Mind The Gap – A Traveller’s Guide To Retirement Planning

23 October 2019 by Bruce Cameron in Retirement, Financial Planning

Mind The Gap – A Traveller’s Guide To Retirement Planning

Mind The Gap – A Traveller’s Guide To Retirement Planning

What do travel and retirement planning have in common? At first glance not much, however, whilst visiting the UK recently I was reminded of this saying at the London Tube stations – “mind the gap”. Most visitors to London have heard the words “mind the gap” when travelling on the tube. It’s important as a wrong step may cause an injury when boarding a train whilst travelling about London and beyond.

The rush of air in the tunnels going from one destination to the next can be quite the experience and exhilarating on the first few occasions. It’s a little like looking at your future life after working for several decades and pondering what adventures await me on this platform? Where shall I visit next? What shall I do? Will I have the funds to do these activities or am I planning to be spectator rather than an active participant in this next set of life’s opportunities?

However, unlike the London underground with its maps and well-marked signs, planning for retirement takes a little more foresight. We don’t plan to wake up one morning at a train station with no funds in our wallets to explore the local attractions.

Financial planning allows you to enjoy life at each stage and plan with confidence knowing when you want to stop work, the retirement income gap challenge is settled.

Let’s focus on the existing known income numbers for NZ citizens for a second:

NZ Super (post tax) Annual.

2019 Rates

Desired Income

The Gap





Couple- Both Qualify




Pictorially it may look like the graph below; which in this example shows a positive outcome for the clients living expenses over the next 20 years. Does your graph look equally as positive?

Example of a lifetime cashflow forecast*

*Projections above are based on following assumptions;

Desired Income; $60k drawings age 68-78, including NZ super orange line

Desired Income; $50k drawings age 78-88 including NZ super orange line

Here are some questions to consider with your financial adviser to make sure you are on track for your retirement income:

  1. Am I investing enough now for the income I desire when I stop work?
  2. If I had a $200k unexpected life expense would this impact my capital and future income and life plans?
  3. Could I take time off business and work for 6-12 months if I chose, to achieve a personal goal or help a family member, a friend or an organisation you care about?
  4. Are the assumptions I/we made 10-15 years ago still the most tax effective for my circumstances?
  5. If I am buying my first home soon, how quickly can I repay my home loan and provide for what I need in retirement?
  6. Should I invest in property and if so, what are the risks?
  7. Am I making the best use of my KiwiSaver contributions?
  8. How much of a legacy do I wish to leave?
  9. Does my current insurance protect my life plans and retirement capital sufficiently?

To consider these answers in confidence so you can enjoy life on your terms, without needing to be concerned about an income gap at retirement, give your local Lifetime office a call and speak to one of our advisers to see how your tracking towards your aspirations and your income for life; however near or far retirement may be for you.

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs.  Any opinions contained in it are held as at the report date and are subject to change without notice.

Article By Bruce Cameron - Meet Bruce

Bruce Cameron is an investment adviser with Lifetime who enjoys travel and helping clients “mind their gap”.

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