{"id":838221,"date":"2025-10-05T10:00:00","date_gmt":"2025-10-05T08:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=838221"},"modified":"2025-10-03T15:40:32","modified_gmt":"2025-10-03T13:40:32","slug":"how-much-you-need-to-retire-comfortably-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/838221\/how-much-you-need-to-retire-comfortably-in-south-africa\/","title":{"rendered":"How much you need to retire comfortably in South Africa"},"content":{"rendered":"\n

The amount you have to save to retire comfortably in South Africa can be worked out using three rules of thumb. <\/p>\n\n\n\n

How much money you need to retire comfortably also depends largely on how old you are now. This is according to 10X Investment Consultant lead Andre Tuck. <\/p>\n\n\n\n

\u201cThat number is the starting point, because it gives you an idea as to the time horizon you are working with. Clearly, the earlier you start, the more you are able to benefit from the compounding growth of your investments,\u201d he explained<\/a><\/strong>.\u00a0<\/p>\n\n\n\n

If you are invested in the right product with a reputable manager, retirement planning comes down to a simple formula. \u201cYour monthly contributions, plus consistency, plus time equals a better chance at a good return on your investment.\u201d<\/p>\n\n\n\n

Tuck cautioned, however, that there are no perfect formulas when it comes to retirement savings. \u201cIt\u2019s worth remembering that none of these rules of thumb is guaranteed to help you retire well,\u201d he said. <\/p>\n\n\n\n

\u201cThey are based on what I\u2019ve seen over the years and are offered as a sobering reminder to have realistic expectations for the income retirement investments can generate for you once you are no longer working.\u201d<\/p>\n\n\n\n

One of the most widely used guidelines is to multiply your final annual salary by 15. He explained that if, for example, your take-home pay is R25,000 a month in your final year of working, that would mean an annual salary of R300,000. <\/p>\n\n\n\n

To maintain your lifestyle after retirement, you\u2019ll need around 15 times your annual salary. In this case, roughly R4.5 million. <\/p>\n\n\n\n

However, he warned that if you want to do things you didn\u2019t get to do during your working years (such as travelling or taking up new hobbies) you should multiply your salary by 17, or even 20.<\/p>\n\n\n\n

Another rule of thumb is to assume you need R1 million saved for every R5,000 you want to draw as income per month. <\/p>\n\n\n\n

\u201cIf you want to draw a monthly pension of R25,000, you will need to have put away R5 million by the time you retire,\u201d Tuck noted.<\/p>\n\n\n\n

Start early, stay consistent, and be realistic<\/h2>\n\n\n
\n
\"\"<\/a>
10X Investment Consultant lead Andre Tuck<\/em><\/figcaption><\/figure><\/div>\n\n\n

A simpler calculation is to multiply your expected monthly needs by 300. \u201cSo if you think you\u2019ll need R25,000 per month, multiply that by 300 to arrive at R7.5 million,\u201d he explained. <\/p>\n\n\n\n

\u201cThis tends to give a higher number than the other formulas, which is a good thing\u2014it gives you a bigger safety net.\u201d<\/p>\n\n\n\n

These numbers can be intimidating, but Tuck stressed that the important thing is to start. \u201cHaving tried one of those calculations, you\u2019re probably thinking that you should ramp up your savings, and you should. As a country, we don\u2019t save enough.\u201d<\/p>\n\n\n\n

The South African Reserve Bank (SARB) has shown that the average South African spends 70% of their take-home pay on servicing debt.<\/p>\n\n\n\n

\u201cOur own research in the recently published 10X Retirement Reality Report found that 71% of respondents had no retirement savings plan at all, or just a vague idea of one,\u201d Tuck added.<\/p>\n\n\n\n

\u201cDon\u2019t wait until the end of the month to save or invest. As soon as your salary comes in, invest a portion for your retirement. That way, you can spend what\u2019s left in good conscience. This is a small change that can have massive, life-altering consequences.\u201d<\/p>\n\n\n\n

Tuck also advised being mindful of how you invest. \u201cHave the correct asset allocation within your investment portfolio. Being diversified in all asset classes throughout the retirement journey will ensure the protection of your capital.\u201d <\/p>\n\n\n\n

At the same time, be cautious about costs. \u201cDon\u2019t pay high fees. Do your homework on your investment management fees, because they compound against you the longer you are invested. Do not fund someone else\u2019s retirement, look after your own needs.\u201d<\/p>\n\n\n\n

\u201cStart early, stay consistent, and be realistic about the lifestyle you want to maintain after you stop working. The future you will thank the present you,\u201d added Tuck.<\/p>\n","protected":false},"excerpt":{"rendered":"

An expert highlighted three rules of thumb to work out the amount you have to save to retire comfortably in South Africa. <\/p>\n","protected":false},"author":92,"featured_media":696539,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[11953,4646,853],"class_list":["post-838221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-10x-investments","tag-retirement","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=838221"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838221\/revisions"}],"predecessor-version":[{"id":838243,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838221\/revisions\/838243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/696539"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=838221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=838221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=838221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}