Retirement / General

Hey, Gen Y and Gen Z do you think you can retire comfortably?

Millions of South Africans rely on the money saved in their employers’ retirement fund to earn an income in retirement. For many people, this is their only formal savings for retirement. Unfortunately, too often, this money is still not enough to sustain them in retirement.

Safeguard Your Golden Nest Egg

Clearing that retirement hurdle

The average combined retirement benefits contribution by employers and employees to standalone retirement funds topped 17.5% in 2022, according to the latest Sanlam Benchmark survey. Commenting on the result, Sanlam said that “the pressurised business environment had led to a slight decrease in contributions from employers in both standalone and umbrella funds, while member contributions had risen somewhat to compensate for the shortfall”. Standalone fund employees are contributing 17.53% of their gross salary to employee benefits, jointly between employer and employee, compared to a 14.65% contribution in the umbrella funds space.

Busting the myth: 4% ‘rule of thumb’ drawdown rate