The ‘Problem’ with Living Too Long
We’ll take it as a given that we all want to live a long and happy life. Undoubtedly, most of us would consider long life a good thing. But it becomes a challenge if we are unable to have an enjoyable retirement in old due to a lack of retirement funds.
Longevity is just one of the major issues facing workers today. When a person retires, their income stops whilst most monthly expenses continue. As a practical matter, this effectively forces a retiree to turn their assets and investments into an income stream as Superannuation alone may not match your needs.
Demographics are Changing
Taking into account increased Life Expectancy, Birth Rates and Personal Health, the Kiwi population is continuing to become older. As this trend continues there will be more pressure on government expenditure so it makes sense to ensure your retirement funding is well planned.
Planning for Retirement
We advise you arrange and take advice from a qualified LIFE-Time Authorised Financial Adviser (AFA) or Registered Financial Adviser (RFA) who are regulated in New Zealand by the Financial Markets Authority.
Your advisor will be able to plan for your retirement and help build your retirement fund in relation to your personal circumstances, taking account of your:
- Life Expectancy
- Personal Health
- Expected Withdrawal Rates
- Investment Returns
- NZ Superannuation and KiwiSaver
- Inflationary Impact on your Savings (you can find the Retirement Inflation Calculator useful to illustrate)
If you do not have a plan for how you will spend your savings, you could be exposing yourself to risks such as:
- Outliving your Assets
- Not having sufficient Savings and Investments to manage Long-Term Care Costs
If you are concerned about how you will fund your retirement, you’re not alone:
61% of people between the ages of 44-75 fear outliving their income more than they fear death
Request a LIFE-TIME Retirement Road Map
To learn more about our retirement solutions, please contact us on 09 418 5000 or 0800 54 33 84. Alternatively, you can complete our Financial Health Check that covers all areas of your finances or complete the form below to request your personalised Retirement Road Map: