We love the summer holidays! It’s always great to spend quality time with family and friends, doing some of the things we enjoy. And while most of us have reluctantly retreated back to work, “one day” when we retire, we’ll be able to do all the things we love, all the time.
Or will we? Unfortunately for many pensioners, the reality is that they’re getting by on very little. Current research shows that around 60% of retirees are managing on New Zealand Super alone (Source: Commission for Financial Literacy and Retirement Income).
For a person living alone, that’s about $1,830 a month, and $2,770 a month for a married couple (before tax). Even if you are mortgage free, after paying for the basics like food, bills, rates, petrol etc. there’s not a lot left in the pot for long lunches or holidays. And if you’ve just turned 65, the likelihood is that you’ll
have to live this way for another 20 to 25 years.
If you do one thing this year, we recommend you put some time into thinking about how much you’ll need
to support a happy and achievable retirement and your new found freedom. While it’s often hard to work out exactly how much you’ll need, the best place to start is with the fun stuff – your goals. Will you travel? Will you take up a new hobby? Whatever you decide, you need to make sure you have enough in the
bank to fund it, and pay the bills. Then you’ll also need to consider the not so fun stuff, like ensuring you will have sufficient to manage your day to day expenses and bills which wont magically reduce just because you have retired.
There are a few tools out there now like online calculators which can help you work out a basic savings plan, however they are unlikely to give you the complete picture, as most don’t take into account all the variables involved in retirement planning.
At Foresight Financial Planning, we specialise in retirement planning and have the latest tools and software to help you work out how much you’ll need to save, all in a matter of minutes. We can also help you put together a personal retirement plan and offer a range of savings options to suit different budgets.
You would be amazed at how even a small regular saving, especially if combined with KiwiSaver, can make a huge difference down the track to help make retirement a happy and fulfilling time in our lives.
So if you’d like to plan for a fun future, then we can help. Give us a call for a free, no-obligation chat.
At Foresight Financial Planning we offer free advice and consultations. To get in touch with us, please call (06) 751 4510 or email [email protected]
A free disclosure statement is available on request.
Foresight Financial Planning received Highly Commended in the New Business Excellence category in the Taranaki Business Awards 2013.