Glacier IdeasLab

The much-anticipated annual Glacier 2022 IdeasLab webinar, examined what it means to retire with confidence in a world of uncertainty.

Below are synopses of the presentations and panel discussion as well as the recording of the webinar.

25 years of world-class opportunities, and more to come
Purposeful retirement regulation
Panel discussion
Plan for the 21st Century retirement
Webinar recording

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25 years of world-class opportunities, and more to come

What does a purposeful and prosperous retirement look like? In his presentation, Werner Lotriet, Head of Glacier Business Development, outlined the need for holistic financial planning that has the financial and human aspects of retirement planning at its heart. With changing regulation, whether clients retire in the private or public sector, and with increasing risks for retirees such as sequencing and longevity, Glacier is positioned to partner intermediaries through its solutions, tools, access to experts and the myriad opportunities that Glacier’s extensive growth strategy present.

Werner pointed out that in recent NMG research, intermediaries have been quite expressive about what they expect from a LISP in this challenging and competitive industry. They are looking for real-time responsiveness; cutting-edge technology; relationship management and a balance between price and service. All of these factors add to their value propositions and are critical to the success of their practice. At Glacier, partnering with intermediaries means responding to their needs in ways where we are a partner in their practice and solidify relationships with intermediaries and clients.

View presentation

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Purposeful retirement regulation

Annalise De Meillon Muller, Manager: Sales & Distribution Support at Glacier by Sanlam, took delegates through a quick run-through of past and present regulatory changes in the retirement space. She stressed that retirement income stream management entails shifting the focus from the product or solution to the end-goal, i.e. achieving a sustainable income that lasts for the rest of one’s life.

Upcoming regulation has a strong focus on preservation of savings, along with retirement fund consolidation, leading to improved governance and conduct.

The biggest retirement reform change is the proposed ‘two-pot’ system – taking away full access to retirement savings on resignation and introducing auto enrolment into retirement savings vehicles.

These changes will continue to affect and change the savings mindset and culture of SA citizens. Industry also has an important role to play here. Ultimately, the regulatory changes aim to achieve financial inclusion and increased financial security.

View presentation

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Panel discussion

A moderated deep-dive discussion where four management companies debated the Regulation 28 changes with respect to offshore allocations.

In the panel discussion moderated by Francis Marais, Head of Glacier Research, guests from Denker Capital, Prescient Investment Management, M&G Investments and Satrix Investments, debated recent Regulation 28 changes with respect to offshore allocations.

What is it about SA equities that make them so attractive? Where and how do we allocate and do opportunities lie in the SA, the US or in global equity markets? How do we include alternatives and how should we approach currency hedging and its apparent costs?

Mitigating risk through diversification is what investors should prize the highest – its benefits cannot be overstated. This is the one point that the participants agree upon wholeheartedly. Another is their agreement of the limited investible universe in SA.

However, their distinctly different approaches to offshore as well as local investments are fascinating in an industry where diversification spans so much in variation – geography, markets, sectors, asset classes and stocks.

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Plan for the 21st Century retirement

Steve Vernon, President of Rest of Life Communications, reminded delegates that most retirees in developed markets around the world don’t have enough saved to retire at age 65 and maintain their current level of spending. Retirees need to lengthen their planning horizon to cover the rest of their life – they need a plan for at least 20 to 30 years. The 20th Century arc of life typically had three phases – childhood/early adulthood, followed by middle age/career/family, and finally full retirement. As lifespans increased, we kept adding years into the retirement bucket. We’ve now started to add a second middle age, where people still have freedom and independence. This gives them a chance to consciously plan their retirement stage.

Uncertainties include how long people will live, how healthy they’ll be, and what inflation and the investment markets will do. Retirees need to be flexible and be prepared to adjust their plans as they go along.

Steve discussed some of the things people need to consider prior to retirement, the levers they can use in their planning, as well as financial planning and investment techniques and strategies.

In the 21st Century we need a more robust definition of retirement – “to live well as long as you can.”

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Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.
Sanlam Life is a licensed life insurer, financial services and registered credit provider (NCRCP43).