Retirement income decision planner
Secure what matters.
Keep flexibility with purpose.
Build a retirement-income structure around household expenses, tax, survivor needs and actual adviser quotations.
Core principleSecure essential income first, protect the household second, and use flexibility or legacy features only where they are affordable.
01
Build the picture
Start with the household and the capital.
Capital available for retirement income is what remains after the intended lump sum, estimated tax, debts and once-off costs.
02
Classify expenses
Separate necessities from spending that can adjust.
A shortfall against essentials is different from a shortfall against travel or hobbies. Enter monthly amounts after tax.
Monthly expenseEssentialImportant lifestyleTruly discretionary
Housing, rates and utilities
Food and household essentials
Medical scheme and healthcare
Essential transport
Essential insurance premiums
Financial-dependant support
Remaining debt repayments
Essential contingency
Travel and leisure
Gifts and family support
Lifestyle and hobbies
Other flexible spending
After the first death
Build both survivor budgets.
Costs rarely halve after one person dies. Adjust every monthly expense for each possible survivor instead of applying a fixed percentage.
Example inputs, not a ruleThe current total column comes directly from the expense classification above. The default survivor lines total R23,350 for each outcome, based on the supplied planning example. Replace them with the household's expected costs.
Monthly expenseCurrent totalIf client dies firstIf spouse dies first
Housing, rates and utilitiesCurrent totalR 8 500
Food and household essentialsCurrent totalR 5 000
Medical scheme and healthcareCurrent totalR 5 500
Essential transportCurrent totalR 2 500
Essential insurance premiumsCurrent totalR 1 000
Financial-dependant supportCurrent totalR 1 000
Remaining debt repaymentsCurrent totalR 0
Essential contingencyCurrent totalR 500
Travel and leisureCurrent totalR 3 500
Gifts and family supportCurrent totalR 1 500
Lifestyle and hobbiesCurrent totalR 2 000
Other flexible spendingCurrent totalR 1 000
Calculated monthly expensesR 32 000R 23 350R 23 350
03
Set the income floor
Convert net household needs into gross income and capital.
The calculator uses the current 2026/2027 SARS tax brackets and age-based rebates. Enter formal adviser quotations wherever possible.
Dependable household income already available
Adviser quotation
Price the selected guaranteed-annuity structure.
The default is illustrative. Replace it with a like-for-like CPI-linked single-life or joint-life quotation before making a decision. The next stage records the guarantee term and spouse continuation included in this rate.
10-year term · 100% spouse continuationThe exact selected combination is tested and documented in the next stage.
New guaranteed gross income needed after accounting for dependable income and estimated tax.
R 5 116 586 capital indicatedNew guaranteed gross income needed to target all entered household expenses.
R 7 238 447 capital indicated04
Select structure features
Protect the spouse for life. Protect a payment period separately.
A guaranteed payment term and second-life continuation solve different needs. They can be selected together, but neither is automatic advice.
1
Lifetime spouse income
How much income must continue?
Expenses if client dies firstR 23 350 pm
Net shortfall requiring supportR 23 350 pm
Planning indication71,6%Approximate continuation needed from the guaranteed income in the currently selected allocation. Tax and the formal quote may change it.
100% continuation supported if preference and quote impact are documented133% of the entered survivor budget is covered by the modelled continuing income.
2
Minimum payment period
Is a guaranteed term needed?
10-year term purpose and rationale recordedA guarantee term protects the remaining payment period. It does not provide spouse lifetime income or return the original capital.
Compare the income cost
Use formal, like-for-like quotations.
Changing the term or spouse continuation percentage can change the starting income. Do not interpolate insurer rates. Enter the actual comparison quotations.
Explain the payment sequence
Spouse first. Beneficiaries after the last surviving life.
The spouse-continuation income and beneficiary guarantee are not presented as simultaneous payments. The exact sequence, amount and recipients must be confirmed from the formal quotation and product terms.
05
Compare allocations
See four ways to balance certainty and flexibility.
Every option uses the same capital, expenses, tax basis, living drawdown and guaranteed-income quotation.
Guaranteed
R 0Living
R 7 700 000
R 22 926 net pmR 0Living
R 7 700 000
- Essential-expense coverage
- 95,5%
- Total-expense coverage
- 71,6%
- Cash after expenses
- -R 9 074
- Income certainty
- Lowest
- Capital flexibility
- Highest
All available capital stays invested. Income and capital remain exposed to markets and longevity.
Guaranteed
R 5 116 586Living
R 2 583 414
R 30 182 net pmR 5 116 586Living
R 2 583 414
- Essential-expense coverage
- 125,8%
- Total-expense coverage
- 94,3%
- Cash after expenses
- -R 1 818
- Income certainty
- Core needs
- Capital flexibility
- Moderate
Guaranteed income targets essential expenses. The balance stays invested for flexibility.
Guaranteed
R 7 200 000Living
R 500 000
R 33 009 net pmR 7 200 000Living
R 500 000
- Essential-expense coverage
- 137,5%
- Total-expense coverage
- 103,2%
- Cash after expenses
- R 1 009
- Income certainty
- Broader
- Capital flexibility
- Lower
More capital targets the full entered household budget, subject to the minimum living capital.
Guaranteed
R 7 700 000Living
R 0
R 33 688 net pmR 7 700 000Living
R 0
- Essential-expense coverage
- 140,4%
- Total-expense coverage
- 105,3%
- Cash after expenses
- R 1 688
- Income certainty
- Highest
- Capital flexibility
- Lowest
All available capital purchases dependable lifetime income under the quoted terms.
Guaranteed-annuity capital Living-annuity capital
The living-annuity income shown is the selected starting drawdown. Its sustainability is not tested here. Use the Monte Carlo planner for return-path and longevity risk.
06
Optional capital protection
Protect beneficiaries only after choosing the income structure.
Capital protection is a quoted product feature. It can create a defined beneficiary benefit, but normally reduces the guaranteed income rate.
07
Decide and review
The selected structure covers the essential-income floor.
This is a discussion outcome, not an automatic product recommendation.
Selected outcomeTotal-expense-target blendNo capital protection added.
R 39 827 taxable gross monthly, using current 2026/2027 brackets and age rebates.
R 31 859 dependable net income compared with R 24 000 essentials.
R 33 009 net income compared with the R 32 000 entered budget.
All entered expenses are covered at the starting point.
First-death test
Would dependable income cover the survivor's expenses?
The living-annuity drawdown is excluded from this dependable-income test. Client taxable income and spouse net income stop at their respective deaths unless a continuing survivor amount is entered. Other dependable non-taxable income is assumed to continue.
R 31 046 dependable net income versus R 23 350 expenses.
R 7 696 after expensesR 31 859 dependable net income versus R 23 350 expenses.
R 8 509 after expensesSelected guaranteed-income features
10-year guaranteed term · 100% spouse continuation
These are separate selections. The term addresses a minimum payment period, while the continuation percentage addresses the spouse's lifetime income need.
Adviser discussion guardrails
Essential-income-floor blendRevisit essentials, dependable income or the quotation if this fails.
Selected structure covers essentialsThe selected outcome should clearly disclose any essential shortfall.
Survivor expenses and continuation assessedReview the survivor budget, selected percentage and rationale, especially when 100% is selected.
Guarantee-term purpose and duration recordedA term needs a named beneficiary purpose and an appropriate duration.
Relevant comparative quotations completedCompare no term and relevant continuation alternatives using actual quotations.
Exact feature combination quotedConfirm the selected term, continuation, escalation and life basis on one formal quotation.
Death-event sequence explainedExplain the income recipient and amount under every relevant first-death and joint-death outcome.
Formal quotation is currentReplace the illustrative or expired quote before implementation.
Capital protection is affordable and completeEnter the actual protected rate and benefit, and preserve essential coverage.
The client should be able to explain:
What income reaches the household after estimated tax?Which expenses are secured by dependable income?Why the spouse-continuation percentage was selected?Why the guarantee term and duration were selected?What capital remains invested and flexible?Who receives income under each death event?What benefit may beneficiaries receive?Important: General financial education only. This calculator is not a quotation, tax opinion or personal recommendation. Guaranteed-annuity quotations depend on the lives covered, income increase, guarantee period, continuation terms, protection features, provider terms and market conditions. Capital protection is a quoted insurance feature and not retained annuity capital. The living-annuity drawdown is not guaranteed and sustainability is not modelled here. Tax uses current 2026/2027 individual brackets and age rebates, excludes medical tax credits and does not forecast future tax changes. Obtain formal like-for-like quotations and consider advice from an appropriately authorised financial adviser before making an irreversible annuity decision.