What does the contentious Regulation 28 mean for your retirement funds?
Regulation 28 of the Pension Funds Act aims to protect precious retirement investments by ensuring responsible management of fund assets.
RELATED: Investing in a retirement fund? Get expert advice on choosing the best option
As such, it limits fund managers' allocation of these investments to certain asset classes - equities are capped at 75% of a portfolio and offshore assets at 30%.
Critics maintain these restrictions are costing investors, but diversification is key says personal finance expert and Galileo Capital executive director, Warren Ingram
So that for example, they don't have all their money sitting in shares and then the stock market collapses and then they lose 30 or 40% of their money and potentially their retirement life savings.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
Instead of just leaving that to 'very honest and very trustworthy' fund manager... there were regulations that were put in place to say: These are exactly the limits that you can invest in.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
... if you really believe in shares, that's fine, but you can't have 100% of a retirement fund in shares. You're allowed 75% in shares, as an example.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
Ingram notes that the regulations have been updated regularly over the years and the principle of a good spread of assets applies to all investments.

The main talking point around a further adjustment to Regulation 28 at the moment he says, is how much can be invested outside of South Africa.
I think there's some logic to controlling the offshore allocation.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
It's one of those things where, especially for people who are close to retirement... people say they're really worried about South Africa and they send all their money out at R16 or R17 to the dollar and the cycle turns... and we see the rand say back at 11 to the dollar... This has happened quite a few times in the past.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
Find out more detail in the audio clip below:

Source : https://www.123rf.com/photo_63736780_retirement-planning-a-finance-money-calculator-notes-calculator-top-view-work.html
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