Multiples of annual salary is a tried-and-tested measure used by retirement specialist. It shows how much of a fund member’s salary they will manage to replace once they retire, based on what they contribute towards their retirement fund savings.
In mid-2022, Old Mutual Corporate Consultants did an in-depth analysis of the savings habits and retirement readiness of almost half a million South African employees who belong to umbrella funds through their employer's pension funds.
The result – the Old Mutual SA Retirement Gauge 2022 – had some valuable insights when it comes to how much of their income these retirement savers manage to replace beyond that day when they call it a day at work.
Watch this video to see Thabisile Simelane, a senior investment consultant at Old Mutual Corporate Consultants, unpack:
- what multiple of annual salary pension fund members manage to achieve at retirement
- what the outlook is for provident fund members
- if there’s any value in staying invested in one fund for the majority of your career, and
- how to calculate your multiple of annual salary yourself.
For more insights, read or download the entire Retirement Gauge in pdf format here.