Latest news with #R230
Daily Maverick
5 days ago
- Business
- Daily Maverick
The Financial Wellness Coach: How to calculate your retirement savings capital
The amount of retirement capital that you need depends on how much you will require to live on every month. Question: My friends tell me I need R30-million in order to retire. My savings are nowhere near that. Am I in trouble? Answer: The amount of money that you need in order to retire will depend on how much you need to live on when you have retired. I do a lot of retirement counselling with individuals approaching retirement, and determining how much they need to live on is always the first step in the planning process. I've found that this amount can vary dramatically – from as little as R8,000 to as much as R230,000 per month. Depending on how much you need in a month, the amount of retirement capital that you need will vary. If you need an after-tax income of R100,000 a month, you will need about R32-million in savings. I suspect that this is where the R30-million story comes in. However, I find that most retired people I help need an after-tax income of between R30,000 and R50,000 a month. I will go through the factors you need to consider when working out how much you will need in order to retire. Monthly retirement budget The first step in working out how much you need when you retire is to get an idea of how much you need to live on each month. I would recommend that you draw up a budget based on what you are spending now, and then amend it to reflect the type of spending pattern you may have when you retire. For example, your parking and lunchtime costs will probably reduce and your medical costs will increase. If you need help here, I have a retirement budget spreadsheet that I can email to you. Tax Once you have figured out how much you need, increase that amount to account for income tax. Drawdown rate and investment strategy You need to ensure that you will have enough money to live on until you, your spouse and any dependants pass away. As one in 10 of us is likely to live to 100, you need to plan on having enough capital for the next 35 years when you retire. What's more, this capital needs to be invested in such a way that it can withstand all the economic and political challenges that you are going to experience over the next 35 years. For someone who is retiring at the age of 65, just think back to what the world was like when you were 30 and all the political and economic challenges you had to deal with. When you retire, you will have a similar set of challenges, but will only have your retirement capital to depend on. There will be no promotions or performance bonuses to help you. It is therefore vital that you get the right investment strategy in place. The recommended drawdown rate for a 65-year-old is 5%. The thinking here is that the typical costs of a living annuity come to about 2.5%, so as long as your investments are growing by more than 7.5%, your pension will increase each year and be sustainable for the rest of your life. In order to work out how much capital you will need in order to retire, you would do the following: Calculate your monthly expenses when you retire; Work out what tax you'll be paying when you retire and increase those expenses by the tax rate; and Divide that number by 5%. This will give you the capital needed to provide you with a sustainable income when you retire. Some examples can be found in the table below. What I've shown you is a rough guide for how to calculate your retirement needs. I would strongly recommend that you speak to a financial adviser who is experienced in retirement planning. They will have access to software that will help you structure your retirement income in the most tax-efficient way and be able to model your investments to ensure you get the right level of returns without risking your capital. DM Kenny Meiring is an independent financial adviser. Contact him on 082 856 0348 or at Send your questions to [email protected] This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
The Citizen
27-05-2025
- Business
- The Citizen
Here's how many millions SA sends to Lesotho each month for water
Meanwhile, Lesotho has a pretty hefty VAT bill. South Africa pays approximately R230 million monthly in royalties to Lesotho for water from the Lesotho Highlands Water Project, while Lesotho owes R513 million in outstanding value-added tax (VAT) refunds as of February 2024. These monthly payments drop to around R120 million during periods when water delivery is disrupted. According to a briefing on Tuesday by the Department of Water and Sanitation to the portfolio committee on Water and Sanitation, the royalty structure operates on a 56-44% split favouring Lesotho. Teboho Nkhahle, South African Chief Delegate to the Lesotho Highlands Water Commission, confirmed South Africa 'started paying the revised royalties in January 2024' following recalculations using updated methodologies. 'We are currently paying around R230 million a month. But in the last six months, because there was no water being delivered and no electricity being generated, we're paying around R120 million a month.' The current treaty includes a 12-year review cycle for royalty rates. Committee members called for external auditing by the Auditor General of South Africa to provide more rigorous oversight. South Africa's Water and Sanitation Deputy Minister David Mahlobo indicated willingness to explore such arrangements, stating: 'We will mandate our teams that we should find modalities… that are more credible on ensuring that even that institution is on the other side.' The R513 million VAT debt represents outstanding VAT refunds that Lesotho owes to South Africa. Nkhahle confirmed that diplomatic efforts are underway to resolve these financial obligations. Lesotho Highlands Water Project costs escalate to R53.3 billion The second phase of the Lesotho Highlands Water Project will deliver an additional 490 million cubic meters of water annually to South Africa, supplementing 780 million cubic meters from Phase One. The water primarily serves Gauteng province. The project operates under the 1986 treaty between South Africa and Lesotho, with oversight from the Lesotho Highlands Water Commission, comprising six commissioners from each country. Mahlobo confirmed that the project remains on track for commissioning by 2029, despite recent setbacks, including contractor suspensions due to negligence and concerns over pollution. 'The project is proceeding,' Mahlobo stated, emphasising that different work packages continue simultaneously even when specific components face delays. The project's budget has escalated significantly from its original estimates, with current projections at R53.3 billion. Originally estimated to cost R42.06 billion, the project escalated to R53.3 billion. Mahlobo reaffirmed that water delivery is expected by August 2028, with completion scheduled for September 2028. Construction progress has reached 77% for major components. Nkahle explained that the R53.3 billion long-term cost plan already includes R6.2 billion in contingencies. 'This escalation and contingencies [are ]already built into this long-term cost plan, and also furthermore, each contract also has built in contingency,' Nkhahle said. ALSO READ: Completion date for R53 billion Lesotho Highlands Water Project postponed again Lesotho Highlands Water Project financial structure Committee members expressed concern about the impact on water tariffs and the need for transparency in cost management. 'All of us who are very worried, very worried around the issues of cost escalation, some of the cost escalation is because of the issues of contingencies,' Mahlobo acknowledged during the briefing. South Africa bears all cost-related payments through the Trans-Caledon Tunnel Authority (TCTA), which borrows from markets and recovers costs through water tariffs. Water tariffs have been negotiated with end users, such as Randwater, 'over CPI' to account for escalating costs. The funding strategy incorporates long-term loans to prevent sharp tariff increases. Additionally, 33% of project costs are allocated to acid mine drainage treatment, a decision made to protect the quality of water being transferred from Lesotho. Percy Sechemane, TCTA CEO, confirmed the funding arrangements where South Africa receives 'the enduring benefit of water transfer.' ALSO READ: Full Vaal Dam to the rescue as Lesotho Highlands Water Project takes bad turn Contractor suspension and pollution issues A major contractor was temporarily suspended due to negligence, specifically related to pollution in the construction area. The suspension was triggered by environmental concerns affecting water quality in the Katse Dam reservoir. 'The contractor was indeed actually suspended. That's the report we got,' Mahlobo confirmed, adding that the minister had to intervene after the matter became public through media reports. Nkhahle confirmed that 'that suspension has been lifted and the 1,300 workers who were temporarily laid off resumed work this morning.' The engineer accepted interim measures implemented by contractors, along with a comprehensive remedial plan to address environmental concerns. Nkhahle clarified that the pollution was 'localised and insignificant due to the size of the effluent that was running into the reservoir in relation to the total volume of the reservoir.' However, he noted it was significant from a construction monitoring perspective. ALSO READ: Gauteng residents warned to brace for major water disruptions this week Treaty review and financial management The current treaty includes a 12-year review cycle for royalty rates, but committee members questioned why reviews don't occur annually to match maintenance and operational cost variations. Percy Sechemane, CEO of the TCTA, explained that the lengthy review period provides stability for funders. 'The treaty itself is an instrument that a lot of thought went into from both South Africa and Lesotho,' he said, noting that frequent changes would make financiers uncomfortable about their investments. Sechemane also confirmed that water tariffs have already been negotiated with end users like Randwater to account for the escalated costs, with increases 'over CPI on the South African side so that we can close that gap.' Lesotho Highlands young professionals' programme The Lesotho Highlands Development Authority's Young Professionals Programme currently has 60 graduates. However, only five are from South Africa despite 39 being offered opportunities. According to project officials, South African graduates declined participation due to low stipends and challenging working conditions in the mountains. NOW READ: Municipal water crisis 'nothing to do with bulk water supply', says minster at LHWP reopening
IOL News
20-05-2025
- Sport
- IOL News
Joy for Mzansi, pain for Morocco as South Africa's young guns crowned kings of Africa – you tell us on social medial what is exciting
South Africans woke up to the news yesterday that the country was continuing to shine on the sports stage after Amajita had won their first U20 Afcon title on Sunday. Deliriously happy and proud fans took to X: restore all settings to the default values Reset restore all settings to the default values Done Beginning of dialog window. Escape will cancel and close the window. Seek to live, currently behind live @RoryPetzerCHAMPIONS! What a beautiful morning to wake up as a SOUTH AFRICAN! Congratulations AMAJITA! @Hybreed_SA NO DNA, JUST RSA!!! @khayakoko88 It's taken 28 years, but we're finally back where we belong... At the top Africa. Well done to coach Raymond Mdaka and his Amajita team. Champions. @LedwabaRonald History has rewritten itself. The Lighting has struck twice at the same place. Thank you Amajita. We own Morocco. @XoliswaZondo Every Amajita player will receive a cellphone from Honor when they land in South Africa on Tuesday The technical team will also be gifted! To the value of R230 000.00. @ThabisoMosia Thank you, Mbazo, for also acknowledging assistant Coach Karabo Mogudi. The man has paid his dues. Our future is also bright when it comes to coaching.... @amakhosi4live PUT IT IN THE LOUVRE! We're CHAMPIONS OF AFRICA! @bakzy_sa I promise you nobody has frustrated Morocco like South Africa has recently. ■ 2022 – Banyana Banyana win Wafcon beating Morocco ■ 2024 – Bafana Bafana eliminates Morocco from Afcon ■ 2025 – Amajita wins the Afcon beating Morocco DAILY NEWS
IOL News
12-05-2025
- Business
- IOL News
Is Joburg giving electricity users a break or just playing politics?
Prepaid electricity is, by design, a pay-as-you-use model. Adding a monthly fixed fee defeats its purpose. Should residents really be penalised with a R200 surcharge just for access, especially when conventional meter users are charged differently, asks the writer. The City of Johannesburg's recently released draft budget for 2025/26 claims to bring stability and relief for electricity users. But the numbers and narratives don't add up beneath the surface, and residents have every right to be sceptical. At the centre of the confusion is the controversial prepaid surcharge. Officially introduced last year amid public outcry, it deducted around R230 from residents' monthly recharges before they even saw a single unit of electricity. Many were blindsided. This year, the city says it won't increase this charge, but is that really good news? The draft budget proposes 'unchanged' service charges: R70 for residential prepaid (High) users and a R200 network capacity charge. But here's the catch: the current network capacity charge is R130, not R200. This glaring discrepancy would mean a real increase if left uncorrected. Thankfully, City Power clarified that the total fixed charge remains R200, split between R70 and R130. Yet the fact that this error made it into the official draft raises questions about the competence or intentions behind the proposal. Are these errors just sloppy accounting or deliberate obfuscation? How many residents would have noticed without public scrutiny?
IOL News
07-05-2025
- Business
- IOL News
eThekwini's R5,9 million Grant-in-Aid funding for community development under scrutiny
The eThekwini Municipality Grant-in-Aid (GIA) programme is expected to cost an estimated R5,9 million. Image: Independent Newspapers Archives The Grant-in-Aid (GIA) programme is expected to cost the eThekwini Municipality an estimated R5,9 million through workshops and a disbursement event. The GIA programme is divided into two categories, a capacity building workshop and the handover of the grants to the applicants. The matter was brought to the eThekwini Executive Committee on Tuesday for discussion. In the report tabled by the Governance and Human Resources Committee, the GIA capacity building workshops for six regions in eThekwini will cost R230,000 of which R140,000 is allocated for catering and R72,000 for sound hire. The committee stated that the purpose of the workshops is to impart knowledge and skills to organisations so that they can be able to access GIA and other sources of funding. The committee stated that the workshops will enhance the Non-Profit Organisations (NPOs) and Non-Profit Companies (NPC) financial and narrative reporting skills for them to meet the policy requirements. The workshops target new organisations, beneficiary organisations and councillors and traditional leaders. The municipality will disburse R5,5 million to 111 GIA applicants. In total, 508 applications were received. The municipality is expected to spend a further R208,000 to cover the logistical arrangements pertaining to the event. A breakdown of the additional amount includes R80,000 for catering, R43,000 on marquee hire, decor R15,000 and entertainment R20,000. According to the committee the beneficiaries include; Early Childhood Development; Social Welfare; Sports Arts and Culture; Economic Development; Skills Development; and Faith-Based Organisations involved in community development work The committee stated that the panel followed the principle that all applications must be considered equally but placed special emphasis on rural and mostneedy communities. In this programme, the importance of reporting on how the organisation has utilised municipal funds will be emphasised and reiterated. Thabani Mthethwa, the DA's eThekwini Caucus Leader, said although the grant in aid was a good deed, the spending on hiring tents raised questions, adding that he had previously raised the issue in 2024. Mthethwa urged the city to use community halls and questioned the need to procure décor for the venues. Ethekwini Mayor Cyril Xaba said, 'I thought the principle is that we should try to use our own facilities as far as possible. Only when those facilities are not adequate we must use alternative measures," Xaba said. Nkosenhle Madlala, ANC councillor and chairperson of the governance committee, said they have cut costs where they could. He said halls were subject to availability and this required the hire of marquees when they were not available. 'It does not necessarily mean what is approved here is spent. It is an anticipatory budget and there could be savings in certain areas. Every effort was made to spare the city resources and the overall costs are within limits. We host this event because of transparency,' Madlala said. Madlala stated that this will also be a platform where different organisations can network, share ideas and collaborate among themselves. The eThekwini municipality Audit Risk Committee (ARC) report for the second quarter ended 30 December 2024 presented to Exco, on Tuesday, also expressed concerns about the grant-in-aid. Siboniso Shabalala, Chairperson of the ARC stated that the Committee recommends the resolution of the non-compliance with the Grants in Aid policy requirements which were identified, as it suggests a lack of enforcement and adherence to the requirements set forth in the policy. Furthermore, poor monitoring of beneficiaries was noted, which hinders the ability to assess the effectiveness of the grant and ensure that resources are being utilised appropriately. City Manager Musa Mbhele said the policy has been circulated to internal and external stakeholders for comments. The comments will be reviewed by June 2025 and accordingly included in the draft policy during the finalisation stage of the policy where appropriate. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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