Your Retirement

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All of us dream of the day we can retire from the daily grind. Unfortunately, according to various sources, including the World Bank and FNB, fewer than 10% of South Africans are saving up enough to make their retirement dreams a reality.

How much is enough?

So how much do you need to save to fall within the 10% of South Africans who will be able to retire comfortably? The general rule of thumb in financial planning is that you’ll need 75% of your income at the time of your retirement, based on the assumption that you would have already paid off your home loan and your debt by the time you retire. However, many financial advisers are now advising clients to work towards 90% of their income, as the cost of medical expenses tends to increase significantly after retirement. While every person’s retirement saving requirements are unique, here is a general guideline of how much you need to have saved through your working life.


Number of years of working Amount saved up
5 1 years’ salary
10 2 years’  salary
20 5 years’ salary
30 10 years’  salary
40 17 years’ salary

How to save enough for retirement

seem steep, it is possible to save enough for your retirement.
The financial industry’s suggested rate of savings is 15% of your gross income (before tax and other deductions) over 40 years – from the age of 25 to 65.
It pays to start saving as early as possible, but even if you have not saved anything at all, it’s never too late to start. However, to achieve your retirement goal, you must plan for the long term and be financially disciplined.

Catching up on your retirement milestones

  • a long-term retirement savings plan. Speak to a qualified financial advisor who can do a full needs analysis of your financial affairs and construct a retirement plan tailored to you.
  • Regularly review your retirement plan and your savings progress. If you have delayed saving for retirement, you may need to be more aggressive in how you invest your savings to meet your goals. Regularly review your progress and adjust your plan as circumstances change.
  • Never cash out your retirement savings! Always reinvest your retirement savings intelligently after getting expert financial advice.
  • Save assertively. Even if you have a company pension fund, aim to save an additional amount every month. Ruthlessly cut your expenses and start immediately for the best results.

Your retirement dreams can be realised. The key is to start immediately! Create a retirement plan with the help of a financial advisor and keep reviewing and updating your plan to ensure the comfortable, financially-secure retirement you deserve.