Pieter, 50: starting late
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Not a real person, and not advice. Pieter is a made-up example: 50, earning R35 000 a month before tax, with only R250 000 saved for retirement and R4 550 a month (13% of his salary) going in from him and his employer together.
Pieter’s plan
Seven steps through the retirement calculator · today’s Rands, after inflation · SARS 2025/26 tables
Late is not too late — but the gap does not fully close.
If nothing changes, a person like Pieter retires at 65 on about R5 145 a month — 20% of what he needs, and spending what he needs, the money runs out at 71. After the seven steps below he retires at 70 on R13 960 a month from a R4.19m pot: 67% of a R21 000 need. Spending the full R21 000 instead, the money lasts past 100 — but only if growth holds at 5% above inflation.
Gap down from R 21 105 to R 7 040 a monthR35 000 less PAYE R 6 289 and UIF R 177 a month.
Up from R4 550 (13% of salary). It costs him R3 000 of take-home; SARS gives R1 333 back.
60% of today’s spending kept, down from the 75% rule of thumb (R26 250).
Up from R1.54m at 65 if nothing changes.
What that pot pays at a 4% drawdown. Was R5 145.
Spending the full R21 000 a month, if growth holds at 5%. It ran out at 71 before.
Step 1: he enters his six numbers
| He enters | The calculator shows |
|---|---|
| Age 50 · retire at 65 | Pot at 65: R 1.54m (R 1 543 524) |
| Saved R250 000 · R4 550 a month (13%) | Monthly income: R 5 145 |
| Salary R35 000 · no two-pot cash-in | Income needed: R 26 250 (75% of salary) |
| First result | 19.6% of what he needs · money runs out at 71 |
Step 2: he saves R3 000 more a month
| He changes | The calculator shows |
|---|---|
| Added each month: R4 550 → R7 550 | Pot at 65: R 2.26m · R 7 548 a month |
| Cost in take-home pay | About R 2 070 (31% marginal rate) |
| Result | 28.8% of what he needs · money runs out at 74 |
Step 3: he works to 70
| He changes | The calculator shows |
|---|---|
| Retire at: 65 → 70 (still R7 550 a month) | Pot at 70: R 3.25m · R 10 819 a month |
| Result | 41.2% of what he needs · money runs out at 84 |
- At 50, saving more and working longer are worth about the same. Working to 70 on the old R4 550 alone gives R 7 246 a month, 27.6%, against 28.8% for saving R3 000 more. Doing both is what counts.
Step 4: he uses the tax relief fully
| He changes | The calculator shows |
|---|---|
| Gives up R3 000 of take-home, not R2 070 | That pays for R 4 333 more a month; SARS gives R 1 333 back |
| Added each month: R7 550 → R8 883 | Pot at 70: R 3.72m · R 12 407 a month |
| Result | 47.3% of what he needs · money runs out at 87 |
- Retirement contributions reduce taxable income within the legal limits — 27.5% of income, up to R 9 625 a month for him. At R 8 883 he is now close to that limit.
Step 5: he looks at what his savings cost him
| He changes | The calculator shows |
|---|---|
| Growth above inflation: 4% → 5% | Pot at 70: R 4.19m · R 13 960 a month |
| Result | 53.2% of what he needs · money runs out at 93 |
- Growth here is after costs. If a person like Pieter paid about one percentage point a year more than he needs to, cutting it has this effect. Whether he can is a question for his fund statement or an authorised adviser.
Step 6: he works out what he will really need
| He changes | The calculator shows |
|---|---|
| Share of expenses kept: 75% → 60% (bond paid off, children independent) | Income needed: R 21 000 · still R 13 960 a month |
| Result: the plan he accepts | 66.5% of what he needs (still “Behind”) · money lasts past 100 |
- Two honest readings of the same pot. At a 4% drawdown, which is built to leave the pot standing, it pays 66.5% of what he needs. Drawing the full R21 000 instead, it lasts past 100 — but only if growth holds at 5% above inflation every year.
Step 7: part-time work, while it lasts
| He changes | The calculator shows |
|---|---|
| R6 000 a month part-time, so the pot pays about R15 000 (43% of expenses kept) | 92.8% of what the pot must pay (“Close”) · money lasts past 100 |
- This only holds while the part-time income lasts. The calculator has no part-time slider, so it is shown as needing less from the pot. When the work stops, he is back to step 6.
The whole journey
| Step | Pot at retirement | Monthly income | Share of what he needs |
|---|---|---|---|
| 1. His six numbers, retire at 65 | R 1.54m | R 5 145 | 19.6% |
| 2. R3 000 more a month | R 2.26m | R 7 548 | 28.8% |
| 3. Work to 70 | R 3.25m | R 10 819 | 41.2% |
| 4. Full tax relief: R8 883 a month | R 3.72m | R 12 407 | 47.3% |
| 5. Growth 5% after lower costs | R 4.19m | R 13 960 | 53.2% |
| 6. Needs R21 000, not R26 250 | R 4.19m | R 13 960 | 66.5% |
- Saving more and working longer together are what nearly triple his income.
- Being honest: his plan does not close the whole gap. Closing it would take the maximum deductible R 9 625 a month (R 3 549 of take-home) and working to 75.
- Going from 20% to 67% is still a very different retirement — and spending what he needs, his money lasts past 100 instead of running out at 71, if growth holds.
Now run your own numbers
Pieter’s story is an illustration. Yours is the one that counts: six numbers, about a minute, no sign-up.
How the numbers are worked out
- Every figure is what the live retirement calculator shows for Pieter’s inputs — growth 4% a year after inflation and costs unless a step changes it, so every figure is in today’s Rands.
- Income needed starts at 75% of gross salary, and the pot is drawn down at 4% a year.
- “Money runs out at” spends the full income needed every year from retirement, with the rest of the pot still growing.
- Tax uses the SARS 2025/26 tables: primary rebate R17 235, UIF 1% capped at R177.12 a month, retirement deduction 27.5% of income up to R350 000 a year.
Illustration, not advice. Pieter is not a real person and his figures are not a prediction. Real returns go up and down. MaxWealth is not an authorised financial services provider and never names or recommends a financial product; for advice on what to buy, speak to an authorised financial adviser.