Golden Years Guide

There are a few things to consider when turning 65, so we've created this free Golden Years guide to help make the transition a bit easier and clearer.

While this might not mean retirement for you just yet, or perhaps you've already retired, this is the year KiwiSaver unlocks and you qualify for superannuation. Therefore it's a good time to have a quick retirement check-in to ensure you've got all your ducks in a row for when the time does come. Regardless if you are working or not - let's ensure your money is working for you.

We have a saying in our profession that retirement comes in three stages; all go, go slow, and no go. The finances tend to follow suit. We're here to help you enjoy the fruits of your hard work, especially in those 'all go' years, while still ensuring there is enough to meet your needs and goals later in life.

If you'd like to know more about our recommended financial strategies to make the most of your golden years, take a look at our free guide below. As always, we are here to help, so please do reach out if you'd like to book in a chat about your personal retirement plan.

1. Time to review your KiwiSaver – it can still add value after 65.

The first step is to ensure that your KiwiSaver is in order. If you haven’t already, now is the time to have a review of your KiwiSaver to ensure that you are in the correct fund. A study carried out by the Financial Services Council (FSC) shows that approximately two thirds of Kiwis rely on their KiwiSaver for their retirement. A conservative fund, for example, tends to have more predictable returns and can be appropriate for when you are looking to access your funds within a short timeframe. This can be in the form of a lump-sum payment, the occasional one-off partial withdrawal, or putting a regular withdrawal in place to top up your income. 

2. Apply for your superannuation payments to ensure they start on time.

You can apply for your New Zealand Superannuation within 12 weeks of your 65th birthday. Once your application has started, you have 20 working days to complete the process and provide all supporting documentation required. The amount you are entitled to varies and depends on factors such as your relationship status, living situation, and any other income that you may already be receiving such as an overseas pension. It is good to get this process started early to ensure that you receive your payments as soon as you reach your 65th birthday.

3. Still working? You’re not alone. But let’s make that superannuation income work for you too.

Turning 65 doesn’t mean that you must stop working immediately, you can continue to work until the time feels right for you. It does mean, however, that you can receive your New Zealand Superannuation on top of the income from your job. You might need to adjust your tax code to ensure that you are paying the correct amount of tax. This depends on the income that you receive from your job and whether you will be relying on your superannuation as your primary source of income. You may decide to put your super payments towards an investment, your KiwiSaver, or maybe just pop it into a short-term savings account for a rainy day. Our advisers can talk you through the options that are available to you with this secondary source of income, and help maximise your superannuation payments. 

4. Apply for your Gold Card for great rewards. 

Your Gold Card will be automatically sent out to you when your New Zealand Super has been granted after you turn 65. This usually takes a few weeks to arrive, but you may have to wait a bit longer if you applied for your superannuation ahead of your 65th birthday. Your Gold Card gives you access to discounts with vendors across the country including public transport, food, fuel and utility bills such as phone and power. This is a great way to keep your expenses down so that you have a little more left over to save or spend however you fancy. You can take a look at the full list of benefits available on the Gold Card website here.

Although people over 65 make up only 16% of the New Zealand population, they account for 42% of health service use (NZ Medical Journal).

5. Want to leave a financial legacy for your family? Let’s plan that now.

Lifetime are here to help guide you in building the financial legacy you may want to leave for your family and loved ones after you pass. There are many options to consider when planning a legacy, including lump-sum payments, establishing trusts, or donating to charities. You don’t have to wait to leave your legacy either, you could start now by investing in your families’ futures to encourage them on their own journeys. Our advisers can help figure out what is right for you and your current lifestyle so that you can build a long-lasting legacy for your children and grandchildren. 

6. Be prepared for a few healthcare and wellbeing costs.

As you get older, costs for your health and wellbeing are likely to become more frequent. This can put further financial pressure on you at a time when you are already facing other financial pressures, like a decrease to your income. Although people over 65 make up only 16% of the New Zealand population, they account for 42% of health service use (NZ Medical Journal). There are options available to you to help keep healthcare and wellbeing costs down. Most notably, a Community Services Card can reduce the costs of visits to your GP and prescriptions. You can check your eligibility for this by checking the back of your Gold Card or on the Work and Income website here. Other options include the High Use Health Card, prescription subsidies, and residential care subsidies or loans. 

7. With changes in income, can come changes in prescribed investor rates (PIR) for tax.

Ensure that your PIR rate is correct so that you aren’t underpaying or overpaying your tax, otherwise you may be required to pay the IRD any outstanding amounts. It is a good idea to add this to your 'tax to-do list' each year to ensure that you stay on top of this in case of any changes that need to be made. 

8. The psychology of retirement – how to keep your mind and body active and healthy.

Retirement is an emotional stage of our lives that has been reported by some to bring on strong feelings of anxiety and self-doubt as they find themselves with more time on their hands than ever - and sometimes with less to do. Many retirees say that they lose their sense of purpose as they find themselves struggling to adjust to this new lifestyle. Keeping your mind and body active during this period of your life is essential. Now could be a great time to re-visit old hobbies that you previously had no time for, learn a new skill, or plan getaways for yourself to places you’ve always been meaning to visit. Keep your routines going to maintain structure in your days and set out to achieve smaller goals that you can work towards. A good financial plan ensures you have the income to enjoy your retirement with hobbies, projects and the freedom to travel new places, experience new things, and soak up new knowledge.