It doesn’t seem unreasonable to assume that people with a higher income manage to put more away for retirement, and therefore enjoy a higher income from retirement annuities than lower earners.

The Old Mutual SA Retirement Gauge 2022, an in-depth analysis of almost half a million South African employees saving into umbrella funds, had some interesting findings on this topic, however.

Watch this video to see Thabisile Simelane, a senior investment consultant at Old Mutual Corporate Consultants, explain:

• what usually happens to lifestyles when people earn more
• the relationship between higher earnings and income replacement in retirement (also known as Multiples of Annual Salary)
• things that lower income earners do that the analysis also found higher earners doing
• how the proposed two-pot system for retirement fund savings aims to help.

Plus, learn what’s happening to retirement age in South Africa.

For more insights, read or download the entire Retirement Gauge in pdf format here.