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2025-09

 

 
Issued September 2025
 
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In this newsletter...
  Benchtest 08.2025 – FIMA restarted, dividend tax, Benchmark turned 25 and more...  
 
Jump to...
     
IMPORTANT NOTES AND REMINDERS
 
  NAMFISA levies
  • Funds with September 2024 year-ends must submit their 2nd levy returns and payments by 24 October 2025;
  • Funds with March 2025 year-ends must submit their 1st levy returns and payments by 24 October2025; and
  • Funds with October 2024 year-ends must submit their final levy returns and payments by 31 October 2025.
Housing loan interest rate unchanged in August

The interest rate on direct housing loans remains unchanged in September at 9.25%. The minimum repayment amounts will also remain unchanged for September.


 		   Registered service providers

Certain pension fund service providers must register with NAMFISA and submit regular reports to the authority. Download a list of service providers registered as of August 2025, here...

Retirement calculator

Use our web-based retirement and risk shortfall calculator for your retirement planning. Find it here...

If you need help with your financial planning, get in touch with 
  • Annemarie Nel (tel 061-446 073)
  • Christina Linge (061-446 075)
  • Dennis Fabianus (061-446 098)
Toolbox for trustees

RFS provides comprehensive support for trustees. Find a list of download documents to assist with the governance and management of private funds, registered as of June 2024, here...
 		  
  
IN THIS NEWSLETTER...
 
 
In this newsletter, we address the following topics:
  
 
 
In 'Tilman Friedrich's industry forum' we present... 
  • Monthly review of portfolio performance – 31 August 2025
  • The FIM Act - a new start: RF.R.5.5, RF.R.5.7, and RF.R.5.8
  • New Dividend Withholding Tax: What Employers and Staff Need to Know.
In Compliments, read...
  • Compliment from a pensioner
In Benchmark: A Note from Günter Pfeifer, read about... 
  • Benchmark Retirement Fund celebrates 25th anniversary.
  • Important circulars issued by the fund.
In 'News from RFS', read about...
  • RFS welcomes Taikeisha Resandt and Grace Shifonono.
  • RFS crowned Juksei Champions.
  • Other Staff News.
  • Important circulars issued by RFS.
In 'News from NAMFISA, read about..
  • NAMFISA launches new complaints management system.
  
In 'News from RFIN', read about...
  • RFIN 2025 conference.
In 'Legal snippets', read about...
  • Power of attorney, a vital tool for pensioners.
  • Garnishee Orders v Maintenance Orders under Section 37A of the Pension Funds Act: A Legal and Practical Distinction.
In 'Snippets for the pension funds industry,' read about...
  • What many investors don’t know about their retirement fund.
  • Is return everything when choosing an investment?
In ‘Snippets of general interest', read about...
  • The power of appreciation.
  • The psychological shift no one talks about when you retire.
And make a point of reading what our clients say about us in the ‘Compliments’ section. It should give you a good appreciation of who and what we are!

As always, your comment is welcome, so open a new mail and drop us a note!

Regards
Tilman Friedrich		  
 
     
 
TILMAN FRIEDRICH'S INDUSTRY FORUM
  
Monthly Review of Portfolio Performance
to 31 August 2025
  
  In August 2025, the average prudential balanced portfolio returned 1.1% (July 2025: 2.3%). The top performer is the Allan Gray Balanced Fund, with a return of 1.9%, while the Lebela Balanced Fund, with a return of 0.5%, takes the bottom spot. M&G Managed Fund took the top spot for the three months, outperforming the ‘average’ by roughly 0.9%. The Investment Solutions Balanced Growth Fund underperformed the ‘average’ by 1.3% on the other end of the scale. Note that these returns are before (gross of) asset management fees. 

The Monthly Review of Portfolio Performance to 31 August 2025 reviews portfolio performances and provides insightful portfolio analyses.  Download it here...		  
 
 
   Which Equity Styles are Performing Well?
  
  Most investors assume the current bull market is all about “Growth” stocks, dominated by the US Magnificent-7. That is true in the US—but outside the US, the picture looks very different. In international markets, the “Value” style has been the clear winner, with sector composition, performance drivers, and valuations diverging sharply from the US story.

This matters because when most people refer to “global markets,” they are actually referring to the US. The US makes up nearly 75% of the MSCI World index, so what happens in the other 25% barely registers. Extrapolating US performance globally is misleading, as it suggests that investors may be missing opportunities.

Read paragraph 6 of the Monthly Review of Portfolio Performance to 31 August 2025 for an interesting perspective on global equity sectors. Download it here...		  
 

 
The FIM Act – a new start
Contributed by Carmen Diehl, C.A.(Namibia), Senior Manager: Risk Management and Compliance
 
 

 
The FIMA (Act 2 of 2021) was promulgated in Government Gazette no. 7645 on 1 October 2021. The Minister of Finance has not yet set an effective date. In the last several newsletters and the next few issues, we have presented and will continue to provide a brief overview of the latest status on standards and regulations.
 
This summarises the main provisions of draft standards and regulations under the FIM Act and implications for retirement funds.

Standards Chapter 5: Retirement Funds
 
RF.R.5.5 Loans which may be granted to a member and guarantees which may be furnished to a person in respect of a loan given or to be given by such person to a member

Summary:
  • This regulation outlines the conditions under which a retirement fund can grant loans to its members or provide guarantees for loans to members.
  • Loan and Guarantee Conditions: A fund can grant loans or provide guarantees if its rules allow it, and the loan or guarantee is for purposes such as redeeming a loan given to the member against security of a pledge of the member’s fund benefits/ immovable property, acquiring property, erecting a residence, or making improvements to a residence, occupied by the member or a dependent of the member.
  • Security Requirements: Loans or guarantees must be fully secured by a first mortgage on immovable property, or a pledge of the member's benefits, or both.
  • Interest Rates and Repayment: Loans must have an interest rate equal to the repurchase rate plus 4% and be repayable in equal instalments over a period not exceeding the member's remaining employable years or the duration of the right of leasehold.
  • Loan Limits: The amount of the loan or guarantee cannot exceed 90% of the fair value of the property or the lowest benefit the member would receive on termination of membership, with some conditions allowing up to 100% if the employer provides an irrevocable guarantee.
  • Restrictions and Exemptions: Funds cannot grant loans or guarantees if the member is already liable for another loan or guarantee, and they cannot invest in entities controlled by board members or officers. NAMFISA can temporarily exempt funds from certain provisions under exceptional circumstances.
What to do:
  • Funds offering direct or pension-backed housing loans should review their housing loan policy to ensure it complies with this regulation.
 
RF.R.5.7 The rate of interest payable on contributions not transmitted or received, and on the value of a benefit or right to a benefit not transferred, before the expiration of the applicable period

Summary:
  • The regulation specifies the interest rate payable on contributions or benefits not transmitted or received within the prescribed period.
  • Interest on Delayed Transfers: If a former member's transfer is not completed within the prescribed period (60 days from the request), the fund must credit the transfer value with interest at the prescribed rate.
  • Prescribed Rate: The interest rate is the repurchase rate set by the Bank of Namibia plus 4%.
  • Interest Calculation: Interest is calculated for the exact number of days between the expiration of the prescribed period and the completion of the transfer, using compound interest based on a 365.25-day year..
What to do:
  • The Fund’s Rules need to be amended to comply with this regulation.
  • The administration system of the administrator of the fund needs to be adapted to be able to calculate the interest as per the regulation.
  • Member withdrawal notice to be amended to contain the information and declaration per the Schedule to this regulation.

RF.R.5.8 The protection of unpaid contributions of an employer
Summary:
  • The regulation outlines the protection of unpaid contributions from employers to retirement funds.
  • Unpaid Contributions: If a required contribution is not deposited within the prescribed period (starting on the eighth day after the end of the month it was due), it will accrue interest at the prescribed rate until it is paid.
  • Joint and Several Liability: Employers and their directors and officers are jointly and severally liable for unpaid contributions and the accrued interest.
  • Interest Rate and Payment: The interest rate is the repurchase rate set by the Bank of Namibia plus 4%. Interest is calculated daily using compound interest and credited to the affected members' records.
What to do:
  • The Fund’s Rules need to be amended to comply with this regulation (provide for interest on late payment of contributions).
  • The administration system of the administrator of the fund needs to be adapted to be able to calculate the interest as per the regulation.
  • Funds need to communicate with their employers to ascertain that employers pay contributions within the prescribed period..
  
 
New Dividend Withholding Tax – What Employers and Staff Need to Know
 
 
The Ministry of Finance has published proposed amendments to the Income Tax Act that will introduce a 10% dividend withholding tax on dividends paid by Namibian companies for comment. This development affects all companies declaring dividends and has specific implications for staff who participate in employee shareholding schemes or receive dividends through staff trusts.

1. The essence of the new tax
  • A 10% withholding tax must be deducted from all dividends declared by resident companies, unless the shareholder qualifies for one of the exemptions in the Act.
  • The company declaring the dividend is responsible for withholding and paying the tax to the Receiver of Revenue by the 20th of the following month.
  • The liability rests with the shareholder, but the company acts as the collecting agent.
2. Exemptions
Some shareholders who are paid a dividend are exempt, including:
  • The Government (national, regional, or local);
  • Namibian resident companies;
  • Certain tax-exempt institutions (section 16(1) entities);
  • Shareholders in a registered small and medium business (turnover below N$10 million), up to N$100,000 per shareholder per year.
3. Impact on companies
Companies must now:
  • Identify their shareholders and determine whether they qualify for an exemption.
  • Withhold 10% from dividend payments to non-exempt shareholders.
  • Submit returns and remit the withheld tax to Inland Revenue.
  • Update payroll and finance systems where staff trusts or employee shareholding schemes are in place, to ensure compliance.
  Quick Facts: New Dividend Withholding Tax

Rate: 10% on all dividends paid by Namibian resident companies

Who withholds?
 The company declaring the dividend

Who pays?
 The shareholder (but the company must collect and remit it)

Exemptions:
  • Government (all levels)
  • Namibian resident companies
  • Approved tax-exempt institutions (s.16(1))
  • SME companies (turnover < N$10m) – up to N$100k per shareholder/year
 Example: Staff Trust
  • Company dividend: N$1,000,000
  • Staff Trust share (25%): N250,000
  • Less 10% withholding tax: N$25,000
  • Net to Staff Trust: N$225,000
  • This net amount is distributed to staff.
 Key Takeaways
  • Companies must withhold and pay 10% to Inland Revenue.
  • Staff trusts are generally not exempt.
  • Staff will receive slightly lower distributions than before.
  • Transparency and communication with staff are essential.

Failure to withhold and pay over the tax exposes companies to penalties and interest under the Act.

4. Impact on staff shareholding schemes
Many companies reward employees through staff trusts or similar schemes that hold shares on behalf of workers. Under the new law:
  1. The company declares dividends say N$1 million annually.
  2. A staff trust receives its share (e.g. 25% = N$250,000).
  3. Before the dividend payment, the company must withhold 10% (N$25,000) and pay it to Inland Revenue.
  4. The staff trust receives the net amount (N$225,000), which it then distributes to staff according to its trust deed.. 
For staff, this means:
  • The dividends tax is already deducted before the trust receives the funds.
  • Staff distributions from the trust are after-tax amounts and will be treated under normal income tax rules applicable to trusts and beneficiaries.
5. Key takeaways
  • Companies must prepare now to withhold 10% on dividends and file the required returns.
  • Staff trusts and other employee shareholding vehicles will not be exempt, meaning employees will see a reduction in the amounts available for distribution.
  • Transparent communication with staff will be important so they understand why their dividend share is slightly lower than before..
Conclusion

The new dividends tax represents a significant shift in Namibia’s tax landscape. While it enhances revenue collection for the State, it also places a new compliance burden on companies and reduces the net benefit to staff in employee shareholding schemes. Companies should review their structures, update systems, and clearly communicate the implications to both shareholders and employees.
 
 
 
COMPLIMENT
 
 

Compliment
from a pensioner   
Dated July 2025


 
  
“I know I can rely on you and the team to respond and provide clarity on matters where I require further understanding. The peace of mind I enjoy, knowing that I can count on all of you when it matters most, is truly invaluable..
Carol Milward””
  
  
 
Read more comments from our clients, here...

 
  
  
BENCHMARK: A NOTE FROM GÜNTER PFEIFER
 
  Benchmark Retirement Fund Celebrates 25 Years of Trust.

The Benchmark Retirement was established on January 1, 2000, and celebrates its 25th anniversary this year, marking a quarter-century of providing retirement solutions to Namibian employers and their employees, as well as pensioners and dependents of deceased members. The milestone event celebrated the fund’s growth and its significant impact on the local pension industry.

The fund was established to address the lack of suitable pension options for small employers and their employees. The founder of the fund commented on the initial vision, stating that they decided to create a solution for these employers when no one else would. This commitment has driven the fund from its humble beginnings to becoming a major player in the Namibian financial sector.

The journey was not without its challenges. The founder humorously recalled the "character-building" process of drafting complex rules for the multi-structured fund and the difficulties of integrating new technology. Despite these hurdles, the fund persevered and experienced remarkable growth, with its assets reaching N$100 million, then N$1 billion, and now surpassing N$10 billion.

The anniversary celebration emphasised that the fund’s success is not just measured in financial figures but in its dedication to people. The fund built a reputation for being efficient, trusted, and proudly Namibian by consistently offering innovative solutions and looking after its members' best interests.

The founder expressed immense pride in the fund’s culture and its staff, who have embodied the core values of consistency and sincerity. The anniversary served as an opportunity to thank the pioneers who laid the foundation, the dedicated staff, the diligent trustees, and the members who have been central to the fund’s success. The celebration concluded with a toast to the next 25 years, with the hope that the BRF will continue to lead the industry and serve as a reliable "home for members."
 
Circulars issued by the Fund		  
 
  The Benchmark Retirement Fund issued the following circular in September: 
  • 202503 – Benchmark Default Portfolio annual review 
Clients are welcome to contact us if they require a copy of any circular.
 		  
 
NEWS FROM RFS
 
RFS Welcomes New Staff
 
  We are delighted to announce that the following staff will be joining our permanent staff on 1 October 2025.

Taikeisha Kashmera Resandt
Grace Tuyoleni Shifonono

Taikeisha graduated from Dr Lemmer High School in Rehoboth in 2021 and will join our permanent staff after having served as a vacation student in 2024 and in a temporary position since April 2025. Before joining RFS, she had enrolled for studies in Anthropology and Sociology, but subsequently switched to a General Education Development course. Taikeisha is a very good communicator and listener. She enjoys interacting with people and always goes the extra mile to ensure customer satisfaction.

Grace holds a Bachelor of Accounting (Honours) degree and a Postgraduate Diploma in Business Administration from the University of Namibia, with a commendable average of over 70%. She will meaningfully strengthen the Benchmark fund accounting team with her skills and experience. Before joining RFS, Grace served as a Pension Fund Accountant at Alexander Forbes Financial Services, where she honed her skills in financial accounting, reporting, and compliance. Before Alexander Forbes, Grace worked as a finance intern at Engen Oil Namibia.

We extend a warm welcome to Taikeisha and Grace! We look forward to their contribution in helping our clients rest easy, knowing that RFS’s team of experts is attending to their retirement business. We are confident that their friendly and outgoing personalities will be a valuable addition to our team and clients, and we wish them all the best in their new position.
  
RFS Crowned Jukskei Champions
 
  RFS entered three teams that proudly participated in this year’s Jukskei Sake Liga Tournament, held in support of fundraising initiatives. The event brought together teams from across the community for a day filled with spirited competition, camaraderie, and plenty of fun.

Jukskei, one of Namibia’s traditional sports, proved once again to be an excellent way to combine teamwork with community spirit. To top it all, the Benchmark Group 3 team were crowned as champions of the Sake Liga, while Group 2 won the prize as best-dressed team. Our teams also scored high on enthusiasm, laughter, and the shared joy of contributing to a worthy cause.
 

A big thank you goes to all our colleagues who participated, as well as to those who cheered from the sidelines. By joining hands with fellow participants, we helped raise funds that will make a difference in the lives of those in need.

At RFS, we believe in giving back to the community, and events like the Jukskei Sake Liga Tournament remind us that even a friendly game can help build a stronger, more caring Namibia.		  
 
Other Staff News
 
Senior staff delegation attends the RFIN conference.

A delegation of five senior staff attended the RFIN conference held on 20 and 21 August. Read more and access their notes under News from RFIN.

F.l.t.r. Amanda Ocallaghan, Rauha Hangalo, Vincent Shimutwikeni, Sharika Skoppelitus, Carmen Diehl
 
  Leande de Bruin ties the knot.
 
  We are delighted to share the joyful news that our colleague Leande recently tied the knot with Jacobus du Toit. We heartily congratulate the newlywed couple, Leande and Kobus, and wish them a lifetime of happiness, love, and memorable moments together.
 
 
 
     
Elevate your fund experience with EPIC
 
 
Members of funds administered by RFS can now access EPIC, its member communication platform, if the trustees agree to make the platform available to members.

Members can access their benefits and investment values online from anywhere at any time.
 
Members of the Benchmark Retirement Fund take note that they have similar functionality through Benefit Counsellor.
 
We encourage our fund members to make the best use of these facilities. 
  

The RETIREMENT COMPASS
 
 
RFS Fund Administrators sponsor this newsletter as part of their social responsibility and initiatives to support the retirement fund industry. It aims to provide members of funds managed by RFS Fund Administrators and other parties in their network with retirement funding and planning-related news and insights, presented understandably.
 
The latest issue covers the following insightful articles: 
  • Stand-alone Funds vs Umbrella Fund Schemes;
  • Generational Perspectives on Traditional Pensions in Namibia;
  • Funny Retirement ‘Facts’ in Namibia.
Don’t miss out on the latest Retirement Compass (vol 2, no 2) here...
  
  
Important circulars issued by RFS
  
 
RFS issued the following new circular in August:
  • RFS 2025.08-08 Registered service providers.
Clients are welcome to contact us if they require a copy of any circular.
 
  
  
NEWS FROM NAMFISA
 
NAMFISA Industry Meeting
 
A pension fund industry meeting was held on Thursday, 18 September.

You will find:
  • the agenda here
  • the NAMFISA presentation here, and 
  • the minutes of the previous meeting of 27 March 2025,here
NAMFISA Launches New Complaints Management System

NAMFISA informed its regulated entities of the launch of an AI-enabled National Complaints Management System. This is a collaborative effort of NAMFISA, PROTO, the Bank of Namibia, and CRAN to transform consumer protection digitally.

This initiative aims to streamline regulatory complaint handling processes, enhancing efficiency and responsiveness in consumer protection. The AI-enabled National Complaints Management System (the AI Complaints System) will further establish a consistent framework for managing complaints lodged at NAMFISA.

The circular can be accessed here.

Editor’s note: For those interested, PROTO is a Canadian business that builds AI platforms for citizen engagement, complaint handling, transaction support, and fraud reporting.

Since it is said to be a National Complaints Management System, it would be wonderful if it also covered the public sector, including all regulators!
  

 		    
  
News from RFIN
 
RFIN 2025 Conference
 
 
The Retirement Funds Institute hosted a conference from 20 to 21 August.

The guest speakers covered the following topics:
  1. Leading in a changing world by Keith Coats, futurist, speaker, author and facilitator from TomorrowToday Global.
  2. Cyber Security by Tanya Höpker, head of product management at FinLink.
  3. Strengthening market conduct in Namibia’s retirement fund sector by Lovisa Indongo-Namandje, general manager of pension funds and friendly societies at NAMFISA.
  4. Navigating uncertainty by Jakobus Lacock, portfolio manager and macro strategist at Fairtree.
If you missed this conference, the notes compiled by our delegates will give you an overview of the presentations’ contents. You can access the notes at this link.

 
  
  
LEGAL SNIPPETS
 
Power of Attorney, a Vital Tool for Pensioners
Contributed by Vincent Shimutwikeni, B. Juris, LLB (honours), CGRC-BP™, Manager: Legal Support
 
 
In this article, the author explains why it is essential for pensioners to consider granting a power of attorney to a trusted individual in the event they are unable to manage their financial affairs.

Definition & Purpose
  • A Power of Attorney (POA) authorises a trusted person (agent) to act on behalf of the principal (the person granting authority).
  • It can be general (broad powers) or special (limited to specific acts).
  • Useful for managing finances, property, pensions, investments, or medical decisions.
Importance for Pensioners
  • Age-related challenges (illness, reduced mobility, cognitive decline) can make self-management difficult.
  • A POA ensures bills are paid, pensions withdrawn, and medical choices respected.
  • Prevents disputes and misuse of finances by clearly designating an agent.
Legal Framework in Namibia
  • POA can be informal (even verbal), but formalities may apply in specific contexts.
  • Example: under Section 85 of the Deeds Registries Act, POAs for property must be attested by two witnesses (over 14) or a magistrate, commissioner, or notary.
  • The agent cannot also act as a witness.
Practical Guidance for Creating a POA
  • Choose a trusted agent (often a family member or legal advisor).
  • Define the scope (general or limited to specific transactions).
  • Lodge the documents appropriately (e.g., with the Deeds Office for property, or share copies with banks, pension administrators, and attorneys).
Limitations
  • The principal must have contractual capacity when granting authority.
  • POA lapses if the principal loses their mental capacity (the court must then appoint a curator).
  • POA becomes void upon the death of the principal.
Conclusion
  • A POA is a vital safeguard for autonomy, finances, and well-being in retirement.
  • Pensioners should consider including it in their retirement planning.
  • Professional legal advice ensures the POA is properly drafted, executed, and enforceable.
Pensioners and members approaching retirement are urged to read the full article by Vincent Shimutwikeni at this this link.


 
Garnishee Orders v Maintenance Orders under Section 37A of the Pension Funds Act: A Legal and Practical Distinction
Contributed by Vincent Shimutwikeni, B. Juris, LLB (honours), CGRC-BP™, Manager: Legal Support


The article summarises the legal differences between garnishee orders and maintenance orders in Namibia, specifically concerning their effect on pension benefits. It highlights that while both are legal tools to enforce financial judgments, they are treated very differently under Section 37A of the Pension Funds Act 24 of 1956. This Act generally protects pension funds from being attached or reduced to preserve retirement savings.

Garnishee Orders

Purpose:
  • These orders are used by creditors to collect ordinary debts, such as a loan or a commercial debt.
Legal Basis:
  • They are issued under the Magistrates’ Courts Act.
Impact on Pension Funds:
  • According to Section 37A, garnishee orders cannot be enforced against a person's pension benefits, unless they meet the requirements of this section. This legal protection ensures that retirement savings remain secure from most creditors.
Maintenance Orders

Purpose:
  • These orders are for enforcing a legal obligation to support dependents (e.g., for children or a spouse).
Legal Basis:
  • They are issued under the Maintenance Act 9 of 2003.
Impact on Pension Funds:
  • Unlike garnishee orders, maintenance orders can be enforced against pension benefits. The law prioritises the fundamental right of a dependent to receive support over the protection of retirement savings.

Conclusion for Fund Trustees and Members
The distinction is crucial. Pension fund trustees must carefully determine the type of order they receive. They are legally obligated to comply with a valid maintenance order by deducting funds from a member's pension. However, they must refuse to comply with a garnishee order that seeks to attach pension benefits, unless it complies with the requirements of section 37A. This legal framework strikes a balance between protecting a person’s retirement funds and fulfilling their social responsibility to support dependents.

Read the full article by Vincent Shimutwikeni at this link.
 
  
     
SNIPPETS FOR THE PENSION FUND INDUSTRY
 
What Many Investors Don’t Know About Their Retirement Fund
 

 
Retirement funds are powerful tools for building wealth, but they come with complex rules and regulations that are often overlooked. Here are a few key areas that every investor should understand to maximise their retirement savings.

1. Retirement Funds are Highly Regulated 
A complex legal framework, including the Pension Funds Act, the Long-Term Insurance Act, and others like the Income Tax Act, governs your retirement savings. Understanding these rules is essential for making informed decisions about your money.

2. Company vs. Personal Funds
Retirement savings typically go into either an occupational fund (from your employer) or a personal Retirement Annuity (RA).

3. Your Fund has Trustees
A board of trustees oversees all registered retirement funds. They are legally obligated to act in the best interest of all members, ensuring contributions are received and investments are managed appropriately.

4. Not All Retirement Annuities are the Same
Some RAs are structured as insurance policies, while others are housed on Linked Investment Service Provider (LISP) platforms. Unit trust RAs are generally more flexible, transparent, and cost-effective, offering more control over your investments without penalties for changing contributions.

5. Tax Deductions Have a Cap
You can deduct up to 27.5% of your taxable income (or remuneration), capped at R350,000 [in Namibia only N$150,000] per year, from your tax liability. This limit applies to all your retirement funds combined.

6. Offshore Investments are Limited
Regulation 28 [in Namibia, Regulation 13] limits the amount of your retirement fund that can be invested in certain asset classes. The allowable offshore allocation has increased to 45% (as of 2022) [in Namibia, 35%, plus 5% onshore but outside the CMA], allowing for some diversification against domestic risks.

7. Accessing Your Funds is Restricted
Generally, you cannot access your retirement funds at will. With an RA, you can only retire at age 55, while other funds have their own set retirement ages. The new "two-pot" system, effective September 1, 2024, now allows limited, once-per-year access to a portion of your savings [not applicable to Namibia].

8. Retrenchment and Divorce Have Tax Implications
Any lump sums from retirement funds and severance benefits are taxed together as a single amount. The first R550,000 is tax-free as a once-in-a-lifetime benefit. In a divorce, a spouse can claim a share of the pension interest, which is calculated differently depending on the type of fund. [The legal situation in Namibia is quite different.]

9. Your Beneficiaries Don't Always Get the Final Say
Upon your death, a retirement fund death benefit is distributed by trustees under Section 37C of the Pension Funds Act. They must ensure the benefit is distributed fairly and equitably among financial dependents, regardless of who you named on your nomination form.

By understanding these complexities, you can make more empowered decisions and structure your retirement strategy for long-term financial security.

Read the full article by Hannah Myburg in Moneyweb, dated 8 September 2025, at this link.
  
 
Is return everything when choosing an investment?
  

 
While returns are the most visible aspect of investing, focusing solely on them can lead to costly mistakes. A resilient investment plan should balance four pillars:
  1. Fees - Understand what you pay (management, advisor, and administration fees) and the value you get in return.
  2. Tax – Structure investments to be tax-efficient so more of your money works for you.
  3. Risk – Align risk with your goals, time horizon, and comfort level rather than chasing maximum returns.
  4. Returns – Consistency and discipline matter more than short-term gains; staying the course usually outperforms market timing.
Conclusion:
Successful investing isn’t just about chasing the highest return but about creating a cost-effective, tax-smart, risk-appropriate strategy that delivers sustainable long-term growth.

 Read the full article by Nerina Dreyer in Moneyweb of 17 September at this link.
 
  
  
SNIPPETS OF GENERAL INTEREST
  
The Power of Appreciation
  
 
In this insightful article, the author raises several important points about maximising employee potential.
  • Traditional motivation methods: Organisations rely on salary increases, bonuses, and promotions, but these have only a short-term impact.
  • Deeper driver of performance: Long-term motivation comes from appreciation and recognition, not just material rewards.
  • Human need: Employees want to feel valued, respected, and acknowledged, fulfilling a psychological desire for significance and belonging.
  • Difference between rewards and appreciation: 
    • Rewards are transactional, limited, occasional, and often for a select few.
    • Appreciation is consistent, inclusive, and can be offered daily at no cost.
  • Impact of appreciation:
    • Creates intrinsic motivation (employees give their best because they feel valued).
    • Increases productivity, loyalty, and retention.
    • Encourages ownership, innovation, and resilience.
    • Builds trust and team cohesion.Enhances the organisation’s reputation and attractiveness to talent.
  • Inclusivity of recognition: Appreciation can extend to all roles, not just executives or high achievers, fostering unity and shared purpose.
  • Return on appreciation: It costs nothing but delivers immense value in morale, engagement, and long-term performance.
  • Core lesson: Rewards fill pockets, but appreciation fills hearts. It is sustainable, and workplace performance is driven by authentic recognition.
Read the article by Junias Erasmus in The Brief of 29 August at this link.
 
  
 
The Psychological Shift No one Talks About When You Retire
 
 
In this article, the author addresses the key psychological shifts that can occur during retirement. He speaks with the authority of two decades of experience as a financial coach.

1. Loss of Identity and Purpose:
Many people define themselves by their careers. Upon retirement, they may experience a loss of their professional title and a sense of relevance, which can lead to an identity crisis. The article suggests that retirees must actively redefine their purpose beyond work.

2. Shift from Structure to Freedom:
While freedom from work can be appealing, the lack of a daily routine can lead to restlessness and a feeling of drifting. The article emphasises the importance of building new routines and staying actively engaged in new activities.

3. The Fear of Running Out of Money: Even with a solid financial plan, the transition from accumulating wealth to withdrawing from it can cause emotional anxiety. The article emphasises that a successful retirement plan is not just about financial returns, but also about achieving peace of mind.

4. Transition from Responsibility to Legacy:
Retirement is an opportunity to think beyond personal responsibilities and focus on legacy. This can involve mentoring, supporting a cause, or intentionally creating generational wealth.

5. Grief and Emotional Impact:
The article notes that retirement can feel like grief, as it marks the end of a significant chapter of life. Acknowledging and preparing for this emotional shift is crucial for a rewarding retirement.

Read the full article by Hardi Swart in Moneyweb of 5 September at this link.
 
  
AND FINALLY...
  
Wise words from wise men
  
  ""Two things fill the mind with ever new and increasing admiration and awe… the starry heavens above me and the moral law within me" ~ Immanuel Kant (1724 - 1804)  
 
  
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Disclaimer
Whilst we have taken all reasonable measures to ensure that the results reflected herein are correct, Benchmark Retirement Fund and RFS Fund Administrators (Pty) Ltd do not accept any liability for the accuracy of the information and no decision should be taken on the basis of the information contained herein before confirming the detail with the relevant portfolio manager.		  
  
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