18/09/2026
2. Calculate the income you may need
One of the biggest mistakes people make when planning for retirement is looking at today's income and assuming they will need roughly the same amount in the future.
Inflation changes the picture.
For example, let's say you need R30,000 a month today to maintain your current lifestyle.
South Africa's headline inflation rate was 4.3% in July 2026, according to Statistics South Africa.
If we use 4.3% as a simple illustration and assume that rate continues for the next 30 years, the calculation looks very different:
R30,000 today → approximately R106,000 per month in 30 years.
That doesn't mean inflation will actually remain at 4.3% for the next 30 years. Inflation changes over time, and individual expenses can increase at different rates.
But the example illustrates something extremely important:
«R30,000 in 30 years will not buy what R30,000 buys today.»
This is why retirement planning needs to look beyond the amount you are saving. You need to consider future purchasing power, inflation, investment growth, your expected retirement age and how much income you may need throughout retirement.
And if you are planning to retire in 20, 25 or 30 years, the question isn't simply:
“How much money do I need to retire?”
A better question is:
“How much income will I need in the future to maintain the lifestyle I have today?”
That is where proper retirement planning becomes so important.
