Retirement planning

geezer said:
Unless I am doing something wrong, there's something off with this calculator.

I used a hypothetical scenario but was in line with my own situation. When I was 60 years old, I had roughly about R10 500 000 in my pension fund. That would have given me ±R65 000 per month, and ±R44 000 per month after tax. I went on pension just after I turned 61 the next year.

I put those values into the calculator, but it indicated that I needed to pay in an extra R717 733 per month to achieve a goal of getting R44 000 per month after tax. That extra per month would have added an extra R8 612 796 (excluding any interest gained)to my existing R10 500 000 making a total of R19 112 796. That amount would have given me more than R120 000 before tax deducted, which probably would have been roughly R75 000 after tax. This is almost double the targeted monthly income of R44 000 after tax.
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I will DM you my details so you can put me in your will.
 
I was in a rather serious car accident in October 2025.
While recuperating at home - booked off for 6 weeks due to fractured vertebrae - I had lots of time to think.

Long story short - retired at 56 end of April 2026. Pension.

Life is just to short and precious to "waste" it all on working for more money.

I do know that everybody's circumstances is different.
 
I also have a Two-Pot Savings Withdrawal Calculator.

It shows what actually lands in your account after tax and your fund's admin fee, since a savings pot withdrawal is taxed as ordinary income at your marginal rate, with no R550,000 tax-free threshold. It also shows the number most tools skip, what that withdrawal costs your retirement pot by the time you retire, because the full amount leaves the fund and stops compounding for you.

southafricafacts.co.za

Two-Pot Withdrawal Tax Calculator South Africa 2026/2027

See what you actually get from a two-pot savings withdrawal after tax and fees, and what it costs your retirement pot if left invested instead.
southafricafacts.co.za southafricafacts.co.za
 
icarusza said:
The tool says "in today's money". Won't that be heavily devalued by the time of retirement?
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"Today's money" means it's already inflation-adjusted, so it's not ignoring inflation, it's stripping it out for you. The nominal rand amount you'll actually need in future will be way higher, but this shows you the equivalent buying power in today's terms so it's easier to compare.
 
icarusza said:
The tool says "in today's money". Won't that be heavily devalued by the time of retirement?
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That should mean the devaluation i.e. inflation has been taken into account. So say it says R25 000 "in todays money", the actual amount you will receive in the future will be, say, R45 000. But it is then discounted to show you that R45 000 in the future will (approximately) buy you what R25000 will today.

It's a good feature, otherwise people will go whoo-wee, I will be rich in future and don't need to save more :)
 
TheOracle said:
"Today's money" means it's already inflation-adjusted, so it's not ignoring inflation, it's stripping it out for you. The nominal rand amount you'll actually need in future will be way higher, but this shows you the equivalent buying power in today's terms so it's easier to compare.
Click to expand...

You beat me to it :)
 
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