Do you know your number?

Some numbers you look at every day. Others… you try not to look at.

But what about the number that could cost you millions in retirement? Do you even know what it is?

Your Effective Annual Cost (EAC) tells you the total cost of your investment. And a small change in that number can mean a huge difference in your retirement lifestyle.

So, do you know your number? If you already invest with another provider, check your current EAC and then use the 10X calculator to see what you could be paying with 10X.

Calculate your EAC

What is EAC, and why does it matter?

Your EAC is your total cost of investing - a summary of all the fees and charges (management, admin, advice, hidden extras) that together reduce your retirement savings.

Even a 1% difference in fees can wipe out millions over 20 years.
Most investors don't know their EAC.
Knowing your EAC puts you back in control.

Based on R100 000 investment at 6% return over 40 years.

How your number shapes your retirement

Before Retirement

Still saving towards your dream retirement? Here's why EAC matters:

High fees eat into your investment growth every year
Even 1–2% more in costs can reduce your end balance by millions
Many investors don't realise the impact until it's too late
The lower your fees, the more potential for compound interest

After Retirement

Living your retirement dream? Here's why EAC matters:

Lower costs mean more potential for income from your savings
High EAC can force you to cut back on lifestyle spending
Controlling fees helps your money last longer
A small change in costs = years more financial security

EAC stories: The hidden 22% Fee

A prospective client came to us for a second opinion on their retirement annuity. One figure on their EAC disclosure leapt off the page:

22.1% charged under “Other” fees in the first year alone.
That pushed their total EAC to a staggering 26.3%.
Even over longer timeframes, fees stayed shockingly high - 8.5% over three years, 3.5% over five.

All of this was buried under “Other”, making it almost impossible for the investor to see the problem.

For context:

If you're paying more than 2% annually, your retirement savings are being eroded over time.
At 10X, our total EAC is typically around 1%.

	1 year	3 years	5 years	To Maturity (35y)
Investment Management	0.5%	0.5%	0.5%	0.5%
Advice	0.7%	0.7%	0.7%	0.2%
Administration	3%	3%	2.2%	1.8%
Other	22.1%	4.3%	0.1%	-0.1%
Effective Annual Cost	26.3%	8.5%	3.5%	2.4%

*Real world example of hidden fees in an investment

The hidden cost of invisible fees

As Andre explains: while you see your Woolies spend in your bank account, you don't see your investment fees deducted in the same way. They're invisible, but no less damaging.

Watch the episode to learn how to calculate your true investment cost, and why it could be the difference between retiring comfortably or not.

"Many South Africans don't understand what they're paying, often mistaking a 3% fee as insignificant — without converting that into a rand amount."
— Andre Tuck, Investment Consultant Lead

The uncomfortable truth about retirement in South Africa - Rands and Sense by 10X [video]

We sit down with 10X Investment Consultant lead Andre Tuck and discuss the retirement savings crisis in South Africa. We also delve into living annuities, retirement annuities, TFSAs and everything in between. Watch now

Want to dig deeper into fees and performance?

Understanding your EAC is just the beginning. These articles expose how fees compound over time, why benchmark comparisons matter, and what questions you should be asking your provider.