No guarantee that your nominated beneficiary will get your money when you die
Did you know that the Trustees of retirement funds don’t have to pay the money to the nominated beneficiaries?
The Money Show's Bruce Whitfield refers to a case where a relative died and left assets as well as retirement annuities to his children.
One of the companies paid out - and the kids got their money 50/50.
But the other did not - it apportioned four per cent to the daughter and 96 per cent to the woman who had for four years been living with the deceased at the time.
It's assumed she had petitioned, and the trustees agreed, even though the children were named beneficiaries.
Warren Ingram, financial advisor explains.
It is actually much more normal than we think...Warren Ingram, wealth planner
Twenty years later some arbitrary people you've never met in your life... are going to have to decide whether they're going to follow your wishes or give your money to somebody else sounds outrageous...but there is a whole law around it and it's called the Pension Funds act.Warren Ingram, wealth planner
The obligation is on trustees to make sure they are actually looking after the person who died's dependants... it's quite clear in the law, that could mean you disregard the wishes of the retirement fund member.Warren Ingram, wealth planner
Listen to the interview below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
Low interest rates and plenty of deals on offer - personal finance guru Warren Ingram points out the pitfalls on The Money Show.Read More
Warren Ingram explores the options, focusing on case study of guest house owner whose investments equal outstanding bond amount.Read More
Bruce Whitfield and personal finance expert Warren Ingram get to grips with why perhaps you shouldn't, if you didn't...Read More
On The Money Show, finance expert Warren Ingram explains why he believes the pros of the regulation outweigh the cons.Read More
Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.Read More
Personal financial adviser Warren Ingram says active fund managers in South Africa have had a terrible time.Read More
Warren Ingram, wealth creator, answers listeners' questions about safe investing in anxious times.Read More
What is the concept of "market timing" and how can it help investors?Read More
The Covid-19 pandemic and the economic destruction in its wake has left some of us wondering if we'll ever be able to retire.Read More
Personal finance expert Warren Ingram shares his concerns and offers a few pointers.Read More