Liberty says draft default regulations are a step forward

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"The actual operational implementation of the regulations was extensively debated following the first draft, and indicates a further shift towards a more principles-based approach, which is less restrictive and allows more freedom in the application of the regulations," Liberty says in a statement.

Some of the main changes reflected in the latest draft include:

• Allowance of smoothing, guarantees and performance fees

• Relaxation on the extent to which member characteristics are taken into account for investments

• A more practical approach to preservation

• Opting into a default annuity, rather than having to opting out of the default

"The revised set of defaults is a move in the right direction, and we will continue to engage with industry and the National Treasury to improve retirement outcomes for members," says Liberty.