It is important to speak to an accredited financial planner before you make any big decisions about your retirement savings.

You have two options:

• Speak to a benefit counsellor: If you have any questions about your options in the fund or your benefits, you can contact the benefits counsellors.  This service is FREE.
• Speak to a financial advisor: I need advice to help me to save enough for retirement.

See the contact details for both options below.

Benefits Counselling - I have questions about my benefits

What the service entails
The fund offers the service of equipping members with the relevant information they require at each step of their membership journey. New members to the fund will be informed of the fund structure, how it operates and the choices available to them. Similarly, members who withdraw or retire from the fund will be informed of their payment options and the respective implications of such options. Members will also have the opportunity to ask any questions to improve their understanding.

What to expect
A retirement benefit counsellor or financial advisor from Alexander Forbes will contact members at each of the above events. To enable this service, the personal information as defined in the privacy statement of this document, will be collected by Engen and provided to Alexander Forbes. The information will be used for the sole purpose of retirement benefit counselling.

My Money Matters Centre
Members also have the option to contact the My Money Matters call centre at any time during their membership to the Engen Pension Fund should they have any questions relating to their fund:
A dedicated team is available by phone or email:

Telephone: 0860 000 381    OR    
Email: mymoneymatters@alexforbes.com

Cost - FREE
The enhanced retirement benefit counselling is a free service offering to members of the Engen Pension Fund. It is however important to note that it is not financial advice but rather helps you to be more informed and better prepared to receive advice if you choose to. The advice may attract a fee by your financial advisor that you wish to appoint.

Financial planning - I need advice to help me to save enough for retirement

The fund has access to qualified financial planners who can help you with your retirement planning. If you would like an appointment with a financial advisor, please contact us on the details below. You are also free to use your own financial advisor.

A dedicated team is available by phone or email:
My Money Matters Centre:
Telephone: 0860 000 381 or
Email: mymoneymatters@alexforbes.com

Click here to read a helpful, short article about Counselling vs Advice.

Questions to ask your advisor

Q: Are you independent or tied to an insurer?
A: An advisor tied to a particular insurer will only be able to sell that company’s products, while an independent financial advisor can advise on and sell products from any provider across the market. This allows you to compare a variety of insurance products and decide on the one that best suits your needs.

Q: Whose financial products do you sell?
A: You must ask an adviser whether they represent a wide range of assurance companies’ products and a variety of investment houses and which ones and why.
A financial institution such as a life company or an advisory practice. If the advisor is employed by an advisory practice with its own licence, you still need to check whether the practice is owned by a product house. This information will help you work out whether you are getting advice from a tied or product supplier agent, who only recommends products from one institution. If your advisor is employed by a practice licensed as a separate financial services provider but the practice is owned by a product house, you need to ask about incentives offered to your advisor.

Q: Are you from a financial institution such as a life company or an advisory practice?
A: If the advisor is employed by an advisory practice with its own licence, you still need to check whether the practice is owned by a product house. This information will help you work out whether you are getting advice from a tied or product supplier agent, who only recommends products from one institution. If your advisor is employed by a practice licensed as a separate financial services provider but the practice is owned by a product house, you need to ask about incentives offered to your advisor.

Q: Which product or product categories are you authorised to sell or advise on?
A: Advisors are authorised to sell different types of products based on very stringent experience and qualification requirements.   If you are investing your pension, it is important to ensure that the advisor is licenced to advise on investment and pension benefits. If you need advice on your Risk Cover (e.g. death and disability cover), the advisor needs to be licensed for long-term insurance and the same applies for medical aid.
 
Q: How much will I pay?
A: When choosing a financial advisor, it helps to understand how your advisor gets paid, because those who secure commissions may apply a different methodology to advisors who work on a fee basis.

Financial advisors get paid in one of the following ways:

Commission only: Some advisors only receive commissions from product providers for providing financial services and selling products, such as investments, insurance products and healthcare funding products.

Commission and fees: Commission and fee advisors may charge you a fee for developing a financial plan for you, and then receive a commission when they sell you insurance and investment products recommended in your financial plan.

Fee-only: Fee-only financial advisors usually provide advice or ongoing management of your financial plan. You may find that you need regular advice from your advisor for your business dealings, or you may have a complex financial portfolio that needs regular input but does not necessarily involve the sale of a product which earns the advisor any commission. However, there is enormous value in your advisor’s time and advice given, and in these scenarios, a fee-based system may work best.

Discuss the benefits and disadvantages of all payment methods with your advisor and establish upfront the basis upon which you will work with your advisor.
 
Q: What qualifications do you have?  
A: Ask to see proof of your financial advisor’s credentials. The insurance industry has formalised qualifications for financial advisors, and you should ensure that your advisor is Financial Advisory and Intermediary Services (FAIS)-licensed. If an advisor is working under supervision it means that they still need to qualify by passing their regulatory exams and will be working under the guidance of a qualified individual. FAIS ensures that there is significantly less room for error and malpractice. As a consumer, you are now better protected as emphasis has been placed on putting client interests first and ensuring the quality of service and advice.
 
Q: How do you determine my specific needs?
A: A good financial advisor will look at your needs and potential risks over the long term — assessing everything from your future goals to death cover, critical illness and disability, income protection, retirement, savings, investing and healthcare funding. They should also look at how your last will and testament interact with your financial plan. 

And remember, just like there is no single product provider that can offer all of the necessary covers in one neat, well-organised and appropriately scoped package, your advisor may also call on specialists to look at specific areas of your financial plan. For example, he may call in a specialist in trusts, or a legal expert to look at your will, or a tax expert to look at the tax implications of your estate. A good advisor will always support the need to bring in specialists, especially with complex portfolios, to ensure that all your bases are covered, and all consequences considered.

Q: How will you communicate with me and how often?
A: Staying in touch with your financial advisor is critical to managing your portfolio and developing their knowledge and understanding of your needs. The regularity with which you meet will depend on your goals. These should be agreed upon with your broker at the outset. If your objective is simply to implement a simple risk insurance solution, such as bond cover and a long-term retirement annuity to supplement your company pension scheme, then an annual update may be adequate.

If you are more goal-driven in terms of your finances — perhaps with aspirations to retire young and wealthy or to leave your job within five years to start your own business — your needs will be very different.

It is also important to consider “trigger events” that may necessitate action or advice; such as retrenchment, divorce, or additions to the family. Any change in circumstance can alter your risk and should be evaluated as part of your financial plan and strategy.
 
Q: What claims service do you offer, and what has your claims experience been with different providers?
A: Look for a financial advisor who understands the importance of issues such as service delivery and claims settlement — purchasing an insurance policy should be about more than finding the cheapest rates. Your advisor has a moral obligation to act in your best interests and manage all of your claims on your behalf, ensuring that the process runs smoothly. Find out about their experience with difficult claims or cover disputes and look at any claims information they may have about different insurers. It’s important to know that the insurer you select has a solid track record when it comes to claims settlement and an ethos of acting in their client’s best interests. 
 
Q: May I contact some of your existing clients for a reference?
A: Word of mouth is the best way of establishing your advisor’s or insurance broker's reputation for service. It’s also worth looking at the Financial Planning Institute (FPI)’s website (http://www.fpi.co.za/) for background information and to establish whether your advisor is a member of the FPI.

The role of the financial advisor has become increasingly important as the global economy undergoes fundamental shifts. Now, more than ever, it is vital to know that the person you entrust with your financial future has your best interests at heart.