South Africans comfortable to retire at 80

South Africans comfortable to retire at 80

While the official retirement age is 65, new research suggests that most South Africans will only be able to retire comfortably closer to 80.

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Sanlam's been analysing its 300 000 member database. 


The financial services provider says most people will need to work an additional 15 years to achieve financial security. 


The company's Nswa Shoniswa says delayed entry into permanent jobs, low savings rates and the rising cost of living - are just some of the contributing factors. 


He says there needs to be a coordinated effort from stakeholders to help people retire with dignity and not decades past their prime.


"Interventions at a much earlier stage - so people need to understand for example the tax benefits of increasing your retirement saving. There are tax incentives that the government has put in place. So your increase to retirement benefit savings makes an impact later. A lot of retirement funds allow for additional voluntary additional funds in your personal capacity over and above what you contribute." 


Meanwhile, SARS says close to two and a half million people have made withdrawals from their retirement savings. 


The revenue service says it's been inundated with applications from people who want to dip into their funds - since the launch of the two-pot system five months ago. 


Over 43-billion-rand's been paid out to date. 


SARS has meanwhile reminded pension fund members of the tax implications. 


Tax rates ranging from 18% to 45% would apply, according to their income bands. 


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