Tool | Calculate if you’ll have enough money for retirement

Most of us contribute to a pension fund or retirement annuity every month without knowing what the final number might look like.

This tool brings everything together. Add what you already have, what you contribute each month and what you’d like to live on when you retire. It then shows your projected retirement fund in today’s Rands, so the number is easier to understand.

For example, someone aged 36 with R680,000 invested and contributing R13,000 a month could have around R7.9 million by age 60, based on the assumptions entered.

At a 4.5% annual drawdown rate, that fund could provide roughly R29,500 per month. If their target income is R40,000, they would have a projected shortfall of about R10,500 per month.

The tool also calculates what it may take to close that gap. In this example, an additional contribution of around R6,400 per month could help bring the projected income closer to the target.

Use Wealthbit’s Retirement tool to calculate your retirement number and see whether what you’re building is on track to get you there.

The tool gives you a clear view of:

• What your investments could be worth when you retire
• How much monthly income your fund could provide
• Whether that income matches what you want to live on
• The size of any projected shortfall
• How much more you may need to contribute each month
• How your retirement age, returns and drawdown rate affect the result
• Whether you could be making better use of retirement contribution tax benefits

This tool forms part of Wealthbit’s Financial Freedom Programme®.

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