By: 10X Investments
#STOPDAYLIGHTROBBERY: Retirement industry’s exorbitant fees in the spotlight again
The latest video in 10X Investments’ #StopDaylightRobbery campaign, which aims to drive home the message that the investment industry has been taking the public for a ride, got off to a roaring start at the weekend with hundreds of thousands of views.
Watch the latest video here.
It aims to show that many South African retirement savers are not going to get what they expect when they come to retirement because the industry charges very high fees for products, many of which underperform. In fact, Treasury figures show that only 6% of South Africans are on track for a decent retirement.
According to Steven Nathan, CEO of 10X Investments, most South African retirement savers are being sold policies that serve the seller much better than the saver.
10X Investments, a disruptive asset manager with more than R8 billion in assets under management, has added some extra horsepower to this leg of the campaign in the form of a second local comedian, Siv Ngesi, in the video made by ad agency M&C Saatchi Abel Cape Town. Siv joins Nik Rabinowitz, star of two earlier campaigns, in a Candid Camera-style prank at a car rental lot at Cape Town International Airport.
Nik plays the part of a car hire employee who takes clients to cars they have rented and explains a slightly unusual “carpooling situation”. He tells them that due to a high demand for vehicles, not only are they not getting the exact model they booked, but they will also need to share the car with another client. Ultimately, they are getting a lot less than they paid for.
He introduces Mr Ngesi, with whom they will be sharing the car. Siv helpfully makes suggestions such as, “We could create a WhatsApp group.”
“South Africans like a good laugh almost as much as they like to see corruption exposed, but you are much more likely to get their attention with humour than with reports of bad news,” says Nathan. “That is why we chose humour to highlight what is really a very serious matter.”
The car hire gag is played on a variety of people, all shapes, sizes and colours, mostly South African, but with a few foreign visitors thrown into the mix.
Much bewilderment follows the delivery of the news that they will not be getting full use of a rental car as promised, but rather a share of one. “Why would I be happy with that?” asks an unsuspecting customer.
This is the very question 10X is hoping people will start asking about the fees they are paying on their retirement savings.
“If you ask people what they are paying in fees on their retirement products many won’t have a clue,” adds Nathan. “That doesn’t mean that they don’t care, but rather that they are too trusting of the industry.”
The #StopDaylightRobbery car hire video follows on from two earlier videos starring Nik Rabinowitz, each of which garnered more than a million views.
Early responses suggest the third video will be the most popular of the three. This new prank might double the hilarious “horsepower” by adding Siv, but it makes the same point: If you don’t get what you pay for, why aren’t you doing something about it?
Paying excessive fees on your investments adds up over an investing lifetime and could cost you up to 40% of your retirement savings.
It’s time to hit the brakes!
“We hope this video will open the public’s eyes to the fact that so many are being taken for a ride by the big names in the retirement industry,” concludes Nathan.