When Retirement Becomes Impossible

A01

Representative funded saver

GSX:POP-001:A01 · Model assumption · Version 1.0

Connected conditional claims

C01GSX:POP-001:C01In this funded-account model, a worker who starts at 25 on R30,000 a month, contributes 12 percent, and earns a 3 percent net real return exhausts a pension equal to 60 percent of final salary around age 70 if retirement begins at 60 and life lasts to 90.high sensitivity

C02GSX:POP-001:C02Under those same age-60 and age-90 assumptions, the account supports only about 27 percent of final salary for life. It does not support a 60 percent replacement at a 12 percent contribution and a 3 percent real return.high sensitivity