Retirement Planning NZ - Retirement Calculator
It is possible to work less and have more quality time with your family and friends, and to do the things you really love, while still being smart with your money. A retirement plan is the first step to achieving financial freedom. Lucky for you, we’re experts at gearing you towards your aspired lifestyle!
Unfortunately, people who don’t plan, will never know their limits and what they can truly achieve.
Planning for retirement is a lifelong process, we suggest you:
- Start planning as early as possible
- Determine your ideal retirement age
- Picture your ideal lifestyle (in order to understand how much that lifestyle is actually going to cost to maintain)
- Explore your ideal location
- Evaluate your ideal savings plan
- Adjust your necessary finances to make your dream retirement a reality
We want to help make your retirement years as enjoyable and comfortable as possible.
Understanding the factors you need to consider when retiring will ensure you’re better equipped to achieve the retirement lifestyle you want. Get in touch with MyFuture today for your FREE discovery session via email or phone and get started!
How To Plan For Retirement?
A common mistake people make is thinking more about how much you’ll need versus what you want to do with it. Retirement is a time to enjoy yourself and reward yourself for a lifetime of hard work. If you focus on just reaching a number, you’re neglecting the lifestyle opportunities and value to your overall well-being.
There is no compulsory retirement age in New Zealand, so many people continue to work flexible hours, part-time, or casually, especially when beginning their retirement. This could be done out of choice or out of necessity, but is an important consideration when planning for retirement.
Planning for retirement begins by getting clear on what your long term goals are, having an honest assessment of where you are at now, understanding what the shortfall is then determining what asset class you need to be in to make up that shortfall. It is also begins by understanding how to maximise your wealth creation potential using gearing strategies (borrowing money to invest) if the shortfall is too big to make up using any one asset class and of course, understanding how and when to diversify your portfolio and managing the risks you’re willing to take as you get closer to retirement.
Retirement Planning Goals
Challenge yourself to take a step towards a brighter future. There’s no time like the present to make your dreams come true and we’re just a phone call away to start the process.
If you’re old fashioned, your goals for retirement may be to simply live comfortably and that’s perfectly fine. But it’s also not uncommon to have loftier goals. We dare you to plan for your dream retirement and our goal is to help you get there.
Ask yourself these questions when making a plan for retirement:
- What is your income?
- When would you like to retire?
- Where do you want to live?
- What are you looking forward to?
- What lifestyle do you want for retirement?
- Do you intend to take any trips or make any large purchases?
- Do you want to continue working?
- Do you have any health concerns?
- What are your current debts?
Once you’ve thought about how you intend to spend your retirement years, there are some more practical questions that will guide you in figuring out how much you need to save:
- How much do you normally spend from month to month?
- What is your life expectancy?
- How much money do you have saved?
- How long do you have to save and invest for retirement?
- What wealth building sources are available to you?
What Is KiwiSaver?
If you are a New Zealand citizen or entitled to live and work in New Zealand and currently living in the country, then you are eligible to join KiwiSaver.
It’s a subsidised, voluntary, government savings scheme created to help you save for a house or retirement and you will likely be enrolled automatically at 18 once you enter employment.
If you need advice about the KiwiSaver scheme or would like more information on how to supplement your KiwiSaver savings, reach out to our Qualified Financial Advisers today for your no obligation, FREE Discovery Session.
When Should I Consider Retirement Planning?
Get to it today! If you haven’t started planning for retirement, you’ve already missed out on an under utilised investment window. The earlier you start, the better prepared you will be. It’s that simple!
Retirement planning doesn’t mean you have to make sacrifices in your youth, but it does mean investing in your future.
By understanding your finances, setting goals, saving, and investing, you’ll likely find you’re happier regardless of your age. It can give you the freedom to spend time or money on what matters most and the confidence that your future is protected.
Retirement planning is not a rigid process. Instead, it’s a balance of priorities where you choose how much you spend on what it is you want.
Reach out for a free Discovery Session, spend 45 mins of your time today for a clearer path to financial freedom.
Get Ahead With Quality Financial Advice
What Should I Know Before I Retire?
It is possible to set yourself up for a phenomenal, early retirement while still enjoying your life along the way.
Just like retirement planning, the transition into retirement doesn’t have to be difficult. MyFuture crunches the numbers to steer you towards a robust and foolproof retirement plan. Even if you reach out to us today, you’ll wish you’d have done it sooner.
Test run your retirement before you make it official
Ensuring you have the assets and fixed income to meet your needs during retirement is better acted out than theorised. MyFuture can help you audit your retirement plan to determine if what you have in place will work in practice.
Plan for unexpected expenses
You may encounter unforeseen expenses during retirement. Costs surrounding health care or assisted living might come into play somewhere along the way. Accounting for insurance or long-term nursing facilities can provide peace of mind and the resources to meet any circumstances that arise.
How Much Do I Need To Retire?
NZ Super (Superannuation) will provide a reasonable base income during retirement. Currently the NZ Super rates after tax are $437 a week for those living alone and $672 for qualifying couples. A 2019 study by Massey University found that most Kiwis spend more than that in retirement, especially in a big city.
Depending on their lifestyle, from ‘no frills basic’ to ‘a comfortable’ one, the study highlights that those living alone in Auckland, Wellington, or Christchurch spent between $602-$1,190 a week, while outside the city, spending was $574-$831. For couples, the difference was similar, falling between $899-$1,436 in the city and $640-$1,136 in other areas.
Knowing that the NZ Super will likely not meet your needs is a start, but the exact figures you will actually need depend on your goals.
Schedule a free Discovery Session with MyFuture to plan how much you need to retire and get started on your way to your desired retirement lifestyle.
How Many Years Of Retirement Should I Plan For?
We’re all getting younger with the wonders of modern medicine helping extend our life expectancy, there’s a decent chance of living until 90 years old or beyond.
Therefore, it’s best practice to prepare for a retirement that lasts 25 years if you were to stop working at 65.
How Can A Financial Adviser Help You Retire
At MyFuture, we do the hard work so you don’t have to do the guesswork. Our experience and expertise have provided us with a world of applicable knowledge that we’re ready to put to use for you.
We want to make financial advice accessible for everyone and ensure you’re well prepared for your future retirement plans. With the help of qualified financial advisers, you can create a retirement plan that expands your retirement options and provides the financial security to live the life you want.
You don’t have to navigate this alone. Contact MyFuture for a free Discovery Session today.
What Investments Are Best For Retirement?
Super NZ’s modest sum will surely lead us into a basic – no frills retirement, but we want more for you, our community and the next generation. We encourage our clients to save and invest independently of Super NZ in order to generate the savings you need to live your best life!
Everyone’s retirement goals are different and how you choose to allocate your assets across different investments can significantly impact your ability to reach your goals. Diversification and risk management are key no matter what your goals are.
At MyFuture, we can work with you to assess your investment risk tolerance and determine how best to invest depending on your desired risk and returns. We can review your current investment allocations and provide options that will suit your needs.
Book your FREE no obligation Discovery Session with us and let’s get started.