How much money do you need to retire comfortably in South Africa?

Van der Merwe says the general rule is that you should consistently save between 15 percent and 20 percent of your monthly salary between the ages of 20 and 60, to retire comfortably. An increasing number of retirement funds offer their employees variable contribution rates, from 5 to 20 percent of their annual salary.

Given the low national savings rate and slow market growth locally and internationally, it should come as no surprise that National Treasury calculates that only about six percent of South Africans are on track to retire comfortably. It is crucial to start saving towards your retirement as early as possible.
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Retirement planning is a multistep process that evolves over time.

Planning for retirement starts with thinking about your retirement goals and how long you have to meet them. Then you need to look at the types of retirement accounts that can help you raise the money to fund your future.

As you save that money, you have to invest it to enable it to grow. The surprise last part is taxes: If you’ve received tax deductions over the years for the money you’ve contributed to your retirement accounts, a significant tax bill awaits when you start withdrawing those savings.
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