NZ superannuation has just increased – are you on track for a comfortable retirement? It could be time to start making a few changes that will set you up for a better future. The sooner you start, the more you can build your retirement savings.
The new superannuation rate came in from April 1, increasing by at least $10 a week for everyone. Singles living alone receive $437 a week, up from $423; couples where both partners qualify receive $672 a week, up from $652.
Will you need more?
If you’re looking at that and thinking that it’s not a lot of money to live on, you’re not wrong.
Many Kiwis do live on superannuation alone. If you have a debt-free home, a modest lifestyle and a resourceful frame of mind, you can make it work. However, you probably want more options in retirement – travel, for instance, or educating your grandchildren. To be able to live like that, you’ll need to supplement your superannuation allowance with some extra income.
That income will probably come partly from savings and KiwiSaver; it might also be generated by your business, or by rental properties, or from share market investments. The earlier you start saving and investing, the more you’ll have by the time you choose to retire – and the later you retire, the longer that money will last.
Creating a retirement plan
You can use a free Kiwi retirement planner like this one to work out whether you’re on track to have the kind of lifestyle you want once you finish working. Add in your KiwiSaver, estimate how much you want to live on, and your other income, and this tool will show you if you’re heading in the right direction. Still a gap? Make a plan to get yourself on track – you might consider working with a financial advisor.
When it comes to your business, we can help you find ways to generate more cash now, so you have more to invest in your future. We can also work with you on preparing your business for sale, or finding a way to retire from work while still keeping involved with your business and taking an income. With a bit of forward planning, you can achieve a great retirement with holidays and steak dinners.
Get in touch, we’d love to chat with you about your plans for the future – helping you achieve your dreams is what we love to do!