On average , members should contribute 17 % of their salary over 40 years ( from age 25 to 65 ) towards their retirement savings to achieve a 75 % replacement ratio , she said .
“ A 75 % ratio means that for every R1,000 earned before retirement , you are targeting to replace R750 as an income during your retirement . Personal circumstances will influence the target replacement ratio for each person . Therefore 75 % is used as an approximation for members on average ,” stressed Lange .
When deciding at what age to start saving for retirement , Lange noted that the later in life you start to save , the higher the contribution rate will need to be to achieve the goal of 75 %.