Getting the retirement you want.
Whatever the retirement you envision, planning and starting early is the best way to get there.
Know what the goal is.
Are you after a simple retirement, or a luxury one? How long have you got until you plan to retire? These are some key questions to have answered when you're planning on how you're going to achieve the retirement you want.
How much do you need?
So you know what the goal is: I want to have $800 a week. I have 35 years until I plan to retire.
More things to consider:
- Average life expectancy is 90 years old for men, 94 years old for women
- NZ Superannuation isn't guaranteed – if you're a while away from retirement you might not be able to rely on it as a source of income. In that instance, your savings will be essential
- Will you have a mortgage or rent to pay?
Now work it out (the below assumes you're female, wanting to have $800 a week from retirement at 65 until average life expectancy of 94 (29 years), and you've 35 years until you retire):
1508×$800= $1.21 million (approx.)
$1.21 million÷1820 weeks before retirement =$665 per week (approx.)
Is it achievable to save $665 a week? Think about how you can save – this might be where KiwiSaver comes in, or high interest savings accounts. Or you might need to re-think the retirement lifestyle.
When should you start?
The sooner you start saving for your retirement, the better off you'll be, but it's also never too late to start to have something to contribute towards your retirement.
Tools and advice
When making big decisions that will effect your long-term future, one of the wisest steps you can take is to seek professional support, so do your research and get help to find your best fit.
What could my KiwiSaver projected balance be?
Discover how our financial advisory service can help.
Talk to a Westpac Financial advisory
Our team can help answer questions and give the support you need to help you build your wealth.