In this month’s issue:
- KiwiSaver: Options at Age 65
- Willpower…..do you have it?
- Hot interest rate – 9 months at 3.65 %
KiwiSaver for you at 65
There is no retirement age in New Zealand, but 65 is the current age of eligibility for the NZ Super, the government pension. 65 is also the age you become eligible to access the money in your KiwiSaver account, if you’ve been in a KiwiSaver scheme for at least 5 years. So, if you joined at 64, you won’t be eligible until age 69.
If you are entitled to receive your KiwiSaver savings, you will no longer be eligible for the member tax credit ($521 pa) from the government.
However, this doesn’t mean you have to stop contributing – whether you’re retiring or continuing to work, keeping your savings invested with KiwiSaver could help you maximise your savings even further. Keeping your KiwiSaver account provides an easy, transparent and cost effective way to continue to invest your money in retirement; it may also ensure your retirement assets are diversified rather than simply being in the bank.
You also have flexible options available for managing your KiwiSaver money in retirement:
- Keep your savings invested in your KiwiSaver account – giving you access to a range of professionally managed funds.
- Set up regular monthly withdrawals – this is a convenient way to manage your money and supplement your pension or any other retirement income savings
- Make partial lump sum withdrawals at any time – you have the comfort of knowing you can access your funds at any time to help with one-off expenses, etc.
- A combination of the above options.
- Close your account completely – once your account is closed you cannot open a new KiwiSaver account if you are aged 65 or over.
The biggest decision may be deciding at what point in your life you wish to retire. For many of us, the decision is influenced by when we can afford to – and it’s often determined by the level of savings we have accumulated over the years.
The thought of retirement can be daunting for all sorts of reasons, financial and otherwise. You may need to ask yourself:
- Am I on the right track?
- Will my savings last me through retirement?
- What is retirement going to look like for me?
- What do I need to know?
Like most things in life, a bit of planning in advance will better prepare you for achieving your retirement goals. While it’s never too late to start, or check you’re on track with your savings, the earlier you start the better your chances of achieving the retirement lifestyle you desire.
Everyone’s retirement needs are different and that’s where we can help, so please contact us today and we can help you determine how much you need to save to reach your retirement goals. Give us a call on 0800 LIFE TIME or 09 418 5000
4 Ways to Willpower
Your mind can do anything. The question is: can your spirit?
The willpower response is a reaction to an internal conflict. You want to do one thing, such as eat that donut or supersize your lunch, but you know you shouldn’t. Or, you know you should do something like file your tax return or go to the gym, but you’d rather do nothing.
We skim Facebook instead of delving into our next big work project. We watch Netflix instead of learning a new skill. We flip through magazines instead of writing the next Great Novel.
Why? Because achievement is a lot of work! Pushing your mental boundaries is challenging, uncomfortable and exhausting.
Below are 4 ways to boost your willpower:
- Breathe. Slowing the breath activates the pre-frontal cortex and increases heart rate variability, which helps shift the body and brain from a state of stress to self-control mode.
- Meditate. Meditation has also been linked to increasing the reserve of willpower we have available, as well as improving attention, focus, stress management and self-awareness.
- Sleep. Sleep deprivation impairs how the body and brain use glucose and you’ll soon crave sweets or caffeine. If you can’t have eight hours a night, research shows that a single good night’s sleep restores brain function to an optimal level.
- Exercise. Australian researchers discovered exercise is the willpower “wonder drug”. In one experiment, just 15 minutes of exercise a day was enough to reduce smoking, drinking, junk food consumption and spending!
Willpower is a combination of courage, mental stamina and determination.
Source: Maximum Willpower by Kelly McGonigal.
Hot Interest Rate
LIFE-TIME Financial Group can offer our clients the best possible rates in today’s markets.
Get 3.65% for 9 months for a limited time.
Give us a call on 09 418 5000 / 0800 LIFE-TIME / 0800 54 33 84