As part of Sanlam Umbrella Fund’s ongoing focus on improving member understanding and simplifying retirement planning, the option for members to select their own Planned Retirement Age has been removed from 1 April 2026.
This decision is informed by member behaviour, consultant feedback, and the need to reduce unnecessary complexity in the retirement journey.
Understanding Planned Retirement Age and Normal Retirement Age
Each participating employer in the Sanlam Umbrella Fund has a defined Normal Retirement Age in the Fund Rules. The Normal Retirement Age plays a central role in determining retirement‑related processes, including default Lifestage investment switching, benefit projections, and the timing of retirement communications.
The Planned Retirement Age was introduced to allow members to indicate an alternative intended retirement age based on their individual needs and circumstances. However, experience has shown that this additional option did not meaningfully enhance engagement and, in some cases, created confusion.
Why the Planned Retirement Age Option Has Been Removed
Member selection of a Planned Retirement Age has been very limited across the Fund. The vast majority of members defaulted to the Employer’s Normal Retirement Age, suggesting that the option was neither widely used nor clearly understood.
Where a Planned Retirement Age was selected, having two different retirement ages often created uncertainty for members, particularly when different ages appeared on statements, projections, or communications. This made it more difficult for members to understand when Lifestage investment switching would occur, and which retirement age ultimately applied.
In some cases, mismatches between Planned Retirement Age and Normal Retirement Age were not intentional and resulted in Lifestage investment strategies de‑risking earlier or later than intended, potentially impacting retirement outcomes. Removing the Planned Retirement Age option helps ensure greater alignment, consistency, and clarity for members.
Impacted Members
Members that have selected a Planned Retirement Age that differs from their Normal Retirement Age will receive a detailed communication on how the change will impact them, if at all in the coming months.