Everybody wants to retire as comfortably as possible. Even if it seems a long way off, it pays to start planning for retirement as early as possible. How much we need to save will depend on our own circumstances, but the sooner we start, the better the position we’ll be in when we eventually stop working.
While NZ Super (the government pension) can help us get by, it's safe to say, it's your KiwiSaver contribution that will help to make retirement fun and comfortable.
How much will I need to retire?
Everyone’s retirement needs are different. To work this out, we can start by thinking about how long we will have in retirement, what sort of lifestyle we will want, and where we will live.
How many years will I have in retirement?
There is no ‘retirement age’ in New Zealand. NZ Super is paid from age 65, but you don’t have to stop working to get it. These days, more and more people are working beyond 65 either full-time or part-time.
We’re living longer these days. On average, 80% of 65-year-old men can now expect to live until they're 90, and 65-year-old women until they're 94.
In the future, we'll probably live even longer. These figures are based on the latest Statistics New Zealand cohort life tables. Let’s say you plan to retire at 65, you need to save or have another plan to provide the income we want for 25 years or more, and make sure our money lasts as long as we do.
Why Stewart Group should plan your retirement?
It is never too early to start planning your retirement. For younger clients, retirement might be a little in the background, as we assist you with more immediate aims such as buying a home, paying off debt, managing your career and raising a family. But the fact that there are more pressing aims does not mean that retirement should be ignored completely, and we can show you how to manage your affairs so that what you do today also benefits you when you retire.
For clients closer to retirement age, we help you decide when and how to start to make the transition from working life to retirement. For some people this transition is a gradual process. For others it is more sudden. Either way, we help you ensure that you make the transition as comfortably and successfully as possible.