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We implement your retirement investment plan


The execution of a retirement investment plan is as important as having a plan and is crucial to realising your retirement goals. It is therefore important to understand the investment process, the parties involved and the cost implications to your plan. Seeking professional advice in the design and implementation of your retirement plan is an important consideration.


Parties involved


The parties typically involved in the management and provision of your retirement investment products include:


The Financial Adviser


Your Financial Adviser acts as the provider of financial advice and guidance in assisting you to design, implement and review your retirement plan. The Financial Adviser will also assist in the selection of the investment product, manager and strategy applied to achieve your investment goals.



The investment product house/administrator


The product house provides and administers the investment vehicle through which your retirement savings are accumulated and paid. The investment capital is placed with the selected investment managers. The administrator also provides ongoing reporting on the value of your investment.



The asset manager/stockbroker


The asset manager/stockbroker is primarily responsible for managing investment portfolios that consist of various investment instruments that are purchased on local and international exchanges and are ultimately responsible for the performance of your investments.




The costs of your retirement plan


The costs typically involved in the management and provision of your retirement plan include:


  • Financial Adviser

The fees charged by the Financial Adviser are payable in the form of commission or an advice fee. Initial fees range from 0% to 1% while ongoing fees range between 0.5% and 1% per annum on the value of your investment.


  • Investment product house/administrator

The investment product house generally levies service and administration fees that vary between 0.2% and 0.75% per annum on the value of your investment. In most cases, a sliding fee scale is applied which benefits larger investments.


  • Asset manager

The asset manager charges a fee for the management of your assets that ranges between 0.5% and 2% per annum depending on the type of investment mandate. In some cases a performance fee is charged which is calculated as a percentage of the margin by which the investment objective is exceeded.



Retirement investment review process


Retirement investment planning should be approached as an ongoing process and not as a once off exercise. In order to increase your chances at achieving financial independence at retirement, your retirement investment plan needs to be reviewed on an annual basis.

This will allow you to make the necessary adjustments to your plan as your personal circumstances change as you progress through the various life stages.









After having reviewed your current financial situation, you will need to re-evaluate your retirement objectives and investment strategy and implement any changes required. This review cycle starts again at your next scheduled planning date.

Mistakes to be avoided when planning for retirement


Some of the most common mistakes to be avoided when planning for retirement are:


  • Not diversifying your investments. Don't put all your eggs in one basket. A properly
    diversified portfolio will assist you to reduce your investment risk while maximising

  • Not rebalancing. It is important to regularly rebalance the asset classes held in your
    investment portfolio.

  • Not preserving retirement savings. When moving between jobs, cashing out your
    pension can become subject to penalty fees and tax. You should consider transferring
    your retirement savings into a preservation fund. In particular, you should not resign
    from your job to get your hands on your retirement savings.

  • Paralysed by choices. Retirement planning is full of choices so don't be overwhelmed by
    them. Take your time and investigate all options. Retirement planning is all about the
    right investments.

  • Depending on a single source of income. Delay your retirement by a few years or turn
    a hobby into income. This will enable you to maintain your standard of living while
    providing for your retirement.

  • Not saving enough and starting too late. The principle of compound growth is a
    powerful tool in building up sufficient capital for retirement. You should always save as
    much as you can for retirement. If you do not start to save from your first income, you
    could face destitution in retirement.



Wise word

"Retired folks do what they want to do when they want to do it and they have the money to do it with. Everyone else is on pension."

G.A. McQuirk

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