Red Red Whine
Stay close to me. These are the lyrics from the song with the same title sung by UB40.
I chose this song this week because many of us enjoy a tipple of red wine every now and then, and sometimes a little more often than that!! It became relevant to me when I was doing some work with some middle aged couples, looking at their retirement. They had common elements to them, in that they all wanted to maintain their current lifestyle which involved red wine, more travel and replacing the car when required.
The problem was that when I crunched the numbers, they had much less to spend than they thought. What they needed to start putting away for retirement gave them an eyes wide open moment! They thought that Kiwisaver was going to take care of most of it, or that they would be able to downsize their home.
ANZ recently completed some research around how much money people really need in retirement. It found some similar findings to my much smaller sample group. Here are some of their key findings:
- 75% of people intended to fund their retirement through Kiwisaver.
- 33% of people planned to take an overseas trip at least once a year when they were retired
- 79% of people expected to use their own car to zoom around in
- Less than 1% planned to sell their home and rent
Here is the reality check:
- 54% of Kiwis expect to have saved enough for $300 a week for expenses on top of their base NZ Super income
- The average 30-year-old is only saving enough to have $155 per week in retirement above NZ Super
- The average 45 year old is only saving enough for $75 per week above the NZ Super
The full article can be found here https://futurewise.anz.co.nz/media-release-reality-check-12-july-2016.aspx
The good news is that you can do something about it now. If you don’t, I’m sure you will survive. However, it takes away the choices and control you will have in your retirement. I mean there is nothing wrong with cask wine from a bladder!! Whine….
We can help to grow your wealth. Increasing your Kiwisaver contributions is one option, but that means your savings will be locked away until you are 65. That may not be the right option for you. Contact us today to take control, and find out what your options are, and how we can help.
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- Posted by Isbister
- On August 18, 2016