Nine in ten South Africans can’t afford to retire

Cage Rattler said:
Why does having more than "three-quarters of their final pensionable salary" mean you can retire?
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Think it's if retirement contributions fall away, similar salary for lifestyle.

I'd argue that your costs probably decrease in retirement, though they might increase more now with medical aid inflation...
 
Bloomberg said:
Nine in ten South Africans can’t afford to retire

Just 10% of members of retirement funds run by South Africa’s biggest standalone administrator are on track to replace three-quarters of their final pensionable salary when they stop working.
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Headline is highly misleading.

This is just clients of ONE single administrator.

Add in people who don't have provident or pension fund savings and then give us the stats.
 
It's all relevant.

Make as much as you can and invest it wisely.

Some folks can retire on R30-40k pm; some need R60-80k. Some maybe more. And some even less.
Easier said than done. But the sooner you start saving for retirement, the better. It's never too late.

From this chair I am sitting in, it's easy for me to speak. But I know the sooner, the better.

I am too fscking shiit scared to call it a day and say I am retired, and this is what I have to live from for the rest of my life.
 
Johnatan56 said:
Think it's if retirement contributions fall away, similar salary for lifestyle.

I'd argue that your costs probably decrease in retirement, though they might increase more now with medical aid inflation...
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Given who is running the country costs of living are increasing year on year, back in the 90's a 2 million Rand pot was considered a good pension by most people, today that needs to be in the 7.5 to 9 million range depending on the annual withdrawal rate.
 
Bad Ballie said:
Given who is running the country costs of living are increasing year on year, back in the 90's a 2 million Rand pot was considered a good pension by most people, today that needs to be in the 7.5 to 9 million range depending on the annual withdrawal rate.
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I would assume it's considered a good pension as R2m in 1999 -> ~R8m in 2026.
The main issue has been that salary increases have been below inflation for near two decades, if you have 4-6% inflation but getting 2-4% increases, then you keep losing quite a bit.

Here in Austria, up until 2021, inflation was around 1-2%, so it took way longer to start having that same feeling, and the last 4 years inflation was like 7-9% for two years, now back to 3%, but salaries didn't really keep up, and you notice. This has a huge knock-on effect on pensions as you don't increase the amount based on inflation, you increase it based on your raise (or decrease if can't afford anymore).
 
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