We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

South Africans have saved, on average, only R1.8m to buy a pension at retirement, but expect to receive R12,000 a month as a pension income, but the reality is that their capital is 22% short of the amount they need to achieve their goal at current annuity rates. If these retirees want to invest their nest egg into a living annuity instead of a traditional annuity, they need retirement savings of R3.6m. South Africans’ expectations of what their retirement income will be, based on current savings and returns, will not be realised, says Bjorn Ladewig, longevity actuary at specialist retirement income company, Just SA. “There is a major gap between expectation and reality.” On average, respondents in “Just Retirement Insights”, an independent survey commissioned by Just SA, expect a monthly income in retirement of almost R12,000. This implies an expected annual income rate of 8%, based on their average retirement savings of R1.8m.

However, in current market conditions this expec...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now