What can I expect the market value of my pension fund to be when I’m 55?

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[READER QUESTION] 'I'm 44 & have contributed to a pension fund since July 2013 ... current market value is R1 176 541 (41% replacement ratio). What can I expect the market value of my pension fund to be when I’m 55?' crueinvest's Gareth Collier responds.

I am 44 and have contributed to my employer’s umbrella pension fund since July 2013. I have kept a spreadsheet of all my contributions over the years and on December 31 2022 the total was R913 229. The portfolio is invested under “wealth creation” although I do not have underlying funds with me now. The current market value is R1 176 541 and my replacement ratio is 41%.

While the employee contribution is always fully allocated to the member’s retirement savings there is usually a portion of the employer’s contribution that goes towards group risk premiums and the administration cost of running the fund. The second point is understanding the fees on your investment as there are typically three fees charged on an investment.

The third point is that of the underlying asset allocation of your investment as this would determine the expected growth of the investment over time.

 

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crueinvest My best guess. Assuming you don't spend it, the potential interest, gains in present low yield share enviro will be off-set by current real inflation and you will be lucky to retain current purchase power in the future assuming current gvt don't break, loot any more than usual.

crueinvest Avoided answering the question like a politician! Remember that financial advisors make money by selling policies/products NOT by selling financial advise.

crueinvest Ask God

crueinvest could have at least projected a zero interest scenario to give the reader a ballpark minimum figure ?

crueinvest Behind every successful person there's always a helper CowdenBNB is the person behind my success story she helped me earn R200,000. thanks for restoring my hope once again CowdenBNB

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