Thinking about retirement may be daunting for a number of reasons. There are a lot of questions you may ask yourself such as will my savings last me through retirement? and am I on the right track? The simple answer is that the amount you need to retire depends on what you want your retirement to look like, Senior Client Relationship Manager, Harry Scott explains more below.
Taking control of your future and taking the time to plan now, will better prepare you for achieving your own retirement goals. While it's never too late to start or make changes to your approach, the earlier you start the better your chances of achieving the retirement lifestyle you deserve.
KiwiSaver plays a part
Your current age, your contribution rate and your investment strategy all play a part in what your KiwiSaver balance could look like when you retire. To make it easy our can help you develop a plan that is suitable for you.
KiwiSaver doesn’t have to end at 65. KiwiSaver is a flexible, cost-effective and tax-effective way to manage your money in retirement. While you can withdraw your savings from your KiwiSaver account at age 65, you can set up regular withdrawals to supplement any other income sources or consolidate other savings into your KiwiSaver account.
You may even want to continue making voluntary or lump sum contributions and benefit from potentially higher returns than having your money simply sitting in the bank. This is more relevant than ever in the current low interest rate environment, and with Kiwis living longer than ever in retirement, it is important to ensure your savings keep ahead of inflation and your spending power is not eroded. KiwiSaver provides you with a diversified investment solution to help achieve that.
How much money do you need to live in retirement?
At retirement there may be a big gap between what you may have been used to getting paid while working and what the government, will pay you as superannuation. If you don't have a savings plan you could end up having to rely on NZ Super alone and that may not be easy.
A married couple who both qualify for NZ Super will each receive $652 fortnightly or collectively about $33,900 per year.*
A single person, living alone who qualifies for NZ Super will receive $847 fortnightly or about $22,000 per year.*