Upload
weston
View
18
Download
0
Embed Size (px)
DESCRIPTION
Status Quo on Industry. IRF Conference 2013 RA Eboru. Retirement industry. A scheme for vulnerable works that possibly combines both member and government co-contribution. Challenge & Opportunity. 2.7m old age pensioners, total expenditure R3bn from R122bn. Social Assistance: - PowerPoint PPT Presentation
Citation preview
Status Quo on Industry
IRF Conference 2013RA Eboru
Retirement industry
2
Challenge & Opportunity
Non
cont
ribut
ory
Sche
mes
Social Assistance:
Child Support
State Old Age Pension
Disability, Forster Care
Care-Dependence Grant
National Heath Insurance
Government
Gap Funding:
Vulnerable worker segment
Unemployed LFS
Other
Formal Retirement Schemes:
Occupational Schemes: 85% members
Voluntary-Based Schemes 11% - 15% of
members
Taxes Workers and Employers
2.7m old age pensioners, total expenditure R3bn
from R122bn
A scheme for vulnerable works that possibly combines both member and government co-contribution
Contribution Schem
es
12m members; R2tr (RAs
R264bn; LA R180bn)
Source: Diagram adapted from SA Social Development 2011
SA Labor Market Analysis
3
Total population size of 49m (2013; LFS)
Total Labor Force33.3m (64%) people
Non Labor Force15.7m people
Active Labor Force
18.4m
Inactive Labor force
14.9m
Unemploye
d 4.7m (26%)
seeking work assumed to
be in informal
sector
Employed in formal
sector13.7m (incl
all industries)
1m - 2m members not linked to a formal
scheme(calculation est.)
5.5m PAYE taxpayers 5m SITE taxpayers(SARS Report 2010)
12m active members in formal retirement schemes
(NT; 2013)
Informal SchemesIncl. Stokvels & Burial societies 8m members +R44bn AUM,45% unbanked (African response survey; 2011)
Employee Benefits Schemes (pooled assets)
Life/Risk AUM R1.14trill
Pension R2trill
UIF : R45bn
Assets managed by fund managersTotal AUM R1.2tr (ASISA; 2012)
core contributors informal schemes
possiblecontributors to informal schemes
core contributors formal schemes
MembersAgentsConsultants
Scheme providers
Trustees
Beneficiaries linked to members
Employers 185 registered administrators
Advisory functions
34% of occupational
schemes90% voluntary
schemes
7k registered schemes
3k schemes with active members
StandaloneUnderwritten
Industry Specific schemes
Product examples967 DCIS319 FCIS
The futuristic intent is to achieve a cost efficient value chain, with little burden on member contributions without comprising on retirement benefits
Value Chain; Sector Analysis 2012, Formal Retirement Sector
Investment Managers
Source: Registrar of pension funds; STATS SA; ASISA
Basics of retirement savings
Basics of retirement savings: further considerations
Questions & Discussions
IRF Conference 2013RA Eboru