Newsletter • Quarter 3 • 2021
BUYING an outside RETIREMENT PRODUCT WILL COST YOU MORE
There are large money-saving benefits in being invested in the Woolworths group retirement fund versus buying your own outside retail product.
MOST RETIREES will be better off by remaining invested in our retirement fund.
Why are the fees and costs lower?
What our retirement fund offers is called an institutional product, when many people invest in the same product, for example our In-fund Living Annuity or AFRIS.
In this group arrangement, our fund trustees negotiate the fees on everyone's behalf. Because there are so many people, you enjoy the benefit of economies of scale – in other words, cheaper fees because so many members are using the same product.
Why does a retail product cost more?
A retail product is usually sold to an individual and, as an individual, you don't enjoy the benefit of economies of scale. This means you pay more because the costs associated with your purchase are not shared across as many people.
In other words, you alone will absorb all the costs.
With retail products, your administration, investment and other fees are typically much higher than what you would pay for a similar institutional product.
So it is best that you remain invested in our Fund.
Interesting Fact
You will find that the Woolworths Group Retirement Fund is the most cost-effective vehicle for saving for your retirement. It is also the most tax efficient.
Save now! Look after the future you.