Pension funds play an important role in securing the futures of minor beneficiaries of members who die prematurely.
This is the view of Danie Hattingh, principal officer of the Building Industry Bargaining Councils BIBCs Pension and Provident Fund, who says a pension fund is so much more than saving for retirement it is also a crucial vehicle for ensuring the minor children of employees who pass away have a solid financial platform able to meet their daily living requirements.
However, he says that where pension funds were once viewed as part and parcel of most employment agreements, this is no longer the case for many South Africans. A survey of more than 5 000 employees last year established that only 36 of respondents were able to access a retirement fund. Of even more concern was that only 7 of retirees felt prepared for their retirement years.
Yet there is no question that pension funds remain a critical source of financial security.
Furthermore, they carry several advantages.
