How South African retirement savings are projected
This calculator uses the standard future-value formula for a present lump sum combined with regular monthly contributions, compounded at your expected annual return:
Where: PV = current savings | PMT = monthly contribution | r = monthly rate (annual ÷ 12) | n = months to retirement
The real (inflation-adjusted) value is calculated by discounting the nominal fund value at your expected inflation rate over the same period: Real Value = Nominal ÷ (1 + inflation)^years. This tells you what your fund will be worth in today's money.
The 4% drawdown rule is a widely used guideline suggesting you can withdraw 4% of your portfolio per year in retirement without depleting the fund over a 30-year horizon. The estimated monthly income shown is: Real Value × 4% ÷ 12.
South African RA tax rules (as of 2025/26):
Contributions to a Retirement Annuity (RA) or pension fund are tax-deductible up to 27.5% of your taxable income, capped at R350,000 per year. Any unused deductions are carried forward and can offset tax at retirement.
At retirement you may take up to one-third of your fund as a lump sum. The first R550,000 is tax-free (lifetime limit). The remainder must be used to purchase an annuity, which provides your monthly pension income.
This calculator provides a projection only — it assumes a constant return and contribution and does not account for tax on withdrawals, fund fees, or changes in legislation. Speak to a registered financial adviser for personalised retirement planning.