Life helps advisers achieve better outcomes for their clients, and how we’re able to pay claims when it really matters. In 2024, Bidvest Life paid 90.4% of all unique income protection claims lodged7

The conversation should start with what every working client depends on most: their ability to earn an income. Protecting that income is a fundamental of sound financial planning, not an afterthought.

1 6 7 Bidvest Life 2024 Claims Report 2 Non-smoker; retirement age 70; 2019 Risk Reality Survey 3 https://fair.work/wpcontent/uploads/sites/17/2020/11/Covid19-SA-Report-Final.pdf 4 https://saueo.co.za/2024/12/02/the-gig-economychallenges-and-opportunities-for-south-africa/ 5 https://www.statssa.gov.za/publications/P0211/Presentation%20 QLFS%20Q1%202023.pdf

By Chris Coetzee CEO at FinFix

The hidden policy every adviser should talk about

Many South Africans are unknowingly paying for an insurance policy that could protect them from financial collapse –and most financial advisers aren’t talking about it.

It’s called Credit Life Insurance, and if your clients have taken out a personal loan, opened a store account, financed a car, or even signed up for a credit card, they may already have it. Yet, few understand what it covers or how to claim when life takes an unexpected turn. For advisers, this presents a unique opportunity to add immediate, practical value, by helping clients uncover a benefit they’re already paying for.

1 Understand what Credit Life Insurance does

Credit Life Insurance covers debt repayments if a client dies, becomes disabled, critically ill, or is retrenched. Depending on the policy, it can pay off the full outstanding balance or cover monthly instalments for a set period.

Advisers should highlight how this cover acts as a debt safety net, ensuring that a client’s family isn’t left with unexpected financial obligations. It also provides breathing room during job loss or illness, a particularly relevant benefit in today’s uncertain economic climate.

2 Help clients identify existing cover

Many clients have Credit Life Insurance built into their credit agreements, but don’t realise it. The premiums are often hidden under terms like ‘insurance fee’ or ‘value-added product’. Encourage clients to review their credit agreements and bank statements for such charges. If anything looks unclear, they should request a copy of the policy wording from the credit provider. As an adviser, helping clients interpret this fine print not only deepens trust but may uncover protection they didn’t know they had.

3 Explain when and how to claim

Advisers should educate clients about the conditions under which claims can be made, such as death, disability, retrenchment or temporary incapacity. Claims are often time-sensitive; delays can lead to missed payments and damage to a client’s credit record. A practical tip: create a checklist or client guide summarising what documents are typically required to claim. This small proactive step can make a huge difference during stressful times.

4 Address the awareness gap

Credit Life is built into millions of credit agreements and deducted every month. Yet most people only discover it after defaulting on payments. Advisers are well-positioned to close this gap. By asking the right questions during client reviews, for instance, “Do you know if your debt repayments are insured?” advisers can demonstrate care, identify hidden value, and even help prevent clients from falling into unnecessary debt.

5 Use it as a gateway to broader financial planning

Discussing Credit Life Insurance naturally leads to conversations about financial protection more broadly, including income protection, emergency funds and debt management. By showing clients that their credit-linked insurance isn’t enough on its own, advisers can help them build more comprehensive protection strategies.

The bottom line

Credit Life Insurance is one of the most underutilised tools in South Africans’ financial lives. As a financial adviser, helping clients understand, locate, and claim on this cover is a simple but powerful way to improve their financial resilience and strengthen your role as a trusted partner in their financial wellbeing.

Helping clients protect what matters most: The evolving role of income protection

In today’s unpredictable world, protecting an income is fundamental to long-term financial resilience. Recent claims data shows that disability and impairment can strike at any stage of one’s working life, often during peak earning years when financial responsibilities are at its highest.

In 2024, Momentum Life Insurance paid out R281 million in income protection claims, reflecting a continued rise in the value of payouts and reinforcing the importance of this benefit as a financial safety net.

Data from their 2024 claims report shows that individuals aged 40 to 59 once again made up the majority of claimants, representing over half of all their income protection claims.

A significant portion (around 45%) of the value of claims were for permanent disabilities, demonstrating that many clients continue to face long-term disruptions to their earning potential during their peak working years.

Tailored protection through flexible design

Momentum Myriad’s range of income disability and impairment benefits has been designed to meet the diverse needs of clients — whether employed, selfemployed or business owners. Myriad’s portfolio allows advisers to customise protection across a broad spectrum of needs, ensuring continuity of income and peace of mind when clients can no longer work due to temporary or permanent disability.

Key features include:

Comprehensive cover: Up to 100% of a client’s net income can be protected in the event of temporary or permanent disability.

Flexible structuring: Advisers can tailor cover using different waiting periods, payment terms and funding options.

Segment-specific solutions: Benefits are available for salaried professionals, business owners and clients who already have group cover.

The best of income and lump sum disability benefits

Income protection remains the foundation, providing clients with ongoing financial stability when illness or disability prevents them from working. However, some clients also face unique financial pressures after a permanent disability, such as settling debt, adapting their homes, or restructuring investments.

Momentum’s Permanent Disability Enhancer extends the flexibility of income protection by combining the strengths of income and lump sum cover within a single solution. It allows clients to choose how their benefit is paid — as a regular monthly income, a lump sum, or a blend of both — depending on their financial circumstances at the time of claim.

This ensures that long-term certainty is balanced with immediate access to funds when needed. Importantly, if a client passes away before their chosen

retirement age after a permanent disability claim has been approved, any remaining income payments are converted into a lump sum payout to their estate.

By integrating both income continuity and capital access, the Permanent Disability Enhancer complements the broader income protection strategy, helping clients maintain financial resilience across every stage of recovery and beyond.

Certainty through objective definitions

Myriad maximises claims certainty for clients as claims are assessed not only on the ability to perform their own occupation, but also against a set of clearly defined impairment and illness events. These are based on medical definitions and criteria, making the process more transparent and less subjective.

Supporting recovery and continuity

The unique Partial Claim Upgrade ensures that clients who return to work on a part-time basis after a disability continue to receive their full benefit for up to a year for non-professional occupations and up to two years for professional occupations. This approach recognises the real impact of partial disabilities, simplifies claim assessments and encourages gradual reintegration into the workplace.

Richness of features and market-leading options

Myriad offers one of the broadest selections of features in the market, including:

Built-in predefined impairment and illness events

Defined payout levels and payment periods

Claim Increase Booster for young professionals

• Annual commutation option

Premium guarantees and waiver of premium during a claim

LifeReturns® premium discounts of up to 35%

Retirement Booster, which can return a significant portion of premiums

Protecting income as part of holistic planning

Income protection is more than just an insurance policy; it’s a cornerstone of financial planning. Momentum Myriad’s range of flexible, technically robust benefits enables advisers to design protection that evolves with clients’ financial journeys, ensuring their goals remain within reach even when life takes an unexpected turn.

By Francois du Toit CFP® PROpulsion

Stop guessing at AI ethics: Use the code you already know

Have you or someone on your team ever pasted client information into ChatGPT? This is happening in advisory firms right now. Someone needs a quick summary of a client meeting, they copy the notes into a free AI tool, and thirty seconds later, they have clean bullet points. The work feels efficient, the risk feels distant, but the breach is real. You do not need to wait for new regulation before managing this. You already have a framework that works: the FPI Code of Ethics.

Map the risks to principles you already know AI introduces real risks: bias in algorithms, data breaches, lack of explainability, and the temptation to defer judgment to a machine. These are not new ethical problems. They are new versions of problems the FPI Code already addresses.

The Code gives you nine principles and each one translates directly to AI use.

Clients First means AI must serve the client’s best interest, not just speed up your workflow. Using AI to generate multiple scenarios for discussion helps them. Using AI to speed up advice without checking if the output suits the client does not.

Integrity requires you to stand behind the output. If you cannot explain why the AI suggested something, you cannot use it. You must disclose AI involvement and choose tools you can audit.

Objectivity means AI is a second set of eyes, not a replacement for your judgment. Accepting the first answer without questioning it hands over the decision to the machine.

Fairness demands you test tools with different client profiles before you trust them. Run the tool with varied cases and make sure it treats everyone fairly.

Confidentiality is the area most firms struggle with. Public AI models are not secure. Free ChatGPT with client names and financial details is a POPIA breach waiting to happen. Best is to use local AI tools or enterprise solutions with data protection agreements.

Diligence requires review and validation before use. Copy-pasting AI output directly into a Record of Advice is not diligence. Review it. Factcheck it. And document your verification process. Professionalism means evaluating tools against clear criteria aligned with your values; not adopting the latest tool because your competitors are.

Competence means understanding what you are using. If you do not know how the tool works or its limitations, you are not yet competent to use it. Train on the tool’s capabilities, test it thoroughly, and know when not to use it.

Accountability is the principle that closes the loop. You take full responsibility for AI outputs as if they were your own work. Document how AI was used, verify all outputs, and be prepared to justify decisions to clients and regulators.

According to POPIA Section 71, human review is required for automated decision-making. The Code gives you the ethical framework, while the law gives you the legal floor.

Choose tools that match your ethics

Not all AI tools are equal. Before you adopt a tool, ask four questions.

Is it POPIA compliant? Does it store data locally or in South Africa? Does it have a data protection agreement that prevents reuse of client data? Can it produce explainable outputs that you can audit and justify?

If the answer to any of these is no, walk away. Enterprise and business versions of tools like ChatGPT, Claude, or Microsoft Copilot often have better data policies than free versions. Local AI tools that run on your own servers give

you full control. Whatever tool you use, insist on exportable data and open APIs so you are not locked in.

Build a crawl-walk-run plan for your firm

Start small. Stay in control. Scale responsibly. Crawl means internal use with low risk. Use AI for transcriptions, drafts, and note summaries where no client data is involved.

Walk means client-facing use, but always supervised. Generate risk profiles or meeting summaries, but a human must first approve every output before it reaches the client.

Run means high-impact use like strategy modelling or advice generation. Only move to this level once you have policies, training, and oversight in place. Assign someone in your firm to own AI governance and monitor tools regularly.

Write a simple AI use policy by answering four simple questions: What tools are approved? What uses are prohibited? Who is responsible for oversight? What is the plan if something goes wrong?

Then train your team on the policy. You must review the policy every six months as the tools evolve.

Ethics is your edge

Using AI ethically is about building trust. Clients will ask how you use AI, and regulators will ask how you govern it. Your answer will matter greatly. Start this week by auditing your current AI use and draft a one-page AI policy. Or pick one lowrisk use case, run a pilot, and document what you learn. The smallest viable next step is the one that protects your clients and keeps your firm in control.

Stay curious!

By Anri Dippenaar Masthead Head of Compliance

The Financial Sector Conduct Authority (FSCA) has published its revised OmniRisk Return and explanatory note, initiating an industry consultation process to gather input from financial institutions. Here’s what financial service providers (FSPs) and other institutions need to know about the potential impact – and how they can prepare.

The FSCA has outlined its revised Omni-Risk Return and explained how it will form part of a broader supervisory risk model under the Integrated Regulatory Solution (IRS). The explanatory note has been published to guide industry input during the consultation phase.

What has changed?

The Omni-Risk Return, as the first phase of the FSCA’s revised Omni-CBR approach, supports the IRS through an automated risk model. It has been restructured into twelve sections, covering key aspects of an institution’s operations, governance and risk profile – from ownership and group structures, customer base and handling of assets, to complaints management, IT and data governance, outsourcing and financial data.

To strengthen accountability, the FSCA proposes that institutions include a declaration signed by a member of their governing body or executive committee, confirming the accuracy and completeness of the information submitted.

The regulator also proposes that submissions be made annually, although this may change. This marks a shift from its earlier quarterly proposal, which was revised following feedback from industry bodies, including Masthead.

How financial institutions are impacted

The revised Omni-Risk Return changes the way information will be collected and assessed by the regulator. For financial institutions, this means reviewing internal processes and data readiness to ensure they can meet the

new requirements. The FSCA will use the data to strengthen risk-based supervision, flag early warning indicators, benchmark industry performance, target enforcement where needed, and inform policy development.

Two points are critical here: Data and Treating Customers Fairly (TCF). Financial institutions should consider not only whether they have the required data, but whether the data they collect demonstrates compliance in a meaningful way. In the past, compliance could often be a tick-box exercise. Going forward, the emphasis will be on using data to prove that compliance outcomes are being met.

Institutions that have already placed greater emphasis on data readiness, outcomesbased supervision and TCF are likely to be in a stronger position to adapt to the revised return. Others may need to review their data collection processes to identify gaps and ensure the information they hold can stand up to regulatory scrutiny. Industry bodies and compliance providers can support institutions in reviewing the requirements and providing coordinated feedback to the FSCA.

“Two points are critical here: Data and Treating Customers Fairly (TCF)”

Next steps

The consultation process will run from 1 October to 30 November 2025, with comments submitted via a structured Microsoft Forms template aligned to the 12 sections of the return. The comment period will close on 30 November 2025. Institutions may submit comments directly to the FSCA or through an industry body, which can help consolidate feedback and reduce the burden on individual businesses.

In addition, three virtual workshops are planned for November 2025 to provide further engagement and clarification.

Engage and assess

The revised Omni-Risk Return represents a significant step in the FSCA’s move toward integrated, data-driven supervision. It’s crucial for financial institutions to engage with the consultation process and assess their readiness – this will help them prepare for a more standardised and accountable supervisory framework.

Institutions should also engage with their relevant industry bodies for more insight into how this will impact their businesses, or seek the help of a compliance service provider.

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