Fee Drag: The Silent Destroyer of Retirement Outcomes

Growth of R1,000,000 over 30 years at 8% gross return — impact of annual fee levels

At 1% annual fee, a member loses R2.5 million over 30 years compared to the gross return. At 2% fees, the loss exceeds R4.3 million — nearly half the potential terminal value destroyed by fees alone.

"Fee drag is like high cholesterol. You cannot feel it. It does not announce itself. But over 20–30 years, it silently erodes your members' retirement outcomes. Every basis point matters."