About 40 percent of all retirement funds, including stand-alone funds sponsored by employers, umbrella funds and retirement annuities, but with the exception of Government Employees Pension Fund, have taken advantage of reducing or suspending the fund contributions as a result of the Covid-19 lockdown.
In terms of research undertaken by Sanlam, this means that retirement fund members can expect a reduction in benefits of between one and three percent at retirement. The Sanlam Benchmark Survey says the outcome for each member will depend on how long they have saved and their current age until retirement.
The younger you are the worse off you are likely to be because you lose the advantages of compounding returns. The only way to counteract this is to make more contributions in future.