Pension Fund contributions

[Bra B]

Just received my pension fund statement and saw that there was a negative return on investment for the year. May I ask my employer to pay my pension contribution to an investment company of my choice?

 

[supersunbird]

Just received my pension fund statement and saw that there was a negative return on investment for the year. May I ask my employer to pay my pension contribution to an investment company of my choice?

For last year up to 31 Dec 2018 or up to 28 Feb 2019?

Anyway, most Balanced Fund unit trusts were negative 1 Jan to 31 Dec 2018. My 10X employer fund was one of those.

Some employers offer a selection of funds to choose from, others don't. Some employers offer you to choose how much you contribute (most 5% min to 27.5% max), some might even allow 0%. None will pay a pension fund contribution into just any fund of your choice, they would need to setup something formal with a provider.

So ask your employer what is the minimum and change it to that. Then invest your money monthly yourself into whatever RA you want. Your employer might be able to work that RA contribution into your salary slip so enjoy the tax benefit immediately, or else you will have to wait for e-filing time to get the excess tax back via refund.

The potential negative in some peoples view, is that you will not be able to access the RA contributions when chancing jobs or when becoming unemployed, unlike with an employers pension or provident fund.

 

[Cius]

Mine was also down, the whole JSE was down after all. The same funds were returning 25%+ in 2013 and those years. Don't look at short term returns, let it ride. If a fund has 5 and 10 year returns that are under inflation +6% and there are other funds that are achieving that regularly then is the time to switch.

 

[3WA]

You fund probably did okay in the first quarter this year:

https://www.businesslive.co.za/bd/markets/2019-04-01-jse-records-best-first-quarter-since-2007/

Boosted by a 15.2% gain by Naspers, the all-share index rose 7.1% in the first quarter, erasing most of the losses incurred through 2018.