Retirement Calculator: Plan Your Retirement Savings and Income
Use our South African retirement calculator to estimate your retirement savings, your future monthly income, and whether you are on track to meet your retirement goals. Enter your age, current savings and contributions, and get an instant projection with a full year-by-year breakdown.
Calculate My Retirement Plan ↓Retirement Calculator
Enter your details below, then press Calculate to see your projected retirement savings and income.
Retirement Savings at Retirement
R 0
Projected value at your planned retirement age
Enter your details above and press Calculate to see your recommended monthly contribution.
Retirement Projection
| Age | Years From Now | Projected Savings Balance |
|---|
This projection shows how your retirement savings could grow based on the details you entered.
A retirement calculator estimates how much your retirement savings will grow to by your planned retirement age, and whether that amount is enough to fund your desired monthly income for the rest of your life. It works by projecting your current savings and monthly contributions forward using your expected annual return, then comparing the result to the capital needed to sustain your desired income, adjusted for inflation, through to your life expectancy. Use the calculator above for your own estimate, and always confirm your retirement plan with a qualified financial advisor.
How to Use the Retirement Calculator
Three quick steps to an accurate retirement estimate.
- 1 Enter your age details. Add your current age, planned retirement age and life expectancy so the calculator knows how long you have to save and how long your income needs to last.
- 2 Enter your savings and contributions. Add your current retirement savings, monthly contribution, expected annual return and expected inflation rate.
- 3 Press Calculate. Your projected retirement savings, monthly income estimates and a full year-by-year breakdown appear instantly. Use “Copy Result” to save it for your own records.
The Retirement Calculation Formula
The calculator projects your savings forward, then compares that projection to what your desired income requires.
Monthly Income (Future Value) = Desired Monthly Income × ( 1 + Inflation Rate ) ^ Years Until Retirement
Required Capital = PV( Monthly Income (Future Value), over Years in Retirement, at Expected Real Return )
Shortfall or Surplus = Retirement Savings at Retirement − Required Capital
Your current savings and monthly contributions are grown forward using compound growth at your expected annual return. Your desired monthly income is inflated to what it will actually cost in future terms, then converted into the lump sum needed to sustain that income from retirement through to your life expectancy. If your projected savings fall short of this required capital, the calculator estimates the extra monthly contribution needed to close the gap.
Worked Example
A real calculation showing how the projection is built.
Example: Saving from age 35 to retirement at 65
| Current age | 35 |
| Planned retirement age | 65 |
| Current retirement savings | R 250,000 |
| Monthly contribution | R 4,500 |
| Expected annual return | 9% |
| Expected inflation rate | 5.5% |
| Desired monthly income (today’s value) | R 25,000 |
| Life expectancy | 85 |
| Years until retirement | 30 |
| Projected savings at retirement | Grown using compound monthly contributions at 9% per year |
| Monthly income needed (future value) | R 25,000 inflated at 5.5% per year for 30 years |
Enter these same numbers into the calculator above to see the exact projected balance, required capital and any shortfall or surplus for this scenario.
South African Retirement Planning: The Complete Guide
Planning for retirement means understanding not just how much you are saving today, but whether that amount will actually be enough to support the lifestyle you want once you stop working. This retirement calculator brings together your savings, contributions, expected growth, inflation and life expectancy into a single projection so you can see where you currently stand.
Retirement savings growth
Your current retirement savings and monthly contributions grow over time through compound investment returns. The longer your money has to grow, and the higher your consistent monthly contribution, the larger your retirement savings will be by the time you retire. Small increases in your monthly contribution, made early, can have a significant impact on your final balance because of compounding.
Monthly retirement income
After you retire, your retirement savings are typically used to provide you with a monthly income, whether through a pension, a living annuity or a life annuity. Because prices rise over time, the monthly income you want today will need to be higher in rand terms by the time you actually retire. This calculator inflates your desired income to show what it is likely to cost in future terms.
Retirement shortfall and surplus
A shortfall means your projected retirement savings are not expected to be enough to fund your desired monthly income for your full life expectancy. A surplus means your projected savings are expected to exceed what you need. Either result is useful for planning, since it shows whether you need to increase your contributions, adjust your expectations, or whether you are already on track.
Retirement tax in South Africa
Retirement benefits in South Africa are taxed differently depending on how you access them. Lump sums taken at retirement are taxed according to specific retirement lump sum tax tables, while ongoing monthly retirement income is taxed under standard income tax rules. This calculator focuses on your savings and income projection rather than a detailed tax calculation, since lump sum tax depends on your full withdrawal history. For a dedicated lump sum and tax estimate, use our Lump Sum Retirement Calculator.
Early retirement
Retiring earlier than planned reduces the number of years your contributions have to grow and increases the number of years your savings need to last. Both effects reduce your projected monthly income. You can use this calculator to compare different planned retirement ages and see how retiring earlier or later changes your outlook.
Methodology
This calculator grows your current savings and monthly contributions forward using compound growth at your expected annual return, compounded monthly, over the years until your planned retirement age. It inflates your desired monthly income to its future value using your expected inflation rate, then estimates the capital required to sustain that income from retirement to your life expectancy using an expected real rate of return. Any gap between your projected savings and this required capital is shown as a shortfall or surplus, along with a recommended additional monthly contribution where relevant.
Assumptions used in this calculator
- Your expected annual return and inflation rate remain constant for the full projection period.
- Monthly contributions are assumed to stay the same in rand terms unless you update them.
- This calculator does not apply South African retirement lump sum tax tables or income tax on your monthly retirement income.
- This calculator does not account for fund-specific fees, product charges or regulation 28 investment limits.
- Results are estimates for planning purposes only and are not a guarantee of future investment performance.
Frequently Asked Questions
Retirement tax is calculated using SARS retirement tax tables for lump sums and standard income tax tables for monthly retirement income. Previous withdrawals can also affect your tax liability at retirement.
Most South African retirement funds limit the lump sum you can take. The remaining balance is typically used to provide a monthly retirement income.
This calculator provides estimates based on the details you enter and common planning assumptions. Actual results may vary depending on your fund, investment growth, fees, and future changes to tax rules.
Early retirement reduces the time your contributions have to grow and increases the number of years your savings need to last, which generally lowers your projected monthly income. Enter an earlier planned retirement age above to see the effect on your own numbers.
Generally, UIF cannot be claimed after full retirement. UIF is designed to provide short-term relief for unemployment, not to support retirement income.
A retirement shortfall is the gap between the retirement savings you are projected to have and the capital required to sustain your desired monthly income for your full life expectancy. This calculator also estimates the extra monthly contribution needed to close that gap.