Retirement Calculator
It is the biggest financial question most people never calculate: how much do you actually need to retire? The answer comes down to your expenses and a simple rule.
The 4% rule
A widely used guideline says you can safely withdraw about 4% of your retirement savings each year without running out. Flip it around and you need roughly 25 times your annual expenses invested.
| Monthly income needed | Annual | Nest egg required |
|---|---|---|
| R15,000 | R180,000 | ~R4.5m |
| R20,000 | R240,000 | ~R6m |
| R30,000 | R360,000 | ~R9m |
| R40,000 | R480,000 | ~R12m |
Try it with your own numbers:
Check if you are on track →Why it is less scary than it looks
Those numbers seem huge, but compounding over decades does most of the work. Starting at 25, saving R3,000/month at 10% gets you past R6 million by 60 — without you ever contributing anywhere near that total yourself.
The retirement annuity advantage
Contributing to a retirement annuity reduces your taxable income now (up to 27.5%, capped at R430,000/year) while building your nest egg. It is the most tax-efficient retirement vehicle for most South Africans — see our RA guide.
Are you on track?
Use the retirement calculator to project your nest egg, and the financial coach to score your retirement readiness against your age.