Retirement is a chance to relax, slow down and really enjoy life. No longer working is an exciting prospect but in order to fully enjoy your retirement it is essential that you start planning for it now.
What do you want your income to look like during your retirement? Early on, it is common for retired people to spend more money than when they were working. It’s a luxury you deserve but the money needs to come from somewhere. Later on, your healthcare costs will rise dramatically. NZ Superannuation is unlikely to be able to cover all of these added expenses; the rest will be down to your savings.
Your KiwiSaver may not be enough to fully prepare you for retirement. At Lifetime, we can help you set up additional Superannuation schemes so you can be certain that you will have enough money for a comfortable lifestyle during your retirement.
Have you thought about your insurances? With our increased reliance on debt, it may be that you will need to retain your Life and Trauma insurance policies for longer than you originally intended. Premiums can increase drastically as you age. Talk to an adviser to see if you would benefit from converting your premiums to level to avoid the annual increases.
Those in their twenties or thirties may not be able to rely on a government pension the same way our parents could. Retirement planning becomes even more essential. Get on the right path early and talk to us about a full financial plan for your retirement.
It doesn’t matter if you are just starting your career or if retirement is just around the corner. At Lifetime, we can help you prepare for that next step. Talk to us today and we can fully assess your financial situation, estimate how much you will need for retirement and then help you put a plan in place to make sure you get to have the retirement you deserve.
The average expected age to stop paid work in NZ is 67 years. (FSC, 2015).
My last article was written about teaching your ‘young’ kids about money and that was well received by our readers so I thought I would continue down the financial education path and focus on what we need to teach our ‘young adults’ about money.
I have always found having check lists helpful so hopefully this will help those young adults heading on their OE, graduating and leaving home and possibly also for the parents or grandparents who are helping coach these young New Zealanders from the side-lines.
It’s a nightmare trying to keep track of the different website logins; passwords that seem to be ever increasingly complicated; PIN numbers and security questions that you have no idea of the answers to; (no I don’t know the name of my favourite teacher!), it is not a surprise that many think technology is making things harder, not easier.
I decided when my boys were young that I would teach them both about money and investing. I opened KiwiSaver accounts for them when they were only months old. They also have non-KiwiSaver investment accounts to help fund the cost of university. My wife and I add to the accounts when we can and so do the boy's Grandparents.