Crunching the numbers on retirement

You’re having “one of those days” at work. You start day dreaming about going fishing instead of being stuck at your desk. You might be thinking retirement’s not that far away now. But are you thinking about how you’ll pay for those fishing trips when you’re not working?

Well, The Financial Services Council of New Zealand (FSCNZ) have thought about it. Last year they released a report with some pretty interesting retirement facts to consider:
  1. New Zealanders reaching 65 are living on average two years longer each decade. Between 1996 and 2006 the increase was actually three years.
  2. While, in the past, people typically lived 15 to 20 years in retirement, this could now be 30 to 40 years. In fact, it’s possible people will live in retirement almost as long as they’re in the workforce.
  3. It’s expected 44% of males and 52% of females born in 2011 will live to be 100.
  4. By the end of this century, the above longevity changes will more than double the cost of paying pensions – from 5% to 12% of GDP – assuming no policy changes.
  5. Without significant policy change, tax rates will need to rise 28% to continue funding NZ Superannuation in its current form.
Further independent research also revealed some interesting statistics; highlighting that many New Zealanders will go into retirement regretting how little they saved:

  • 80% are concerned their savings will run out before they die.
  • 62% say they’re not saving enough for retirement.
  • Only 29% of New Zealanders thought NZ Superannuation alone would be sufficient to meet their retirement needs.
  • Only 10% of people believe NZ Superannuation will provide enough to allow them to live comfortably in retirement.
  • New Zealanders have greater expectations of their retirement than those in the past. On average, in order to live comfortably in retirement, people felt they’d require $632/week for a single person and $845 for a couple. That’s approximately double current average NZ Superannuation provisions; $339.92 and $522.96 respectively.
Whether you’re starting out in your career, you’re a seasoned worker or you’re nearing retirement, the future is something you can’t avoid. Retirement planning may be the last thing you want to think about, but it’s certainly something that requires significant consideration. Protect what you have, build wealth, secure your savings and investments and plan for a retirement free from financial stress.
Image courtesy of Hyena Reality / FreeDigitalPhotos.net


This product has been added to your cart