Growing Your Money
Contributions are added at the start of each year and grow for the full year. Set the monthly contribution to 0 for a pure lump-sum projection.
Living Off It (Retirement)
Year-one income is 4% of your pot, then rises with inflation each year to keep your buying power steady. The classic "4% rule" assumes this lasts ~30 years.
Pot at Retirement (25 yrs)
R4 978 014
Retirement Income
Money Lasts
34 years
Set for life
At this rate the pot runs dry — draw less or grow it longer.
Growth, Then Draw-Down
How It Works
Two halves of one plan
Every long-term investment has two phases. First you build up — a starting lump sum plus a monthly contribution, compounding at your growth rate for the years until you retire. Then you draw down — you stop contributing and start living off the pot, withdrawing a percentage each year that rises with inflation.
This calculator shows both on a single chart so you can see the green climb of accumulation, the moment you retire, and the orange curve of draw-down afterwards. Crucially, it tells you how many years your money lasts at your chosen withdrawal rate — the famous 4% rule is just the default starting point.
Want the full walk-through of the maths, the SA-specific inflation caveats, and how to stretch your pot further? Read How Long Will Your Money Last? The 4% Rule for South Africans. Before you invest a cent, also make sure you're maxing your Tax-Free Savings Account and keeping fees low — small percentages compound into fortunes, as the investment fee calculator makes brutally clear.
FAQ
Common questions
- What is the 4% rule?
- The 4% rule is a rule of thumb that says you can withdraw 4% of your retirement pot in your first year, then increase that Rand amount by inflation each year, and the money should last roughly 30 years. It's a starting point, not a guarantee — market returns and inflation change the outcome.
- What growth rate should I use?
- For a diversified equity-heavy portfolio, many South Africans model 9–11% nominal annual growth before retirement and a more conservative 6–8% during retirement, when the portfolio usually holds more bonds and cash. Always subtract fees and remember these are long-run averages, not yearly certainties.
- Why does my money last longer if growth beats the withdrawal rate?
- If your portfolio grows faster than the inflation-adjusted amount you withdraw, the pot can keep rising even while you spend from it. When growth is lower than what you draw, the balance shrinks each year and eventually runs out.
- Is this calculator specific to South Africa?
- Yes — it defaults to Rand and to SA-relevant assumptions like ~5% inflation, and it pairs with our TFSA and investment-fee calculators. The maths works for any currency, but the default growth and inflation figures reflect a South African investor.