The number of people that are feeling burdened and stressed from the Steinhoff scandal is immense due to the possibility of negative impacts on their pension contribution funds. Chris Chikumba, the financial advisor and also the managing director at the Kingdom Wealth Services has broken down the risks. Chikumba’s interview with the Huffington Post SA followed up with the international retailer, Steinhoff on their accounting irregularities that lead up to the scandal, which as reportedly resulted in a harsh effect on the government employee pension funds and other investments involved.
Chikumba mentioned that employers are advised to have their employees importance in mind by searching for a retirement fund that has the best returns. He warned that there is nothing that meant to be 100 percent when it comes to investments as it is all about taking risks. Following up, Chikumba continued by stating that according to financial logic, your pension contributions should be in a safe and secured fund, until an event such as the Steinhoff scandal emerges, that is when the situation is beyond the control as a pension fund contributor. It is also an issue that the asset managers cannot even understand, which caused the investments to take a huge collapse overnight.
He noted that trusting that a company has invested your pension contribution in an appropriate manner, but you also hope that nothing similar like Steinhoff would happen to the company that you have entrusted your funds with. Chikumba further advised that employees to know what the company has invested their company retirement funds for. Furthermore, ever since the steinhoff news began trending regarding the scandal, employees must take caution and remember the name of the company retirement fund. Understand the benefits that you are supposed to receive from them. According to the law, your deposited funds should at least give you information about how they work and what benefits will follow.