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How much should you save?

This depends on what sort of retirement you want and how you invest your savings. We can help sort your investment needs.

When it comes to planning a secure retirement there are 2 things to remember:

     • The sooner you start to save and plan for your retirement, the more likely you are to end up with enough savings in retirement;
     • Saving a little is better than not saving at all.

There are 2 factors that determine how much savings you need:
     • How long are you expected to live?
No one knows how long they will live however the age people can expect to live to is increasing annually so assume that you live a little longer than the current average. It would be better to die leaving money behind rather than for you to live longer, and have the money run out.

     • What lifestyle do you want in retirement?
The amount of income that you will need depends on the retirement lifestyle you want (there is no hard and fast rule). The right target for you depends on your own circumstances. For example, you may need more if you still have a mortgage at retirement or if you live in rented accommodation.

We can help you through the process of preparing a retirement budget and assist you to plan for your retirement. Once you know how much income you will require annually, the age you intend to retire then by estimating life expectancy we can estimate how much savings you need to achieve your target income. Remember the amount required to achieve a target income will increases each year due to inflation.

How much you need to save to get to your target income depends on:
• your current age
• your retirement age
• how much you have already saved
• any future sources of income (e.g. inheritances etc)
• employer-sponsored superannuation
• KiwiSaver contributions
• part time work when retired
• New Zealand Superannuation benefit