Retirement Planning - How Much Do I Need For Retirement NZ Based?
Even if you’ve never thought about retirement planning, the government KiwiSaver initiative is a way for you to actively save for it. So when considering how much do I need to retire in New Zealand, KiwiSaver is a big component. Click below to get your customised recommendations.
How much do I need to retire in New Zealand?
Retirement – will you be busy or bored? Are you thinking about how much do I need for retirement NZ based? Sometimes we can’t wait to be retired, but others we don’t want to think about it too much. Some may want to continue working well beyond the age of retirement.Â
We know you want concrete answers about how much do I need for retirement NZ based. So here’s a very simple retirement planning outlook:
Basics: $350,000 in savings beyond superannuation will cover a basic lifestyle when it comes to how much do I need for retirement NZ. With inflation in mind, this will surely rise, so having a good investment strategy is crucial.
Comfortable: $700,000 in savings in addition to superannuation enables a comfortable lifestyle beyond your working years, when considering how much do I need to retire in New Zealand.
Freedom: $1 million (+) in savings will give you the luxury to try out new hobbies (some could be expensive), travel, and worry less about finances once you’ve stopped working. That is the goal you should be aiming for when considering how much do I need for retirement NZ based.
Although ten to twenty years until retirement seems a long way away, these years give you a crucial opportunity to set yourself up for the future. Recently, research by National Capital has shown that three out of four Kiwis are unsure of how much money they will need to retire when the time comes. If you are one of those people wondering how much do I need for retirement NZ based, read this carefully.
How much do I need for retirement NZ when it comes to a KiwiSaver balance?
It makes sense that the sooner you start saving, the better it is for retirement planning. But you also want to know about KiwiSaver objectives and how much do I need for retirement NZ based. This differs for everyone. It depends on personal circumstances and factors such as your retirement time horizon, what sort of lifestyle you want, and where you will live.Â
We should also consider the fact that your costs will change throughout your retirement. For example, you may have a higher proportion of costs related to travel or housing in your early years of retirement, and as you get older, you may be spending a greater amount on healthcare.
If you are renting a home instead of living in your own home, you will need more savings to cover the cost of rent, but you also won’t have money tied up to a home. On the other hand, if you own the home you live in, mortgage-free, you don’t have to bear the risk of rent increases or being asked to find a new place. Downsizing is another option if you own your home and are wondering how much do I need to retire in New Zealand. You can sell your property, buy something smaller and cheaper, and use the remaining balance for retirement. Of course, this makes sense if there is a significant amount that can be earned by doing this. Therefore, the earlier you start thinking about retirement planning, the better. Â
You can start your Free KiwiSaver HealthCheck to figure out the answers to how much do I need for retirement NZ based. Our step-by-step system will guide you to a desired outcome for future retirement planning. Did we mention it’s all free and covered already via the scheme providers?
How do I plan for my retirement?
Retirement planning has to do with a lot more than just money. However, how you arrange your finances now will play a huge part in your eventual retirement looks like.
At National Capital, we want to help you answer how much do I need to retire in New Zealand, and then help set up your KiwiSaver account to achieve those goals.
To start the process, take our KiwiSaver HealthCheck and we will give you advice on what you need to do in order to retire well.
Are you ready to get your retirement sorted?
Debt-free retirement planning.
Paying off debt in retirement is more difficult, therefore, being debt and mortgage-free by retirement is a great goal. That is one of the first things to have in order before thinking about how much do I need for retirement NZ based. Many retirees are able to manage financially as they don’t have to make mortgage repayments. Moreover, by owning your own home, you are able to have more control over your finances.Â
Some downsides, however, are that you will have responsibilities such as taking care of maintenance, insurance, and rates. If you leave retirement planning until after you’ve paid off your mortgage, you have the risk of holding your mortgage for longer than you expect if there are potential changes in your circumstances. This may result in a delay in your retirement planning and saving.
KiwiSaver can help you with retirement savings while you have a mortgage by encouraging you to make regular contributions towards your retirement. It is one of the key solutions to the question of how much do I need for retirement NZ based. Making the most out of your investments and savings can make a big difference when it comes to retirement planning.
Naturally, getting rid of any other debts besides the mortgage is key to lowering the figure when calculating how much do I need for retirement NZ based. This is particularly true when using debt to buy assets that depreciate in value (cars, boats, jewellery). While you may want to enjoy and buy the things you’ve always wanted, debt is something to avoid.Â
Fluctuating interest rates are also something you don’t want to worry about when considering how much do I need to retire in New Zealand!
Where will my retirement planning money come from?
Most Kiwi retirees will have two main sources of retirement income, New Zealand Superannuation and their own savings. You may want to take a look at the current NZ Super rates as the pension may help you get by, but it’ll be your own savings that help make retirement fun and comfortable. That is the main source of income to be aware of when considering how much do I need for retirement NZ based.Â
Additionally, NZ Super is paid from age 65 and you don’t have to stop working to get it. As people live longer due to advancements in health and medicine, the retirement age also increases periodically. That is something to also consider when planning how much do I need to retire in New Zealand. As the average life-span gets longer, the amount you need to be financially stable will also increase. Many may continue to work part-time while receiving NZ Super. That is because when you really ask yourself how much do I need for retirement NZ based, the pension simply doesn’t cut it.Â
Planning ahead, you will also want to strive for savings and investments to be part of your cashflow in the golden years. Therefore, if you would like to carry on working, it feels like a choice rather than a necessity when worrying about how much do I need for retirement NZ based. If you have children, you don’t want to feel like a burden and ask them for help. They may not be in a position to do so, and thus retirement planning is critical.Â
Other sources could be selling valuable assets, shares, or a company you have built. These are considered additional sources when establishing how much do I need for retirement NZ based.
Thinking about retirement planning?
A survey by National Capital has shown that more Kiwis may be concerned about weight loss than retirement. Therefore, the fact that you’re thinking of how much do I need for retirement NZ based is a good thing. Even if retirement may seem like a distant blur, the key to a financially secure retirement is a well-crafted and personalised plan. A good strategy balances realistic investment return expectations and a desired standard of living when considering how much do I need for retirement NZ. Sound retirement planning may be the difference between two very different outcomes in the later years.Â
Understandably, retirement planning and analysing exactly how much do I need for retirement NZ based, may be a lot to think about. National Capital exists to help take the hassle out of planning and help Kiwis become financially secure. You don’t want to be in a position where the thought of how much do I need to retire in New Zealand is daunting and stressful. The chances are, the earlier you start thinking about it, the better you can plan ahead while still enjoying life.Â
So how much do I need for retirement NZ based? Start by taking National Capital’s KiwiSaver HealthCheck to figure out that exact answer. As this is one of the most relied upon methods to boost Kiwis’ retirement funds, it will be key to unlocking a financially healthy and happy outcome.
The right KiwiSaver will make a big difference in your retirement planning.
Spending 10 minutes to complete our HealthCheck may be key to answering the question of how much do I need to retire in New Zealand.