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Retirement Planning

Determine your retirement income goals and how to achieve them.

According to Alexander Forbes, sadly in South Africa only 6% of the population can afford to retire ‘comfortably’.

In order to ensure you’re not part of this statistic, we are here to help you plan for and manage your retirement well.

There are two phases
of Retirement Planning:

1. Pre-Retirement

Step 1: Establish how much income you need during retirement as well as other capital needs during retirement (e.g. go on a holiday trip or buy a house)

Step 2: Calculate how much capital you need to invest to reach these goals

Step 3: Invest in suitable financial products and assets accordingly to achieve these goals

Step 4: Review annually and make changes where necessary

2. Post-Retirement

Once you’ve retired, ensure that you have a plan to live out your retirement by managing your capital and financial behaviour well.

This includes:

Products: Having the right financial products from which you draw income (contractual vs discretionary investments)

Investment: Ensuring that your capital is appropriately invested to preserve its value and yet still have it grow suitably during your years of retirement.

Budgeting: Deciding on income drawn and managing your expenses with discipline and tax efficiency in mind.

In all of our planning and investment services, we mindfully consider how to maximise tax efficiency.

Retirement Calculator

Use our calculator below to see if your retirement plan is sufficient to sustain you through retirement.

Retirement Forecaster

Calculates the future value of savings, as well as income drawn at retirement.


Value of Savings at Retirement

These calculators are provided as a guide and illustration. Affluence Capital (Pty) Ltd. will not be held responsible for your reliance on these calculators for your financial planning. We recommend that you speak to one of our financial advisers and review your retirement plan regularly to ensure you meet your goals. The values used in our tools are determined using projections based on current assumptions about uncertain future outcomes. The actual future values will depend on the actual amounts that you invest and the associated investment performance, fees and taxes of your selected underlying portfolios.

I need help with planning my retirement.

FAQ’s

What is the average retirement age in South Africa?

Although one can retire from one’s occupation at any age, retirement from a financial product usually refers to a pension/provident or retirement annuity fund. In South Africa the retirement age for these products (i.e. when you can start to access the capital) is 55. Some companies may have different retirement ages for their employees’ pension fund depended on the rules of the trustees that administer the fund.

How long does one plan to be in retirement for?

Where retirement usually occurs between 55 and 65, one must ensure that your save sufficiently or have sufficient capital to produce the income you need whilst retired. With modern medicine this is becoming longer and longer, but on average you need to plan for around 20-30 years.

How much do I need to save to have enough income for retirement?

We provide clients with more detailed cashflow forecasting, but according to the 4% rule, you can take your annual expenses and multiply them by 25 and you will reach an amount that, when invested, can produce the income you require as expenses for at least 30 years. e.g. if you use R 30 000 p.m as your expenses, multiplying by 12 months gives you R 9 million require for investment to provide you with the enough capital to cover these expenses during your future retirement.