calculator
Retirement Calculator
Estimates what your retirement savings could grow to, the income they might give, and the gap to what you need.
About R2 232 148 at 65 (today's rands)
That could pay about R8 371 a month (4.5% drawdown), roughly 42% of what you want. Estimates only; an FSCA-authorised financial planner can model your real position.
Want help interpreting this? Talk to a person
What you will need
- Current age (years)
- Retirement savings so far (all funds) (R)
- Monthly contribution (you plus employer) (R)
- Retirement age (years)
- Current gross monthly income (R)
- Income needed in retirement, % of current income (%): 75% is a common planning guide.
- Investment return above inflation per year (%)
- Contribution increase above inflation per year (%)
- Income drawn per year in retirement, % of savings (%): Living annuities allow 2.5% to 17.5% a year; drawing too much risks running out.
How it works
All in today's rands (real terms). years = retire_age - age; r = return_real/100/12; n = years*12. fv = current_savings*(1+r)^n + sum over months of contribution_m*(1+r)^(n-m), where contribution grows by contribution_escalation_real each 12 months. monthly_income_est = fv * drawdown_rate/100 / 12. income_needed = income_now * replacement_ratio/100. gap = income_needed - monthly_income_est. If gap > 0: extra_monthly_needed = (income_needed*12/(drawdown_rate/100) - fv) * r / ((1+r)^n - 1). Two-pot note: from 1 September 2024 new contributions are split with one third to a savings pot (limited withdrawals, taxed) and two thirds to a retirement pot (preserved until retirement). Every withdrawal from the savings pot lowers fv. Show at 55+: 'Speak to an FSCA-authorised financial planner before retiring or cashing out.'
What you get
- Projected savings at retirement (today's money)
- Estimated monthly income from savings
- Income you may need
- Monthly shortfall (or surplus)
- Extra to save each month to close the gap
What it means
- On these assumptions you are on track; review every year.
- You have a gap that small increases now can close.
- There is a large gap; saving more, retiring later, clearing debt and speaking to a financial planner all help.
Next step: Want help interpreting this? Speak to an FSCA-authorised financial planner.
Runs on the device. Nothing is saved unless the member chooses.