Saving for retirement has never been as serious as it is today. The world has been faced with many challenges, and a pandemic like the Coronavirus can create more harm to anyone’s finances, including those that are retired. Investing in retirement has, therefore, become necessary to ensure that one can cope in difficult situations. 

Businesses are often urged to encourage their employees to take out retirement plans. In fact, most businesses now make it mandatory for their employees to take out a retirement plan. However, taking out a retirement plan doesn’t meet each individual’s future financial needs. Momentum, however, tries to provide for almost all employees’ future financial needs with its Funds At Work Umbrella Fund offering. 

Funds at Work Umbrella Fund is there to take care of employees’ future financial goals. The fund doesn’t only look at the future goals but also at the current goals and uses an outcome-based investing philosophy. The Funds At Work Umbrella Fund is flexible, which means it can protect its members if life-changing events happen.

What is the Momentum Funds at Work Umbrella Fund? 

The Umbrella Fund is a retirement fund from Momentum that takes care of employees’ current and future retirement financial goals. The fund uses an outcome-based investing philosophy that mainly adheres to the needs of the members of the fund rather than only following a certain benchmark. 

Momentum Funds at Work Umbrella Fund is flexible and ensures that, should there be a need for an early withdrawal, such a withdrawal can be made should a member suffer a life-changing condition. Moreover, the fund not only collects and makes money for members but also guides and motivates members to make better life choices. 

Momentum Funds At Work Umbrella Fund Product Options

Funds At Work Umbrella Fund has investments in a number of financial instruments. The financial instruments that the fund invests in will be determined by the product option that is chosen. There are currently three product options that are available to businesses. These product options include Entrepreneur, Provider, and Founder which will all be explained briefly below. 

Entrepreneur product option

The Entrepreneur product option is a niche product from Momentum available for Funds At Work Umbrella Fund. The option is available to employers and employees at large. The product allows all members to have distinct and individual needs, making the product flexible to individual needs. 

Provider product option

The provider product option is available to both employers and employees and offers a higher level of flexibility than the entrepreneur product option. This option is best suited for employers and employees with more complex needs or those that need a great degree of flexibility in retirement investment. 

Founder product option

The Founder product option is an investment option for the Funds At Work Umbrella Fund and offers limited investment flexibility compared to the Entrepreneur or Provider options. This option is meant to keep costs low and provide basic benefits. 

What are the savings and investment components of the Funds at Work Umbrella Fund? 

Funds At Work Umbrella Fund has different components for investment purposes. The fund is composed of four important factors that make the fund run like a well-oiled machine. The components include choices, preservation of funds, annuities, and investment portfolios. 

Choice as a component is important, and it doesn’t diminish the importance of other components of the fund. Choices involve investment choices. These include employer-specific choice, member choice, auto contribution increase choice, and contribution flexibility choice. 

Preservation of funds has to do with the preservation of funds, that is, ensuring that members’ contributions are saved and up to date. On the other hand, annuities are annuity choices that members or employers have to make. Annuities include living annuities and annuities with profit. 

An investment portfolio as a component is more related to the type of investor a member is. It involves a member’s risk appetite, future expectations, current expectations, and more. 

How to Invest in Momentum’s Funds at Work Umbrella Fund? 

Funds at Work Umbrella Funds come with investment portfolios to choose from. As such, making a cautious investment decision by employers is the only thing to do. The most important part of investing in the fund is that the products available vary, therefore, they allow for choice. 

Before making any savings or investment decision, the choice has to be made. You or your employer must decide whether to invest with the Entrepreneur, Provider, or Founder product.Furthermore, the party making the choice will need to decide on which bracket of yearly income the employee falls under, especially when determining the product option. 

To start investing in the fund, you need to be an employer, and investments are subject to an employee’s salary range. The product option chosen based on salary will influence the investment portfolio that employee funds will be invested in. 

Does Momentum’s Multiply benefit apply to Funds At Work Umbrella Fund? 

Yes, Momentum’s Multiply benefit applies to the Funds At Work Umbrella Fund. With the Multiply program, the fund members get incentives whenever they make the right choices to live a better life and a healthier life. 

Note that Multiply that is applicable to Funds At Work Umbrella Fund is for corporates. It rewards employers for taking care of their employees’ physical and financial well-being as well as creating a safe workplace. As an employer, you can earn up to R600 per employee annually. 

Conclusion 

The Momentum Funds at Work Umbrella Fund is a rewarding retirement plan that employers need to understand. This product also creates opportunities for members in a number of ways and encourages employees to live a healthy lifestyle.-