Assumptions & how this works

• What you get: an estimate of the lump sum capital needed at your retirement date - not a monthly insurance premium or debit-order savings amount. It answers: “How big must my pot be when I retire?”
• Your monthly income (after tax) today is increased each year by your assumed inflation rate until retirement, to reflect the income you would need in the first year of retirement in future money.
• That future income is grossed up using your average tax rate in retirement so that after tax you still have the target spending power (simplified flat rate - not full SARS brackets).
• Required capital uses the present value of a growing annuity: withdrawals rise with inflation each year during retirement, while the balance is assumed to earn your investment growth rate. Growth must be above inflation or the maths does not converge.
• Life expectancy sets how many years that income must last. Longer life = more capital required.
• The first-year gross withdrawal (shown after you calculate) is an annual figure for transparency - not a product quote or advice fee.
• Illustration only. Past performance is not indicative of future results. For personal advice, speak to a qualified financial adviser (AS Brokers FSP 17273).