National Savings Month brings increased awareness of the benefits of saving and may prod you into doing a valuable check on whether you are saving enough to provide a reasonable pension in retirement. Ideally, you should get a thorough analysis from an independent financial adviser who will use software and assumptions to project just how much you will have by the time you get to retirement age, what kind of income these savings will provide, and how long that income will last. A good adviser will even make provision for irregular expenses in retirement, such as replacing your vehicle or having a major medical procedure. But for a rough guide that may spur you into doing a more detailed analysis, you can use a rule of thumb to check if you are on track to reaching your retirement goal. Recently, Allan Gray and Sanlam set out rules of thumb on how much you should have in your pension, provident or retirement annuity fund or funds to generate a reasonable pension. Sanlam, in its Bench...
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