Questions South Africans ask about retirement

South Africans are worried — and for good reason. Recent national studies show a clear trend: most South Africans fear they won’t retire comfortably and don't know how much they'll need.

- Wouter Fourie

According to the 10X Retirement Reality Report 2024, only about 6% of people expect a comfortable retirement.

So, what are the biggest questions people are asking, and what does the evidence say?

'How much do I need to retire in South Africa?'

Start with a replacement ratio of 70%-80% of your final salary to maintain your lifestyle. More important, focus on drawdown rate, the percentage of capital you withdraw each year.

Industry data from Asisa [Association for Savings and Investment SA] shows the average living annuity drawdown is about 5.6%, still too high for many retirees if inflation runs above 6%.