The Hundred-Year Life

C01

If a conventional life retires at 65 and the person lives to 120, retirement lasts 55 years and the modelled pension finances only 57 percent of the target income, even with uninterrupted employment.

GSX:POP-007:C01 · Modelled · Conditional · high sensitivity · Version 1.0

Depends on

A01Extended healthy adulthoodThe scenario asks what changes if people routinely live to 100 or 120 with a substantial extension of healthy adult life. Current South African life expectancy is far shorter. This is not a projection that the average person will soon live to 120.high sensitivity

A02Common starting pay and savingAll four lives begin with the same R30,000 monthly salary when work starts. Earnings grow by 1.2 percent a year above inflation. Pension contributions are 15 percent of pay and earn 4 percent a year above inflation. Values are constant 2026 rand.moderate sensitivity

A03Conventional three-stage lifeThe conventional life has three years of university, 42 years of full work, and retirement at 65. If the person lives to 120, retirement lasts 55 years.high sensitivity

Modelled results cited

R01Conventional three-stage life, life to 120Even with uninterrupted employment, the conventional pension fund finances only 57 percent of the target income if retirement at 65 is followed by life to 120.modelled

Registered supporting sources

The Hundred-Year Life · GSX:POP-007:PDF