Statistically we’re living much longer these days. So we all need to plan for our future and make sure we have enough money coming in to enjoy our life once we retire. From the age of 65 most New Zealand residents receive fortnightly payments of NZ Super. Additional retirement income above that needs to come from other means such as savings, paid work or business activity, or even the equity within our home.
Many retired New Zealanders rely on this additional income which means investing money earlier in their working life so that it generates income through interest or dividend payments. Others put money away into savings so they can then dip into this nest egg when they need to. Either way this extra saving is something that needs to be planned out to ensure it is in place for retirement.
So how much will I need to retire?
It’s hard to pinpoint how much you need for retirement as everyone’s needs are different, but a good place to start is by thinking about how long you will have in retirement, what sort of lifestyle you will want, and where you will live. Depending on these factors will depend on how much you will need to live comfortably.
Some questions to ask yourself before you retire:
- What are my goals before I retire?
- Will my children be financially independent?
- Will I be debt free when I retire?
- Will I own my own house?
- Will I need medical insurance?
These questions can help you think about the future and set out goals to make retirement achievable.
When should I start planning for my retirement?
No matter how young or old you are planning for your retirement is something that should be started early. Don’t be fooled into thinking that it should happen once you hit 40 the earlier you set your goals, the better your future will be.
Why not talk to an educated financial adviser who can help you plan out what your future looks like with the assets you have. If you would like to talk to one of our advisers then please give us a call and we can put you in contact with the right person for your financial needs.
Or take a look at the retirement planner at sorted.org.nz HERE