Monday, 30 May 2016

Only 7-months left until retirement

Most of us need to retire at a certain compulsory retirement age. 

At the North-West University, the compulsory retirement age for all employees is 65.  You have the choice to retire at the end of the month when you turn 65 or the end of that year that you turn 65.  Most of us choose the 31st of December to gain the last few months' pensionable income.  According to the latest tax legislation employees can have a maximum contribution to their pension funds (divided proportionally between the employee and the employer) which can be a maximum of 27.5% of your pensionable salary.  The increased employer-portion is indeed a "salary sacrifice" with your higher employee-portion to total the 27.5%.  There is a tax-advantage to this for the employees concerned.

Am I prepared for this new phase in my life?

How much money per month (as a living annuity) is enough to retire?