How much money you need to retire comfortably in South Africa, according to experts

[BusinessTech]

How much money you need to retire comfortably in South Africa, according to experts

The 2021 edition of the 10X Retirement Reality Report points to a deteriorating pension outlook for South Africans.

 

[Thor]

R10 million plus.

In other words, majority of us won't be able to retire.

 

[Thor]

PS... You can't use the 4% rule in South Africa.

It was created in the US where inflation is near none existent.

SA inflation is >8%

No StatsSA's figure is not correct.

 

[MaisonP]

..you need R10.8 million saved at retirement to give you R432,000 a year whoa

 

[chrisc]

You need the same amount of income when retired as when you were working

Sure you don't have to put kids through university, but might want to go on cruises and see some of the world

In fact, apart from enough of an income, you must have decent medical insurance as well

I have seen friends financially crippled from paying R8m - R10m to hospitals and doctors who insist that it is your duty to keep a loved one alive come what may

You also have to make sure your income keeps pace with real inflation, not the pie in the sky figures trotted out by SA Stats. These are pure fiction

You should be able to put away at least 15% of your retirement income for large expenses - new cars, house repairs, etc

Its not difficult if you start early enough. Compound interest is your best friend

 

[3WA]

..you need R10.8 million saved at retirement to give you R432,000 a year whoa

These people are planning for you to live for 30 years post-retirement. I think we should rather plan for 10 really good years, and then if still alive after that, figure out a plan.

 

[Pineapple Smurf]

Sweet Jesus I am a very long way off
My provident fund will pay out 1.1mill in todays money value
I should have studied harder and passed Matric

 

[maumau]

Who's going to retire in ZA if they've got R10 million?

They'd be very short sighted to leave their money in this country.

 

[xrapidx]

I've stopped increasing my retirement savings and started focusing on investing to make money now.

 

[3WA]

Sweet Jesus I am a very long way off
My provident fund will pay out 1.1mill in todays money value
I should have studied harder and passed Matric

Use that R1.1m to start a low-barrier-to-entry business. Like pimping crack 'hos.

 

[Vrotappel]

I lost 4 colleagues in the last two months. 3 from covid and another from heart failure. At this point leaving at 55 and not dying whilst still working seems like a good idea to me.

 

[Scooby_Doo]

So if you running on 100k per month you will need 30 million

My fav is to remind my 40-year-old friends that they are in retirement zone in the 20 years. Hey bud, have you started saving?

 

[krycor]

Whenever I look at retirement stuff I often think this is why many business owners, entrepreneurs etc who have a successful monopoly go all in and profiteer like the world is coming to an end because they know they need to catch up(success doesn’t happen over night for most).

Just thinking about it.. if you aren’t fortunate to get a decent start of career till mid or late 30s, you basically have a handful options.

Seems the popular way is to hope to get to the top of company and make everyone pay, alternatively become a politician or gov industry related specialist and starve off retirement for a few years and well others go the corruption and fraud route.

As much as I don’t condone it, looking at it you can easily see why people do what they do.. and things are getting tougher so the risk evaluation is gonna swing harder for people to risk it all.

 

[ronz91]

Yoh some people are planning a bonanza retirement

 

[Moosedrool]

Depends on how you think this economy is going to look for your retirement days.

So a lot more than people think IMO.

 

[Bigjay84]

Think the answer is enough money so you can emigrant

 

[backstreetboy]

Not much. You'll eat much less, buy clothes much less, drive around much less etc. etc.

 

[Scooby_Doo]

Not much. You'll eat much less, buy clothes much less, drive around much less etc. etc.

This is basically WFH life.

 

[ToxicBunny]

Not much. You'll eat much less, buy clothes much less, drive around much less etc. etc.

Yes you need less than when you're "working", because most of your big debts should be settled.... but I think you may need to re-evaluate that you drive around less and eat less etc.

Half the point of being retired is to get to do all the things you couldn't do when you worked for the man.
As an eg, my parents drive around way more than when they were working, and they also eat more because they now have the time to actually make decent meals 3 times a day.