Retirement security is about far more than investment performance. While generating strong long-term returns remains fundamental, achieving meaningful retirement outcomes requires a holistic approach that considers members' financial wellbeing throughout their working lives and into retirement. 

These were among the key messages shared by EPPF Chief Investment Officer, Sonja Saunderson, at the 2026 Sanlam Benchmark Survey launch, where she contributed to industry discussions on the evolving role of retirement funds in delivering long-term value for members.

As one of South Africa's largest defined benefit retirement funds, managing approximately R250 billion in assets, EPPF believes that retirement funds have a responsibility to look beyond investment markets and consider the broader factors that influence members' financial security.

Member outcomes must remain the measure of success

The latest Sanlam Benchmark Survey highlighted several challenges facing South African retirement fund members. While investment performance remains important, many retirees continue to face financial pressures after leaving the workforce.

The research indicates that many retirees continue to carry debt into retirement, many who withdraw lump sums deplete these savings within a relatively short period, and a significant proportion are forced to adjust their lifestyles to meet ongoing financial commitments. These findings reinforce the importance of designing retirement solutions that support members throughout their financial journeys rather than focusing solely on retirement itself.

Representing EPPF during the discussion, Chief Investment Officer Sonja Saunderson emphasised that retirement funds are increasingly expected to evolve beyond traditional product administration to create member-centred ecosystems that improve long-term financial outcomes. This means encouraging adequate retirement savings, promoting preservation where possible, supporting informed financial decision-making and enabling members to access appropriate guidance throughout their careers.

Investing with a long-term perspective

For EPPF, responsible investing extends beyond generating returns. As a long-term institutional investor, the Fund continuously monitors economic, environmental and social developments that have the potential to affect members' retirement outcomes.

Economic growth, energy security, infrastructure development, inflation, geopolitical developments and employment all influence investment markets and ultimately impact retirement savings.

These systemic risks require thoughtful investment strategies that balance growth opportunities with prudent risk management and long-term liabilities.

EPPF's sustainability framework is built on three interconnected pillars:

• Economic parity
• Environmental regeneration
• Social justice

Together, these pillars guide investment decision-making while supporting the Fund's responsibility as a prudent, long-term asset owner.

Building resilient portfolios for changing markets

Investment markets continue to evolve rapidly, creating both opportunities and new risks for retirement funds.

Increasing market concentration, geopolitical uncertainty, climate-related risks and changing global capital markets require diversified investment strategies that remain resilient across different market conditions.

To strengthen long-term resilience, EPPF continues to refine its strategic asset allocation, including measured exposure to alternative investments such as private equity, private credit, infrastructure and real assets. These allocations are carefully managed within the Fund's risk, liquidity and governance frameworks to support sustainable long-term returns.

The Fund also believes that infrastructure investment should always be driven by sound investment principles. Projects should offer appropriate risk-adjusted returns, strong governance and long-term value for members while contributing positively to South Africa's economic development.

Sustainability is integral to investment decision-making

At EPPF, sustainability is not viewed as a separate investment objective but as an essential component of financial risk management.

Climate change, resource constraints and broader environmental challenges increasingly influence investment outcomes and portfolio resilience. As a result, sustainability considerations are integrated throughout the investment process.

The Fund recognises that South Africa's transition to a lower-carbon economy must be practical, inclusive and balanced. A credible transition should consider the country's energy needs, employment realities, investment opportunities and economic development while supporting long-term environmental objectives.

By integrating sustainability into investment decisions, EPPF continues to strengthen its ability to protect members' long-term financial interests.

Caring Beyond Tomorrow

The retirement landscape continues to evolve, requiring retirement funds to balance investment excellence with responsible governance, sustainability and member-centred decision-making.

For EPPF, success is measured not only by investment performance, but by the Fund's ability to help members achieve sustainable financial security throughout their retirement journey.

By remaining focused on prudent investment management, responsible stewardship and long-term member outcomes, EPPF continues to deliver on its commitment to Caring Beyond Tomorrow.

Acknowledgement

This article was inspired by insights shared during the 2026 Sanlam Benchmark Survey launch. EPPF acknowledges FAnews for its coverage of the discussion in the article, A Mega Fund View on Retirement Fund Challenges, which featured commentary from EPPF Chief Investment Officer, Sonja Saunderson, alongside broader industry perspectives.