40% of people aged 65 and over have virtually NO other income besides NZ Super and another 20% only have that, and a little more* This is from the 2022 Review of Retirement Income Policy. We are also a fast-aging population, with the number of people aged 65 or older living in New Zealand likely to hit 1 million by 2028. Currently there are about 93,000 people aged 85 or older, and in just two years there will be more than 100,000.**
This all means that if you retire in your mid-sixties, you can expect to keep living for more than 20 years. Many choose to keep working, not just for financial reasons but because they enjoy what they do. But this may not always be possible due to health or family reasons.
Retirement is for enjoying time to yourself. To travel, visit friends and family, and to pursue hobbies. All this costs money of course and with inflation that’s not going to be easy.
To avoid a retirement with no money to do anything, the fastest way to build a retirement fund is through KiwiSaver of course, as it’s locked in, has Government contribution and employer contributions (if employed) and grows through compound interest.
Sadly, 41% of KiwiSaver members have a balance of less than $10,000* And worse still, females have lower KiwiSaver balances than men.
We highly recommend that you keep contributing into your KiwiSaver funds, and to be very conscious of making it the right fund. It is very easy to switch funds and find one that is more suitable to your retirement requirements, matches your level of aversion to risk and desired level of contributions.
National Capital has an online ‘health check’ that can help determine if your KiwiSaver is getting you to your desired retirement goals. As it’s free, we recommend that you click the link below to see how you are tracking. Their system can then automatically make recommendations on whether you should change funds or make adjustments.
National Capital also has a team that can help you through the process, if you wish to talk with someone reach out.
Click on www.nationalcapital.co.nz or email National Capital on support@nationalcapital.co.nz. It’s worth it!
** https://www.stats.govt.nz/news/one-million-people-aged-65-by-2028/
This article is reproduced with permission from National Capital Limited FSP771555. National Capital Limited – a licensed Financial Advice Provider, specialising in KiwiSaver research and advice - has supplied us with informative articles on the subject of KiwiSaver, for publishing on the Astute Mortgage website as well as for sharing with our clients. The article is of a general nature and does not constitute regulated financial advice for an individual client. It may not be relevant to individual circumstances. Nothing in this article is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this article. The views and opinions expressed in this article are those of National Capital Limited and not of Mortgage Express Limited or any of its directors, contractors, consultants, employees, staff, or financial advisers trading using the Mortgage Express brand. To the maximum extent permitted by law, Mortgage Express Limited and /or any of its directors, contractors, consultants, employees, staff, or financial advisers trading using the Mortgage Express brand disclaim any liability or responsibility to any person for any direct or indirect loss or damage that may result from any act or omission by any person in relation to, or in reliance on, the comments or information contained in this article.
