i What this calculator does
Quick answer: Build a target allocation from your age, horizon and risk tolerance, with Regulation 28 limits applied where they matter. With the default inputs (your age 38, years until you need the money 22), it returns equity of 72%.
Asset allocation is the largest single driver of how a portfolio behaves. The split between equities, bonds and cash explains far more of the outcome over time than the choice of individual holdings within each bucket.
This builds a starting allocation from horizon and risk tolerance, then splits the equity portion between local and offshore. If the money sits in a retirement fund, Regulation 28 caps offshore at 45% and equities at 75%, and the calculator applies those.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
How to use the Asset Allocation Calculator
The form arrives filled in. Replacing one value at a time is the clearest way to see what the output depends on.
- 1. Your Age
- 2. Years Until You Need the Money
- 3. Risk Tolerance
- 4. Amount to Allocate (R)
- 5. Where the Money Sits
The result panel reports:
- ' + h.label + '
Alongside the headline figures, the calculator reports local equity, offshore equity, defensive total, horizon. Those are the numbers that usually explain why the headline result came out where it did.
The method is visible: the steps sit directly below the result.
Common results
What the calculator returns as the your age changes, with every other input at its default (years until you need the money 22, risk tolerance Conservative, a fall would worry me, amount to allocate 500 000, where the money sits Discretionary or tax-free account).
| Your Age | Equity | Bonds | Cash |
|---|---|---|---|
| 10 | 72% | 20% | 8% |
| 20 | 72% | 20% | 8% |
| 40 | 72% | 20% | 8% |
| 100 | 72% | 20% | 8% |
| 200 | 72% | 20% | 8% |
| 400 | 72% | 20% | 8% |
Figures used in this calculator
The South African constants this calculator relies on, with the page that holds the current value and the date it was last verified.
- Regulation 28 limits: 75% equities, 45% offshore for retirement funds. Source: Retirement Fund Contribution Limits (verified 27 September 2026).
- Offshore allowances: R2 million SDA, R10 million FIA a calendar year. Source: Exchange Control Allowances (verified 27 September 2026).
How the calculation works
Five inputs drive the result: Your Age, Years Until You Need the Money, Risk Tolerance, Amount to Allocate and Where the Money Sits. The base equity is 40 + 22 x 2 + tolerance adjustment = 72%. The defensive is 100 - 72% = 28%, split 70/30 bonds and cash. The offshore split is 25% of the equity portion. The limits is No regulatory cap on a discretionary account. The breakdown also lists age, years to goal, risk tolerance and equity allocation.
A worked example in rand
Run it with the inputs it opens with, your age 38, years until you need the money 22, risk tolerance Conservative, a fall would worry me, amount to allocate R500 000 and where the money sits Discretionary or tax-free account, and the equity comes out at 72%, r360 000.00. The other figures are bonds 20% and cash 8%. Doubling the your age to 76 leaves the headline figures unchanged, which tells you that the result is set by the other inputs.
How to read the result
For the default case the verdict is: "An equity weight of 72% fits a 22 year horizon at this risk tolerance." Read it as a flag rather than advice: it tells you where the numbers sit relative to the usual rules of thumb. The test of an allocation is the worst year it would have produced, not the average; if that year would make you sell, the mix is wrong for you. Crypto Asset Regulation Reference explains the thinking behind these figures.
The South African angle
Using the asset allocation calculator from South Africa adds a few local facts to the arithmetic. A South African portfolio carries a large single-currency risk by default, because salary, home and pension are all in rand, which is the argument for an offshore allocation above what the age-based rules suggest. The JSE All Share is dominated by a handful of large companies and by resources, so a "diversified" local index tracker is far more concentrated than an S&P 500 tracker. South African government bonds yielded around 10% in 2026, high by global standards, which changes the bond allocation arithmetic compared with developed-market examples. The asset allocation calculator draws on the same figures, which are kept on the exchange control allowances reference and updated as they change.
Spotted an outdated figure? If a rate, limit or formula in this calculator no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
Frequently asked questions
Is the hundred-minus-age rule useful?
It is a starting point and nothing more. It ignores the horizon, the risk tolerance and whether the money is needed at retirement or thirty years after it. This calculator uses the horizon directly, because that is what actually determines how much volatility you can absorb.
How much offshore exposure should a South African hold?
There is no single answer, and it depends on where your liabilities are. Someone retiring in South Africa with rand expenses needs rand assets; someone planning to emigrate or with children abroad needs more offshore. Inside a retirement fund the cap is 45% regardless.
Does Regulation 28 apply to my tax-free savings account?
No. It applies to retirement funds: pension, provident, preservation funds and retirement annuities. A tax-free savings account and an ordinary brokerage account have no such limits, which is why global exposure usually sits there.
Should the allocation change as I get older?
Gradually, as the horizon shortens rather than as a birthday passes. The relevant variable is how long the money has to recover from a fall, and that shortens every year whether or not you adjust for it.
What counts as defensive?
Bonds, income funds, money market and cash. With the repo rate at 7.25% the defensive portion currently earns a meaningful return, which is not always the case and changes the cost of holding it.
Where do property and commodities fit?
Usually inside the equity bucket, since listed property and resource shares behave more like equities than like bonds. Holding them as separate targets is reasonable if you want to control their weight explicitly.
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