KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES

Alexander Forbes enters into partnership to improve the outcomes for pensioners

14 March 2018 Andrew A. Darfoor, Alexander Forbes
Andrew A. Darfoor, Group Chief Executive of Alexander Forbes.

Andrew A. Darfoor, Group Chief Executive of Alexander Forbes.

Alexander Forbes has partnered with Just South Africa (subsidiary of the Just Group plc, a global financial services group listed in the UK) to launch a new retirement solution which combines the benefits of traditional asset classes and a lifetime income fund as part of a comprehensive range of retirement solutions, the Alexander Forbes Retirement Income Solutions (“AFRIS”).

Andrew A. Darfoor, Group Chief Executive of Alexander Forbes, says that the partnership with Just is designed to introduce a new framework to enable retirees to make a trade-off between their main objectives in retirement and structure the most optimal solution based on those goals.

“We have adopted the financial well-being philosophy as the anchor of our client value proposition and strategy. This approach better enables and equips clients to make informed choices and options over their lifetime. The launch of AFRIS, for instance, takes into account a retiree’s preference for providing a sustainable income, or providing an option for liquidity and inheritance planning. Depending on preference, this optimal investment strategy at retirement is then embedded into the Lifetime Income Fund providing longevity protection”, says Darfoor.

Darfoor says AFRIS has been launched against the backdrop of concerning statistics from the Alexander Forbes Member WatchTM survey which shows that the majority of individuals at retirement convert their savings into income at retirement using living annuities investing in traditional asset classes with no longevity protection.

“With the new framework and ability to invest in the Just Lifetime Income Fund, we aim to improve the overall outcomes of retirees at and during retirement”, says Darfoor.

Deane Moore, CEO of Just, says “Just entered the South African retirement market to develop sustainable retirement income solutions that take account of each individual’s particular circumstances. We are delighted to partner our underwriting and risk management capabilities with Alexander Forbes’ investment and administration capabilities to provide living annuity investors with the opportunity to secure an income which will last a lifetime.”

The solution, which has been designed in line with Alexander Forbes Investments’ outcomes-based Living*Investing approach, will be made available to Alexander Forbes retirement fund clients in the first quarter of 2018. The Living*Investing framework is a risk-led, forward-thinking investment approach aimed at achieving client objectives with greater certainty over their lifetime.

We aim to make this solution available, where appropriate, throughout the countries in which we operate, in line with our objective of offering our clients a lifetime of financial well-being and building Alexander Forbes into a globally distinctive pan-African financial services leader.

Quick Polls

QUESTION

Financial behaviour experts suggest that today’s risk modelling methodologies ignore your client’s emotional ability / behavioural capacity. What are your thoughts on spicing up risk profiling tools to make allowance for your client’s financial behaviours

ANSWER

[a] Bring it on; my client’s make too many irrational financial decisions
[b] Existing risk profiling tools are adequate
[c] Risk profiling tools should be based on the model / rational client
[d] The perfect risk profiling tool is science fiction
fanews magazine
FAnews April 2021 Get the latest issue of FAnews

This month's headlines

Randsomware attacks... SA businesses' biggest risk
Know the difference - compliance vs ethics
Better business by virtue of Beethoven
The future of vaccines
Harmonisation of retirement funds
Call centres and the maze of auto-prompts
The next 18 to 24 months are going to be tough
Subscribe now