Retirement Calculator: How Much Do You Need to Save?

Most people in South Africa are not saving enough for retirement. The challenge is knowing exactly how much is enough. Our calculator gives you a clear personalised number.

How to use the calculator

1. Enter your current age and target retirement age
2. Enter your current retirement savings balance
3. Enter your monthly contribution
4. Enter expected annual return (6-8% is reasonable)
5. Enter expected annual inflation (5-6% typical for South Africa)
6. Enter the monthly income you want in retirement
7. Enter how many years you expect to be retired (25-30 is common)

The South African retirement picture

Only 6% of South Africans retire financially independent. The state old age grant (R2,080 per month) is far below what most people consider comfortable.

The 25x rule

You need 25 times your annual spending in savings to retire comfortably, assuming 4% annual withdrawals.

If you want R30,000 per month in retirement: Annual spending: R360,000 Required savings: R9,000,000

Key retirement planning tips

1. Start immediately even with small amounts
2. Never cash out your pension when changing jobs
3. Increase contributions with every salary increase
4. Get professional financial advice

Frequently asked questions

What return rate should I use? For a balanced retirement fund, 7-9% before inflation is commonly used in South Africa.

Should I include the state pension? In South Africa the state grant can be included as a conservative floor.

What happens if I retire early? Early retirement requires a significantly larger nest egg due to more years of withdrawals.