Saving is deferring your spending. So far, we have focused on what level of income you want in retirement and how much you need to save to achieve this but you must also calculate how much you can afford to save.

It maybe that you have to revisit your goals in order to afford to save at the required rate to; retire when you want - at a level of comfort you expect.

Example:

Bill is 55 years old and his wife Sally is 54 years old Their combined income is $80,000 and they have budgeted for a retirement income of $54,000.

Currently they have $270,000 in Kiwisaver and they are intending to increase their savings by saving $7,000 a year.

Both Sally and Bill intend to retire when Bill reaches 65 years of age...