Let’s talk numbers, no guessing games. How much is enough? Bad question: “enough” is personal; your number depends on you.
Retirement is an interesting conversation, but sometimes people ignore this topic. Or the so-called high achievers often think retiring is for lazy people.
It’s more like saying getting old is an irrelevant subject for the young. Why worry about it? You are not old. Not so. It doesn’t help to build the bridge when the river is already flooded.
Retirement is a people’s conversation; as long as you are human. “When I grow up I want to retire” only works when you start to do the work today.
Most people get stuck on the how much without understanding how to start. Retirement planning starts by working, but most people end there. Planning is the key.
I am not talking about your funeral policies; most South Africans are oversold these. To understand how much you need to retire, you first need to understand your expenses today.
Sorry, but if you don’t know how much you are spending on your Checkers groceries, you can’t bake the retirement cake without understanding the ingredients.
Put too many raisins in it, and your cake might lose substance too.
What Does Retirement Mean in South Africa?
Retirement is not about being lazy; it’s about actually owning your time.
It’s not about sitting down to watch TV all day and possibly a game of Bingo or bowling on the greens. The idea is about buying options and choices.
Maybe to start a business at your own pace. Perhaps a passion project, it’s okay if you are thrilled by writing or painting.
The fun part is, if you indulge me, we can talk about it now; no need to wait until you are 65. The freedom mindset is not about stopping working, but choosing to do work you love. And intentionally designing your everyday life with that in mind.
Most of us can agree we didn’t choose our current jobs.
This is the kind of framework that compels a geographer-turned-retail-worker into a financial freedom blogger.
Why Your Retirement Number Is Personal
Okay, enough waffling let me talk about the ingredients of your retirement maths.
There is no single retirement number for everyone; there is your tailor-made number.
I say tailor-made because that’s what it is. Your neighbor’s craving for iced boba tea is theirs, not yours.
Your number might not include the cost of Squish-mallows or Lego. Mine probably would; that’s the reality of being a parent.
To get to your number, you need to start with the budget.
An understanding of your income, expenses, and savings is a prerequisite.
Real numbers: how much does your housing situation cost, electricity, groceries, medical aid, transport and don’t forget your pool maintenance.
It’s almost summer in South Africa; make sure that green algae is cleaned.
No judgment, but have you seen the price of an 8kg HTH pool chlorine bucket? It’s over R500.
Definitely, owning a swimming pool in Mzansi is pure luxury. Lucky me, I live in Durban; sea swimming is both economical and therapeutic.
Most times we think retiring requires some standard amount maybe 10 million Rand, or perhaps 15, who knows?
Here is the standard answer even your financial advisor will start with: your expenses (I should say a good financial advisor;
I know some will start by selling you whole life insurance).
How to Calculate Your Retirement Number
Here is a simple example of how to calculate your financial independence number:
Monthly expenses × 12 = Annual expenses
Annual expenses × 25 = Illustrative FI target
R20,000 × 12 = R240,000
R240,000 × 25 = R6,000,000
This is the base guideline. It’s something to work with.
Technically, this R6 million isn’t a universal retirement amount.
It’s an illustrative freedom amount based on the Rule of 25, a simple rule of thumb.
Your Financial Independence (FI) number gives you a useful starting point for working out how much you may need to support your lifestyle without relying entirely on a salary.
Your actual retirement number will depend on your circumstances, including your expenses, investments, other income, lifestyle costs and how long your money needs to last as well as inflation.
How Your Monthly Expenses Determine Your Retirement Number
| Monthly retirement expenses | Annual spending | Illustrative FI target |
| R10,000 | R120,000 | R3 million |
| R15,000 | R180,000 | R4.5 million |
| R20,000 | R240,000 | R6 million |
| R30,000 | R360,000 | R9 million |
| R40,000 | R480,000 | R12 million |
These figures are illustrations, not guarantees. The Rule of 25 is a simple rule of thumb based on a 4% withdrawal-rate assumption.
Real retirement planning needs to account for inflation, investment returns, taxes, changing expenses, longevity and other sources of income.
Why Starting Your Retirement Savings Early Matters
The moral of the retirement maths: before worrying about the millions you need, first look at your monthly salary and decide how much of it you can put towards buying your future freedom.
This is why retirement contributions are often deducted from your salary before you even get the money in your bank account.
We don’t wait until you are closer to 65. Compounding, however, requires time; delaying is scoring own goals.
How to Start Planning for Retirement in South Africa
Next time you hear the word retirement, don’t dismiss it or think it’s for old people. It’s for humans. Perhaps call it your freedom amount.
This maths is not for the aging. The better one controls their expenses, the fewer millions they require. Nothing wrong if you desire 20 million Rand.
For most people, it’s not necessary.
In our context, an employer pension or provident fund can be a good starting point if you have access to one, even a personal Retirement Annuity counts.
Over and above that, a Tax-Free Savings Account can be a useful tool for long-term investing, where you can hold diversified investments such as ETFs and unit trusts.
However, the right order of priorities depends on your own financial situation and goals.
I get it: inflation, lots of unknowns. Yes, most things in life are unknowns. If I knew the weather next week to the T, life then is too predictable and, frankly, boring.
However, it doesn’t hurt to carry my puffer jacket if I am visiting the Drakensberg mountains.
Retirement is a plan for life; without a plan, you live by chance. So your retirement number is not some mystical number in your financial planner rule book.
This number is buried in your lifestyle costs. This goes to show that we have direct control of our freedom number.
What we do today affects the bigger picture of our retirement.
Work out your number today.
It’s time to get that boring spreadsheet and create a budget. Apps work too, and AI comes in handy these days.
Work out your number and start buying back your time.
Written from Granny Mouse, KwaZulu-Natal – 22 August 2026
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