Retirement Planning

We can't predict the future... but we can prepare for it

Retirement is something that’s fairly easy to put off and worry about later, especially when you are young. After all, everything will sort itself out in the end, right?

Well… what if it doesn’t?

What’s your retirement plan then?

While you can have a realistic assessment of where you are financially, it can often be difficult to determine where you would like to be personally and what you would like to do with your time in retirement.

So, it’s  important that your Partner/Spouse are on board with one another’s plans as well. There are many types of retirement and many activities to choose from. These include but are not limited to:

  • Part-time work or Consulting
  • Travel or vacationing
  • Sharing in the upbringing of Grandchildren
  • Volunteering to Charities
  • Taking on new  hobbies
  • Focusing on physical fitness
  • Taking a range of classes
  • And lots of other options

Your Pension/Superannuation Plan  is important… It can provide an essential money-source for your dream retirement and enables you to live the lifestyle you have worked hard to obtain. You may have had several jobs or had a period of self-employment which will have affected the type and complexity of your Superannuation/pension plans. Having the knowledge if you have enough wealth to maintain your desired lifestyle in the future is very important.

So, how much do you need for a comfortable retirement?

It’s  quite a common  thought that a lot of people think that the Government Super will be sufficient to meet their retirement needs. – The current New Zealand Superannuation  rates for the current year 2020/21 and are established by the Department of Work and  Income and are updated annually in April. The current rates are as follows:

If you’re single and you :

After tax (fortnightly)

  Before tax            (fortnightly)

  1. live alone or with a dependent child                                     

$847.66    

     $981.46

  1. live with someone who’s either:
  • 18 or older (unless they’re a dependent child)
  • visiting and staying for more than 13 weeks.

$782.44

     $902.58

If you’re a Couple and you :    

  After tax (fortnightly)

 Before tax (fortnightly)

Both you and your partner meet the criteria

for NZ Super or Veteran’s Pension                                     

$652.04 each    

  $744.54 each

 

 

 

So, being able to maintain a similar lifestyle when you have given up work and relying solely on the Government Super, is going to be a real challenge for most people.

Creating a comfortable Retirement is more expensive than a lot people realise. Of course, you might be defiant and think you can work until the day you drop, and for some, that may be the dream, but the fact is you can’t perform your profession at a high level for your entire life.

As you age, you’re going to slow down and certain tasks will become more difficult. No matter how much you want to keep working for your entire life, it is no excuse to not save for retirement. Having that money handy prepares you in case you retire earlier than anticipated. Without a retirement fund to fall back on, you’ll be stuck in your “work forever” plan.

So, this is why Retirement Planning is important to get started on today. That’s right — today. Not tomorrow. It’s incredibly vital that you start planning for retirement early. You’ll put yourself in the best situation if you start planning for retirement early on. Accumulating the funds you need for a comfortable retirement may take decades, depending on your income, and you’ll want as large of a nest egg as possible when you are no longer bringing in a salary. By starting to invest in your retirement early on in your career, your funds will accumulate and grow over time, leaving you with a substantial enough fund to fulfill your retirement dreams.

The best news is it is never too early to plan for your life after you’ve finished your working life.

Now that you realise the importance in retirement planning, you can start developing your retirement plan today. So get in touch with us and make a start on your individual retirement planning journey.

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