How much will you need?
A common rule of thumb is to aim for a retirement income of around 70% of your final salary. Your needs may be lower if your home is paid for, or higher if you support family members or expect medical costs.
Start by listing what you spend today and which costs will change after you stop working.
Check whether you are on track
Ask your fund for a projection of your benefit at retirement age. Compare it with the income you expect to need. If there is a gap, the earlier you act, the more options you have: contributing more, working longer, or adjusting your plans.
Ten years before you retire
- Request a benefit projection and review it every year.
- Find out your fund's normal retirement age and whether early or late retirement is possible.
- Plan to clear major debts before you retire.
In your final year of work
- Confirm your personal details, banking details and beneficiaries with the fund.
- Gather certified copies of your ID and other documents the fund will need.
- Ask how long payment takes, so you can plan for the first months.
Choosing how to take your benefit
Fund rules set out how your benefit can be paid: as a monthly pension, partly as a lump sum, or both. A lump sum gives flexibility, while a regular pension provides income for life. Each option has different tax treatment.
Speak to your fund's administrator or trustees, and consider independent financial advice, before you decide. The decision is usually difficult to reverse.