Pension on 55?

[geezer]

Earlier this afternoon I had a look at my current pension fund growth. The growth for the last tax year (March 2011 - Feb 2012), on average was about R30000 per month. If it continues to grow like this, I should be able to go on pension at 55, which is in about 6 years time!

 

[KleinBoontjie]

My father also thought he was well away when he took pension on 55. He was living a good life for the first 10 years after pension. He's not one who spend money. But now, age 77, he is barely keeping head above water. I recon he will move in with me in the next few years, just to save some money. Inflasion is a bitch!!! Just make sure your montly "Sallary" grows enough to still cover you if you live to become 100. Thats another 51 years of inflasion and petrol hikes (if there still is petrol then)

 

[Kgabogk]

if he takes pension at 55,its only 45 years left to reach 100

 

[Chevron]

if he takes pension at 55,its only 45 years left to reach 100

but 51 years from now.

 

[geezer]

By the time I am 55, I would have been with the same company for 35 years. If I keep my pension with the company, I am guaranteed an income as long as I live, even if I live long enough to receive more than I have contributed. The monthly pension amount will also be subject to a yearly increase, coupled to inflation. If I pass away, and my wife still lives, she will continue to get 65% of what my pension was at the time of my death, which she will receive untill she also passes away. According to my benefits of employment, me and my wife will also continue to be subsidised members of the company's medical scheme as long as we live. The company also has a share incentive scheme which will also come to term by the time I am 55, which may be worth up to R1 million, which can be utilised as additional income. But, If I still am able to work, I doubt if I will go on pension at 55, but will seriously consider it at age 60.

 

[chrisc]

There are lots of formulas for calculating how much money you will need at any age for retirement. One I like was designed by UCT, see http://www.5qtools.co.za/applications/livingannuity/start.asp?p=uct

I retired at 60 with the main criteria that one's income must increase at least by 8% a year to keep up, plus you must allow R 200 000 every few years for a new car, some money for overseas travel. If you have R10 - R12m in the bank or in assets then you are away

 

[Ekstasis]

By the time I am 55, I would have been with the same company for 35 years. If I keep my pension with the company, I am guaranteed an income as long as I live, even if I live long enough to receive more than I have contributed. The monthly pension amount will also be subject to a yearly increase, coupled to inflation. If I pass away, and my wife still lives, she will continue to get 65% of what my pension was at the time of my death, which she will receive untill she also passes away. According to my benefits of employment, me and my wife will also continue to be subsidised members of the company's medical scheme as long as we live. The company also has a share incentive scheme which will also come to term by the time I am 55, which may be worth up to R1 million, which can be utilised as additional income. But, If I still am able to work, I doubt if I will go on pension at 55, but will seriously consider it at age 60.

That's the spirit