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Are you looking out for the ‘future you’?


The new NZ Super rates are in: are they enough to pay for the retirement you’re envisioning? If your time to retire is peeking around the corner, you might like some extra help to set up a sound retirement plan for your dream lifestyle.

On the other hand, if you’re younger, your ‘golden years’ may seem far away, but it’s never too early to start your retirement planning – as with any investment, starting early is likely to pay off in the long run. 

Here is some good food for thought on your way to setting up a healthy retirement fund.

NZ Super alone may not be enough

As of 1 April 2021, the NZ Super rate for a single individual is $437 per week (after tax), and $672 for a couple (if both partners qualify). While this is a helpful replacement for your income post-retirement, it’s unlikely to be enough for a comfortable lifestyle.

Also, according to the latest New Zealand Retirement Expenditure Guidelines, the average weekly expenditures show that NZ Super might not be enough even for a modest, no-frills lifestyle in a provincial area.

So, what’s next?

Thinking about your aspirations

When getting started with any planning, it’s a good idea to think about your aspirations, your end goals. They can be a guiding light on your journey to retirement, and help you keep in mind what’s important to you when you’re ready to retire. For example, starter-questions for your planning may be:

  • What would you like your retirement to look like?
  • Do you have any grand plans – like travel or exploration – or would you rather kick back and enjoy just being with your family more?
  • What financial tools do you have in place?
  • When do you expect or desire to retire?
  • How much income would you like once you retire?

By answering key questions like these, you can have a clearer idea of your end goals, and then plan accordingly. If you’d like some help, get in touch – as advisers, we can help you set up a realistic plan for your retirement needs and goals. 

Taking time out to plan for the future

Looking at the gaps between what you may need for your retirement, and how much you’re currently saving, now can be as good a time as any to start planning for the future. The journey of life is unpredictable, so it helps to expect the speed bumps and detours.

New Zealand is consistently seeing rising living costs and longer lifespans, for example. These are just some of the important things to consider when planning out the rest of your life. No matter where you’re at currently, whether closer to retirement or comfortably far from it, it’s always a good idea to take time out to plan for your future. 

With a plan in place, your retirement years can be everything you hope for – a time of relaxation, rejuvenation or adventure, and above anything else, valuable time to focus on the things that matter most to you and your family.

Are you on track?

This may be an important question to ask yourself from time to time. Try to clearly define the level of income you’d need in retirement. With that ballpark figure in mind, you can work out how much you may need on top of NZ Super and (if you have one) your KiwiSaver fund.

As always, we are here to help you plan for the ‘future you’, by assessing your present and future goals and providing you with strategic, comprehensive advice.

Looking for quality advice?

Retirement planning can be complicated in more ways than one. Factors and assumptions are constantly changing, keeping your retirement planning dynamic. 

We can provide you expert guidance and advice throughout the journey, at the start, or after this momentous transition. So, if you have any questions, big or small, remember – we are here to help, always. Get in touch today. 

 

 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

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