What percentage of your monthly income do you save for retirement?

What percentage of your monthly income do you save for retirement?

  • Nothing

    Votes: 75 25.2%
  • 10%

    Votes: 81 27.2%
  • 20%

    Votes: 55 18.5%
  • 30%

    Votes: 23 7.7%
  • 40%

    Votes: 4 1.3%
  • More than half

    Votes: 14 4.7%
  • I am already retired

    Votes: 21 7.0%
  • I do not plan on retiring

    Votes: 25 8.4%

  • Total voters
    298

Other Pineapple Smurf

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Joined
Jun 21, 2008
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14,277
Would you be taxed on R2.5M?

What about taking it (or 1.5M) offshore i.e. as ZAR loses value against USD your money becomes worth more.

Well, that depends on your timing. Friend dumped his property and shipped his money when Rand tanked years back against the pound in 2015. The Rand is stronger today than back then.

Not so sure about the tax implications but we agreed that our properties should not be our only retirement nest egg. We will only move out of the house into the retirement property once my wife closes her business. She could do it at 60 or only at 70.

The bachelor flat might be worth keeping as income for her as it she would then still draw her full SASSA as the pension would be my account. But we will see how tax and SASSA works in 18 years time.
 

hjst45

Senior Member
Joined
Mar 23, 2013
Messages
576
The problem is that eventually you will pay tax on that when you withdraw it. One way or another SARS will get their hands on your retirement savings.

If there's anything left by the time you want to withdraw after the government is done "borrowing" your life savings.
 

The_Ogre

Honorary Master
Joined
Apr 30, 2010
Messages
26,063
Would you be taxed on R2.5M?
No, they'd be taxed on the proceeds only if it exceeds 2m - I'm saying "they", assuming that they're both listed on the title deed.

If they bought the house in 19 voetsek for R100 000 and sell it for R3m. They've made a R2.9m profit so they have to pay CGT on R900 000. Since SARS only classifies us as either juristic or natural - there's no tax for couples - , him and his wife will each have to declare R450 000 's worth of CGT
 

NarrowBandFtw

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Joined
Feb 1, 2008
Messages
22,232
Other: is that gross or net monthly income?

cause, you know, over 40% of the gross goes to new BMWs / Mercs for the ANC, not my retirement
 

RVQ

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Joined
Apr 30, 2007
Messages
2,115
Focus of my younger years while in SA was clearing debt, only really focused on retirement after 35 and so glad I did, emigrated and maxing my yearly allowance of £40K per year. Do have decent amount of money locked in SA retirement funds and haven't really decided what to do with that yet.
 
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Wary GOM

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Aug 23, 2019
Messages
1,694
50% when working, so built up a reasonable investment and savings amount. Not now formally employed and retired from previous job so not saving for retirement now. Still consulting when and if work comes along - I actually enjoy my work now I am retired!
 

BuckRogers

Senior Member
Joined
Jan 17, 2012
Messages
611
No, they'd be taxed on the proceeds only if it exceeds 2m - I'm saying "they", assuming that they're both listed on the title deed.

If they bought the house in 19 voetsek for R100 000 and sell it for R3m. They've made a R2.9m profit so they have to pay CGT on R900 000. Since SARS only classifies us as either juristic or natural - there's no tax for couples - , him and his wife will each have to declare R450 000 's worth of CGT
Sars gives you the option to use 20% of the proceeds as base cost, so you can get away with 400k gain in total, 200 each at 18% inclusion rate, you will pay minimal.
 

SauRoNZA

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Jul 6, 2010
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41,474
Around 30%.

More if I include the fact that I’m overpaying my bond significantly to get it done under 10 years and thereby savings massively on interest.
 

Corelli

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Joined
Jun 20, 2008
Messages
2,199
10% and I am getting 14% interest per month.

At the moment I score about R25k on growth per month alone. Sure its not much but its decent.

You know the sad reality. Many dont save, then believe they will get State Pension which is a wellfare grant. then complain why the tax payers dont pay more tax so they get R7500pm. Because they lived up their money with fancy phones and GTIs
 

Dan C

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Joined
Nov 21, 2005
Messages
30,564
10% and I am getting 14% interest per month.

At the moment I score about R25k on growth per month alone. Sure its not much but its decent.

You know the sad reality. Many dont save, then believe they will get State Pension which is a wellfare grant. then complain why the tax payers dont pay more tax so they get R7500pm. Because they lived up their money with fancy phones and GTIs
Where the hell do you get 14% ?
 

Corelli

Expert Member
Joined
Jun 20, 2008
Messages
2,199
Well, that depends on your timing. Friend dumped his property and shipped his money when Rand tanked years back against the pound in 2015. The Rand is stronger today than back then.

Not so sure about the tax implications but we agreed that our properties should not be our only retirement nest egg. We will only move out of the house into the retirement property once my wife closes her business. She could do it at 60 or only at 70.

The bachelor flat might be worth keeping as income for her as it she would then still draw her full SASSA as the pension would be my account. But we will see how tax and SASSA works in 18 years time.
If you own property valued over R1.2 million you cant claim SASSA.

SASSA is only R1800pm. Not more.

They do an assesment as to how much you have.

So yip you may contribute tax for 50 years, but you wont get SASSA.
 

Corelli

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Jun 20, 2008
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2,199
My pension fund bought into Apple, Tesla, Amazon abroad....
and ABSA, Standard Bank, Nedbank, Naspers locally. Then some other equities.
 

Other Pineapple Smurf

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Joined
Jun 21, 2008
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14,277
If you own property valued over R1.2 million you cant claim SASSA.

SASSA is only R1800pm. Not more.

They do an assesment as to how much you have.

So yip you may contribute tax for 50 years, but you wont get SASSA.
Thanks for pointing that out. Checked and if married, it's R2,4million property and R165K income pa. Might be a reason for the increase of cohabitation we are seeing with elderly couples in our area where they chose not to marry.


Treating retirement with the expectation that someone else will look after you is a very bad approach. My dad did that and now I have to look after him while he blows his SASSA grant on fish-n-chips (seriously).

Then a lot can still happen in the next 13 years before I hit SASSA age of 60. Will rather throw more into my pension and enjoy the tax rebates.
 
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