This is a Pension Funds Act directive that aims to ensure your retirement funds are adequately diversified and not invested in excessively risky products. To be Regulation 28 compliant, retirement annuity (RA) or pension fund providers must invest a client’s retirement savings across different asset classes: equities, foreign assets, property and cash up to the maximum allowable amount.
You can find out more detail about this regulation in these posts:
The 2-pot system (and more Reg28 updates)
Updates to Reg28: The 2022 edition
Retire: Understanding regulation 28
Retire: RA, pension or provident fund?