NZ Superannuation and the new retirement age
I thought I would address a current topic here given the recent announced changes to the NZ Superannuation fund and how it will affect people in the future.
This has been a massive “hot potato” for all the political parties so it’s great that we now have some form of plan for the future for retirement in New Zealand.
It was obvious that something had to change especially when you consider the increasing costs (estimated to be $20 billion by 2031), people living longer and more and more people are still working full time into their 70’s.
The first thing to bear in mind is that if you were born on or before 30th June 1972, the new retirement age won’t affect you and you will still receive NZ Super from your 65th birthday.
If you were born on or after 1st July 1975, you will be eligible for NZ Super from your 67th birthday.
Those born between 1st July 1972 and 30th June 1975 will start to receive NZ Super sometime between age 65 and 67.
The great news is that NZ Superannuation rates will continue to be indexed to the average wage; everyone will still be entitled to receive it and there will be no means testing. In addition, the KiwiSaver retirement age will remain at age 65.
Remember, NZ Super is a bonus but shouldn’t be relied upon as your sole source of income if you are wanting a comfortable retirement.
Let the focus be not on when we get NZ Superannuation but on what we do ourselves between now and then, to ensure that we can plan for a well deserved and fulfilling retirement.
We are called foresight financial for a good reason – lets have a chat, it’s never too late to plan for your retirement. Give me call on 751 4510 or visit our webpage on retirement planning https://www.foresightfinancial.co.nz/retirement-planning.html, there’s a handy tool to help you calculate how much you need to tuck away to enjoy the retirement lifestyle you deserve.
Talk soon, Mike.