Retirement – will you be busy or bored? Are you thinking about how much do I need for retirement NZ based? Sometimes we can’t wait to be retired, but sometimes we don’t want to think about it too much. Others may want to continue working well beyond the age of retirement.
Although ten to twenty years until retirement seems a long way away, these years give you a crucial opportunity to set yourself up for the future. Recently, research by National Capital has shown that three out of four Kiwis are unsure of how much money they will need to retire when the time comes. If you are one of those people wondering how much do I need for retirement NZ based, read this carefully.
How much do I need for retirement NZ when it comes to a KiwiSaver balance?
It makes sense that the sooner you start saving, the better. But you also want to know about the KiwiSaver goals to achieve and how much do I need for retirement NZ based. This differs for everyone. It depends on personal circumstances and factors such as your retirement time horizon, what sort of lifestyle you want, and where you will live.
We should also consider the fact that your costs will change throughout your retirement. For example, you may have a higher proportion of costs related to travel or housing in your early years of retirement; and as you get older, you may be spending a greater amount on healthcare.
If you are renting a home instead of living in your own home, you will need more savings to cover the cost of rent, but you also won’t have money tied up to a home. On the other hand, if you own the home you live in, mortgage-free, you don’t have to bear the risk of rent increases or being asked to find a new place.
You can start your Free KiwiSaver HealthCheck to figure out the answers to how much do I need for retirement NZ based. Our step-by-step system will guide you through to a desired outcome for future planning. Did we mention it’s all free and covered already via the scheme providers?
Debt-free retirement
Paying off debt in retirement is more difficult, therefore, being debt and mortgage-free by retirement is a great goal. That is one of the first things to have in order before thinking about how much do I need for retirement NZ based. Many retirees are able to manage financially as they don’t have to make mortgage repayments. Moreover, by owning your own home, you are able to have more control over your finances.
Some downsides, however, is that you will have responsibilities such as taking care of maintenance, insurance and rates. If you leave retirement planning until after you’ve paid off your mortgage, you have the risk of holding your mortgage for longer than you expect if there are potential changes in your circumstances. This may result in a delay in your retirement planning and saving.
KiwiSaver is able to help you with retirement savings while you have a mortgage by encouraging you to make regular contributions to your retirement savings. It is one of the key solutions to the question of how much do I need for retirement NZ based. Making the most out of your investments and savings can make a big difference when it comes to retirement.
Naturally, getting rid of any other debts besides the mortgage is key to lowering the figure when calculating how much do I need for retirement NZ based.
Where will my retirement money come from?
Most Kiwi retirees will have two main sources of retirement income, New Zealand Superannuation and their own savings. You may want to take a look at the current NZ Super rates as the pension may help you get by, but it’ll be your own savings that help make retirement fun and comfortable. That is the main source of income to be aware of when considering how much do I need for retirement NZ based.
Additionally, NZ Super is paid from age 65 and you don’t have to stop working to get it. Many may continue to work part-time while receiving NZ Super. That is because when you really ask yourself how much do I need for retirement NZ based, the pension simply doesn’t cut it.
Planning ahead, you will also want to strive for savings and investments to be part of your cashflow in the golden years. Therefore, if you would like to carry on working, it feels like a choice rather than a necessity when worrying about how much do I need for retirement NZ based.
Thinking about it?
A survey by National Capital has shown that more Kiwis may be concerned about weight loss than retirement. Therefore, the fact that you’re thinking of how much do I need for retirement NZ based is a good thing. Even if retirement may seem like a distant blur, the key to a financially secure retirement is a well throughout and personalised plan. A good strategy balances realistic investment return expectations and a desired standard of living when considering how much do I need for retirement NZ. A sound retirement strategy may be the difference between two very different outcomes in the later years.
It is understandable that creating a retirement strategy and considering exactly how much do I need for retirement NZ based, may be a lot to think about. National Capital exists to help take the hassle out of planning with the goal of helping Kiwis become financially secure.
So how much do I need for retirement NZ based? Start by taking National Capital’s KiwiSaver HealthCheck to figure out that exact answer. As this is one of the most relied upon methods to boost Kiwi’s retirement funds, it will be key to unlocking a financially healthy and happy outcome.