The Financial Services Council published a report December 2017 about what it is like and what it could be like for New Zealanders when they retire. The key findings were:
Nearly all older New Zealanders will be living on the NZ Superannuation pension alone after just 10 years. The rapid use of all savings and other assets by New Zealanders when they retire indicates a need for education on what investment options are available during people’s working lives. The concentration of wealth in a few asset classes and other results of this study indicate New Zealander’s could benefit from greater knowledge of potential investment types.
Nearly 4 in 10 of the elderly regret not having more financial advice, and many will embrace new technology to get further help to best- manage their assets. Similarly, many still in KiwiSaver want their providers to step up with more advice on how to reinvest savings and the proceeds of selling other assets like their homes. With 54% of 65+ homeowners planning to sell their home to help their retirement, the older population still has a keen interest in making the most of their savings and assets.
The $218 average after-tax weekly gap between what the retired need to live comfortably and what they actually have sends a message to those still working to make the most of opportunities to grow their wealth and increase their sources of income. For many, the gap will be larger, especially if they still have a mortgage or are renting at retirement.
Many people wonder if they can afford a Financial Planner or whether they have enough money to justify one, but people can’t afford not to have a planner or a plan.
Thirty years ago the age pension met 90% of your living costs, today it covers more like 35%. Thirty years ago you didn’t need to think too much about a plan, these days if you want to enjoy retirement you must plan for it and the sooner the better.