When Retirement Becomes Impossible

C02

Under 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.

GSX:POP-001:C02 · 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

R02Age-60 retirement, life to 90, 12 percent contribution, 3 percent real returnUnder the same age-60 and age-90 assumptions, a 12 percent contribution with a 3 percent real return supports only about 27 percent of final salary for life.modelled

Registered supporting sources

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