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65 is the new 50

Turning 65 doesn't mean retirement any more. People are living longer – this sometimes means that they work for longer and that they have financial commitments later in life. Life is complicated and textbook renditions of the financial life stages are less frequent. 

The Financial Services Council of New Zealand has published some facts about retirement. Did you know?

  • That in the past people typically lived 15 to 20 years in retirement - this could now be 30 to 40 years
  • It is possible people will live in retirement almost as long as they’re in the workforce.
  • New Zealanders reaching 65 are living on average two years longer each decade
  • It’s expected 44% of males and 52% of females born in 2011 will live to be 100

This shift in retirement age means that people will increasingly need insurance later in life – as with every other stage in your life, you will need a financial plan that reflects who you are and is tailor-made to your needs.

Here are a few things to consider:
Longer lives – because people are living longer many are working longer. It maybe because they can’t afford to retire on NZ Superannuation or because they choose to work until later in life. If you don’t feel that you are getting ready for retirement at age 55 then you will make decisions to grow, build, and do new things – and you will need a financial plan that protects you and your loved ones.

New careers – being made redundant at 59 used to mean early retirement. Today it might mean that you can start that business you have always wanted to run. Start a business, borrow money, sign a lease and buy equipment. 

Grandparents looking after grandchildren – if your grown-up children have a messy divorce, medical problems, want to go back to university, or are going to work in Australia then you as the grandparent might need to step in to look after the children – and you want to make sure those children are protected in the same way as if they were your own children. What would happen if you were not there to provide for them?

Family finances– Would you like to leave some inheritance to your children? Leaving your family home is not the only option. You can get your children to help you with the cost of that policy, and see your life policy as an investment for them. Insurance is a far more liquid asset than real property and a good way to leave something for your loved ones.