GEPF

How Is Retirement Sum Calculated

Drafting your retirement is one of the most critical financial attainments in life and being conscious of how your retirement sum is calculated can help to prepare for your retirement.

What Do We Mean By Retirement Sum?

Retirement sum is essentially the total amount of money that you will need to maintain the standard of living or the lifestyle you wish to live after retirement. Calculating the retirement sum includes your current income, expected living expenses, and your investment returns.

What Happens When A Member Retires With ten(10) Years Of Pensionable Service

The benefit structure for the payment benefit upon retirement is determined based on the total pensionable service without taking into account any service reduction resulting from partial withdrawals. However, the actual calculation of the amount of the benefit considers the impact of service reduction due to partial withdrawals.

If a member has been a part of the GEPF for a decade or more, but as a result of partial withdrawals, ends up with less than ten years of pensionable service they will be qualified for the standard benefit structure. This means that upon retirement, they will receive both a lump sum and a monthly pension.

How The Retirement Sum Is Been Calculated

Lump Sum Payment

from the Vested Pot: 6.72% of the final salary multiplied by the vested service
from the Saving Pot: 6.72% of the final salary multiplied by the savings service

Monthly Payment

a monthly pension from the vested pot:(1/55) times the final salary times the vested service , plus R360 per year
a monthly pension from the retirement pot(1/55) times the final salary times the retirement service

Client Centre

GEPF Administration Office

Building 2A, Trevenna Campus

Corner Meintjies and Francis

Baard Street

Sunnyside, Pretoria

For more details visit the official website for clarification as well as updates about the GEPF

Admin