When Retirement Becomes Impossible

C01

In 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.

GSX:POP-001:C01 · Modelled · Conditional · high sensitivity · Version 1.0

Depends on

A01Representative funded saverThe funded account starts at age 25 with a gross salary of R30,000 a month, continuous employment, and amounts in constant 2026 rand before personal income tax. Salary grows with productivity.high sensitivity

A02Age-60 funded pathThe age-60 headline path contributes 12 percent, earns a 3 percent net real return, retires at 60, and is tested against life to 90. The target pension in the exhaustion path is 60 percent of final salary.high sensitivity

Modelled results cited

R01Start at 25, R30,000 a month, 12 percent contribution, 3 percent net real return, retire at 60, live to 90For the age-60 path, a pension equal to 60 percent of final salary is exhausted around age 70 when life lasts to 90. The modelled pot at retirement is R3.25 million.modelled

Registered supporting sources

When Retirement Becomes Impossible · GSX:POP-001:PDF