Pension Projection Calculator
A large retirement fund value only matters if you understand the income it produces. This calculator applies a safe annual drawdown rate to your projected capital to estimate the gross monthly income you could sustainably draw from a living annuity in retirement.
Pension Projection Calculator
Turn a projected retirement fund value into an estimated monthly income.
This is your total fund value at retirement — use the Future Value calculator to estimate it.
A 4%–5% drawdown is widely considered sustainable for a living annuity over a long retirement. Higher rates risk depleting capital.
Income across the drawdown band
| Drawdown | Monthly income |
|---|---|
| 4.0% | R 10 000 |
| 4.5% | R 11 250 |
| 5.0% | R 12 500 |
| 5.5% | R 13 750 |
| 6.0% | R 15 000 |
Estimated monthly retirement income
R 11 250
before tax, at a 4.5% drawdown
- Projected capital
- R 3 000 000
- Annual drawdown rate
- 4.5%
- Gross annual income
- R 135 000
- Gross monthly income
- R 11 250
Assumptions: Income is shown before income tax and before annuity platform fees. A living annuity's capital and income vary with market returns; a guaranteed life annuity works differently. Speak to a registered adviser before choosing an annuity.
What is a safe drawdown rate?
A drawdown rate is the percentage of your capital you withdraw as income each year. Draw too much and you risk depleting your capital while you are still alive; draw too little and you may live more frugally than necessary. For a long South African retirement, many advisers regard an initial drawdown of 4% to 5% as sustainable, rising cautiously over time. The table in the calculator lets you compare income across the full 4%–6% band at a glance.
Living annuity vs guaranteed annuity
This tool models a living annuity, where your capital stays invested and you choose the drawdown rate within legislated limits. The trade-off is flexibility and inheritability against the risk that poor markets or over-drawing erode your income. A guaranteed (life) annuity instead pays a fixed income for life from an insurer — removing market and longevity risk but typically forfeiting the capital. Most retirees use a blend.
Build a complete picture
- Don't know your retirement capital yet? Estimate it with the future value calculator.
- Understand how early withdrawals shrink this capital in the retirement impact calculator.
- Review how different fund types are treated in our pension, provident & RA guide.
Income is shown before income tax and platform fees. Drawdown sustainability depends on investment returns and longevity. Estimates only — not financial advice.
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