How Much Is Retirement Payout

How Much Is Retirement Payout

Arranging for your retirement is a very vital financial achievement, but a lot of individuals ponder how much they will receive once they go on retirement. The answer to it can be very difficult when it comes to such a question but it depends on your pension, social security, personal savings, and how much you have invested or your investment choices. Understanding these sources of retirement income and how they contribute to your retirement payout is essential to you as an employee going on retirement.

How Does The Two-Pot System Work?

The two-pot system gives members access to some of their savings for urgent purposes or needs, protecting a steady and reliable income after retirement. It’s the approach that carefully balances the need for long-term retirement security with the ability to meet immediate financial challenges.

READ ALSO: How can I check how much money I have in my pension?

What Is Paid Out When You Retire

Retiring, a member will receive a combination of a gratuity lump sum and a pension, similar to the existing retirement benefits. The lump sum payments are calculated as follows:

• From the Vested Pot: 6.72% of the final salary multiplied by the Vested Service
• From the Savings Pot; 6.72% of the final salary multiplied by the Saving Service

Additionally to the lump sums, the member will also receive a monthly pension, which is calculated as follows:

• A monthly pension from the Vested Pot(1/55) times the final salary times the vested service, plus R360 per
• A monthly pension from the Retirement Pot:(1/55) times the final salary times the retirement service

What The Government Employee Pension Fund Invests In

Below are the four classes the GEPF invests in

• Equities
• Fixed income
• Properties and
• Isibaya Funds

Contact Details

For more details, you can contact the GEPF at:

Toll-free number: 08 00 117 669

Fax; 012 326 2507

Email: enquiries@gepf.co.za

Postal Address

GEPF Private Bag X63,

Pretoria

0001

If you have any issues do not forget to contact a representative to help you and also visit the official website for more information.