Financial Planning For The Elderly
Elderly Kiwis make up a growing proportion of the New Zealand population and have significant financial management requirements as they live off of retirement savings and government support. If you are elderly or approaching retirement, contact a MyFuture Qualified Financial Adviser to help you meet or exceed your retirement needs.
Whether you have saved for retirement your whole life or you got a late start in the game, you can make the money you have work for you with the help of the MyFuture team. Our Expert Financial Advisers will help you achieve financial freedom so you can enjoy your retirement years.
Is It Too Late To Create A Financial Plan?
It’s never too late to create a financial plan. Whatever age you get around to it, our financial experts at MyFuture will guide you through your options and the best strategies to pursue the retirement lifestyle you want.
If you haven’t retired yet, our experience has shown that elderly people who can comfortably live out their dream retirements created a financial plan before they hit retirement age. Depending on when you plan to retire, what assets you hold, and what level of risk you are comfortable with, a combination of investments and savings strategies will ensure your retirement years can be enjoyed free of financial worries.
If you are already at retirement age or are already retired, don’t fret. The MyFuture team can help you make the most of the resources available to you with a financial plan that takes into account your financial goals.
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What To Do If You Don’t Have Enough Retirement Savings?
Approaching or reaching retirement age can cause a feeling of trepidation in many elderly people. The constant worry of not having enough money to retire comfortably is a valid concern and one we can surely appreciate. For many seniors in New Zealand, the superannuation payments of NZ$350 a week are their sole income. While this may seem like it’s enough, according to this New Zealand government survey in 2015, 25% of Kiwi retirees don’t have enough money to do all the things they want in retirement. Likewise, 4% of retirees in NZ say they’re struggling to make ends meet.
Review your current savings
Your savings can come from a variety of sources, so be sure to review your accounts and identify where they are and how much you have:
- KiwiSaver funds
- Employer retirement funds
- Personal retirement funds
- Other savings and investments
- Large assets such as a home or business
- Smaller assets such as vehicles
Maybe the travelling you were planning to do in retirement will have to be done on a smaller budget or you can downsize your home to free up some funds. Adjusting your expectations to make room for necessities or indispensable comforts will make your money go further for longer.
Finding part time work
We’re not suggesting you go back into full time employment, but finding something you like doing that you can be paid for might be a way forward to help you reach your desired retirement lifestyle.
Taking advantage of resources available to you
The NZ government’s superannuation (NZ Super) payments on a biweekly basis do provide enough income for some elderly people to live on comfortably. While they won’t enable you to splurge on luxurious holidays, they can tide you over while you wait for savings or investments to realise their potential. If you’re able to save anything from these payments, that money can be reinvested and potentially extend the life of your retirement funds.
Get in touch with MyFuture today so we can discuss how to extend the life of your retirement funds and make the money you do have work for you.
Government assistance schemes
Besides your superannuation, the NZ government has several programmes that can provide you the financial assistance you need. Any savings you are able to still generate can be added to your KiwiSaver. Your SuperGold Card can provide access to transport as well as many discounts on the things you buy. There are also programmes to subsidise housing, provide healthcare needs, reduce your energy spending, and many more.
Where Should A 70 Year Old Invest Their Money?
When you reach 70 years old, there are still opportunities to invest your money. Depending on how much retirement savings you have stored away and how much risk you’re willing to take, you can invest your money into a combination of savings and investment programmes.
While savings programmes are more likely to protect your assets as they carry less risk, they’ll also accrue interest at lower rates than investments. Investments inherently carry more risk, but they can also provide higher returns enabling the elderly to upgrade their retirement lifestyle or goals.
One of the most important considerations is understanding how much money you need from your investments, and when.
Reach out to a Qualified Financial Adviser at MyFuture today for a FREE no obligation Discovery Session so we can help you protect your assets now, grow them in the future, and be ready for whatever life throws at you.