‘I’m 65 years old with R2,000,000 retirement savings – how much can I get in retirement?’
Experts have explained how much a 65-year-old could expect to receive annually and why shopping around for the best deal has never been more important.
A 65-year-old male with a R2,000,000 pension can now get up to R20,000 per month from a guaranteed life annuity.
Retirees can get this guaranteed income for life through a single life level annuity, according to latest data from Just SA.
It must be noted that a level annuity offers the highest starting income option. But it is an option that will not increase year-on-year. Inflation will have an eroding effect on this income, so we would recommend that you select a lifetime income which offers increases over time. One example is a fixed escalation annuity, which has also been popular.
An annuity that increases 5% per year, for example, would currently give a 65-year-old male with R2,000,000 a starting income of up to R14,000 per month.
According to Just SA, guaranteed annuity incomes have provided peace of mind for retirees in turbulent times.
We know from research that retirees are prioritising security over flexibility these days, and the overarching benefits provided by a life annuity have contributed to a revival in a market that was once considered antiquated.
The increase in annuity values has also driven increased market interest, with retirement income market data showing further increases in sales in the post-Covid era.
2025 has been a bumpy year for investment markets and the current annuity rates fuel interest for those in retirement, looking to lock in an income for life.
Just SA stress the importance of shopping around and not just accepting the first quote offered.. Taking the time to look across the market could leave you thousands of Rands better off over the course of your retirement. And consulting a financial adviser is crucial to help you understand what the market can offer before making a final decision.
Just SA also note that retirees don’t need to annuitise their full pension all at once. Buying lifetime income in stages can provide greater flexibility and allows income to increase over time.
There are blended annuity options available to secure guaranteed income over time if your needs change as you age, or if you don’t need to fully guarantee your entire income. And, if you develop a qualifying condition, you can qualify for an increased starting income from a life annuity with Just SA.
Important note: Rates are as at 27 June 2025.
Expected starting incomes stated in this article do not take tax or advice fees into account. Your personal annuity rate will depend on the annuity option and associated increases, purchase sum, tax bracket, age, gender and any underlying health conditions.
A JustSA article written for You’ve Earned It/YEI
For further information, please see JustSA in the YEI Directory.
Enquiries: Please contact JustSA via the contact form on this page.
Warwick Wealth’s policy is to only deal with those over 50. Their staff are the same age and therefore understand your requirements. You will get a visit once a month or at least a phone call to discuss your life’s changes and or changes that need to be made specifically for you.
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