BinnaBurra

Could you retire five years earlier?

Start with a fictional household, aged 40 with R750,000 invested. Compare retiring at 65 with retiring at 60, then change the numbers to explore your own question. Illustrative assumptions, separate from your full financial plan.

Illustrative assumptions, not a forecast. Explore without an account; sign in only when you want to save.

Your starting point

Change the balance, contribution or alternative retirement age.

Whole number between 18 and 90.

Whole number between 19 and 100.

Number between 0 and 100000000.

Number between 0 and 1000000.

Planning assumptions and draw target

Whole number between 19 and 100.

Number between 1 and 1000000.

Number between -20 and 30.

Number between 0 and 20.

Number between 0.1 and 15.

Results update when you finish changing a field. You can also use Update comparison.

What changes with a different retirement age?

All amounts are in today’s rand, after the inflation assumption. Contributions rise with inflation to maintain their purchasing power.

Reference: retire at 65

Projected invested balance at retirement
R 4 126 728,75
Starting monthly draw at 4.0% a year, before tax
R 13 755,76
Monthly contributions from now to reach the draw target of R 25 000,00
R 13 754,80

Alternative: retire at 60

Projected invested balance at retirement
R 3 249 139,89
Starting monthly draw at 4.0% a year, before tax
R 10 830,47
Monthly contributions from now to reach the draw target of R 25 000,00
R 19 203,89
Assumptions and what this example leaves out

Growth uses the monthly equivalent of (1 + annual return) ÷ (1 + inflation). Contributions arrive at month-end. The target pot is annual draw target divided by your illustrative draw rate. The required monthly contribution is the level amount in today’s rand that would reach that pot.

The draw rate compares starting amounts; it does not establish a sustainable withdrawal rate or prove your money will last. This example does not model withdrawals after retirement, lifespan, market volatility, tax, account access restrictions, debt or other income. Returns are constant assumptions after fees, before tax. Values can fall. These are not South African tax calculations.

Use this to explore a question, then review important decisions with a qualified financial adviser. BinnaBurra provides estimates, not financial advice.

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