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| Retirement Planning Will you have enough to provide an independent income?Are you already retired? Click here. Survey Attitude to Saving for Retirement Statistics in Australia show that the average age of retirement is 57 - with the majority of those retiring not doing so by choice. We believe New Zealand would not be too different. It is prudent to base your retirement age as being around age 60 "The best way to predict your future is to create it", Abraham Lincoln Survey Results on Attitude to Saving for RetirementThe results of an Australian survey (also applicable to New Zealanders) conducted in 2004 showed:
How Many Years Will You Have in Retirement?New Zealanders are living longer; life expectancies have risen 6 months each decade since 1945. The number of people in New Zealand aged 65 and over is expected to rise by 135% from 385,000 to 892,000 by the year 2031. The number of those aged 85 and over is expected to rise by 282% to over 250,000 by the year 2031.The number of people aged over 65 will make up nearly 1/5 of New Zealand's population by 2031. Perhaps the most sobering thought is that according to the latest facts and figures coming out of the USA, advances in medical science and improving standards of living means a child born today could live up to age 130. The New Zealand Department of Statistics mortality studies indicate the following life expectancies:
How much will you need?Surveys run by the Retirement Commission have shown for a couple in retirement to cover basic living costs they will require an income of around $25,000 (net of tax) per year. This does not include replacement of cars, white ware or holidays. We recommend a couple should aim for a minimum annual income of around $45,000 and to be independent of whether or not they qualify for future entitlement to New Zealand Superannuation. The retirement commissioner recommends if you want your existing lifestyle to continue in retirement, provided all debt has been repaid, you should aim for 70% of your current income. When should you start saving?
Calculate how much you will need to save for your retirementWhere we can assist you is creating your Financial Plan. New Zealand SuperannuationThe current Government policy is 65% of the average weekly wage at age 65. This remains a political football with the major political parties recognising this will be unsustainable by 2040 (or sooner) with the doubling of those aged 65.
Source: Ministry of Social Development www.winz.govt.nz . NOTE: The amounts shown are net of tax The retirement age of 65 is quite arbitrary. Bismark, considered the founder of the German empire and Germany 's first Chancellor, introduced it in 1880 at the time he introduced the world's first state pension. He deliberately chose 65 because the average life expectancy of a German at the time was 45! It has already been proposed to the Australian government that the age for qualifying for a state pension be progressively increased to 70 - a view shared by a number of other nations. Download this fun calculator and work out how many days to your retirement plus more fun things like how many times has your heart beaten, your zodiac and Chinese star signs etc, click to find out more. You may like to also look at Retirement-Happy.com an on-line retirement directory. What we have Observed as a Trend in the US In the US the trend that we have observed is to save extra for your retirement so that you can afford to have a live in care giver. |
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