The cost of dipping into savings
Most retirement fund members face living on 20% of last salary
More than half of SA's retirement fund members are retiring on a pension that is 20% or less of their last salary, the latest research from Alexander Forbes reveals. The data in Alexander Forbes's latest Member Watch is collected from the more than 2,000 retirement funds the company administers and more than 1-million members of those funds. The findings tie in with those of another major survey of funds and members conducted this year by Sanlam. In its Benchmark survey, trustees canvassed were of the view that less than 16% of retirement fund members are on track to achieving their retirement goals and 85% of members will not be in a financial position to maintain their pre-retirement standard of living. Michael Prinsloo, the managing executive of research and product development at Alexander Forbes, says while the industry norm is for South African retirement funds to target a pension in retirement of between 60% and 75% of your final salary, the analysis has found that only about...
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