Planning for retirement isn’t about guessing—it’s about preparing.
Whether you’re five years away or two decades out, a retirement calculator can help you figure out if you’re on track. But the results you get are only as accurate as the information you enter.
To get meaningful insights, you need to ask the right questions—and answer them honestly.
Top 10 Questions: Using a Retirement Calculator
1. At what age do I plan to retire?
Your retirement age matters more than most people realise. The earlier you stop working, the more years your money needs to last. If you retire later, you’ll have more time to save and invest. Even a 2–3 year difference can have a major impact on your results.
2. How long do I expect to live?
It’s a personal and sometimes uncomfortable question, but one that’s essential to answer. Most people plan for a lifespan of 90–95 years. It’s better to overestimate and be safe than underestimate and run out of funds.
3. How much will I need each month in retirement?
The general guideline is 70–80% of your current income, but this can vary depending on your personal situation.
Consider:
- Will your home be paid off?
- Do you plan to travel often?
- What will your medical expenses look like?
- Will you be supporting children or others?
Try to estimate your monthly living expenses in today’s terms and let the calculator adjust for inflation.
4. What are my current retirement savings and investments?
List all your current assets related to retirement. These could include:
- Employer-based funds (Pension and Provident Funds)
- Retirement Annuities (RAs)
- Preservation Funds (transferred from previous employers)
- Discretionary investments (unit trusts, ETFs, shares)
- Cash savings or fixed deposits
- Any offshore or foreign-denominated accounts
The more accurate this picture, the better your plan will reflect reality.
5. How much am I contributing toward retirement right now?
Your monthly or annual contributions are a key part of the puzzle. Be sure to include:
- Employer contributions
- Your own contributions to RAs or investment accounts
- Any top-ups or lump sum investments
Most calculators let you test scenarios—see how increasing contributions by even 5–10% affects the outcome.
6. What investment return should I assume?
Don’t rely on best-case scenarios. Use long-term, inflation-adjusted averages based on your risk profile:
- Conservative: 4–6%
- Balanced: 6–8%
- Aggressive: 8–12%
Too much optimism here can mislead you. Conservative to Balanced assumptions keep you better protected, if that is a concern.
These aren’t guarantees—returns will vary, especially in retirement.
Most calculators let you test different scenarios. Depending on your return assumptions, you might need to draw anywhere from 2.5% to 17.5% of your capital each year.
The lower the return, the higher the drawdown required to meet your needs—often at the cost of long-term sustainability.
7. How will inflation affect my retirement income needs?
Inflation erodes your buying power over time, so it’s critical to factor it in. Most calculators let you assume an average inflation rate—4–6% is a common range. This helps ensure your future lifestyle isn’t compromised by rising costs.
8. What other income sources will I have in retirement?
Your investments may not be your only source of income. Include:
- Rental or passive income
- Government pensions (GEPF)
- Annuities or guaranteed products
- Consulting or part-time work
- Possible inheritance
The more sources you have, the less pressure on your portfolio.
9. What kind of retirement lifestyle am I planning for?
Be specific. Your desired lifestyle determines your financial needs. Think about:
- Will you downsize or stay in your current home?
- How often do you plan to travel?
- Will you support family financially?
- What hobbies or new expenses might you take on?
Your lifestyle goals should shape your monthly income targets—not the other way around.
10. What if things don’t go according to plan?
The best calculators allow for scenario planning. Make sure you can test:
- What happens if investment returns are lower than expected?
- What if inflation is higher than average?
- What if you live longer than planned?
Stress-testing your assumptions helps build a more flexible and resilient plan.
Final thoughts
A retirement calculator is only a tool—but it becomes powerful when used with intention and accuracy.
The better your inputs, the more useful the output. Use these questions to guide your process, and if needed, speak to a qualified financial planner to help fill in the gaps.
The goal isn’t to be perfect—it’s to be prepared.
