Each decade or season of life brings an opportunity to get your financial ducks in an organised row, so you can continue enjoying the kind of lifestyle in your retirement that you’ve grown accustomed to during your working life. So, how do we arrange our money so we don’t arrive at 65 then wonder how to afford a few teabags and a reasonable haircut?
Stats NZ Tatauranga Aotearoa’s latest report on life expectancy at birth projects males to live to 86.1 years, and females to 89 years by 2060. They have also created the ‘How long will I live Calculator’ - available on the stats website. Enter the year you were born, your age and sex and you’ll be rewarded with an answer, divided helpfully into three categories assuming low, medium and high death rates. It’s really an essential first step for smart retirement planning.
The below table put together by Massey University gives you a ball-park figure of the type of figure you may need to work toward.
It’s a good idea to be organised when spending, to allow for as much reitrement saving opportunity as possible. Think about where your dollars and cents actually go, and how you could earn a few extra bucks. You could consider working past retirement age, using your house as a money maker by taking in a boarder, subdividing your property or selling your home to family while retaining the right to live there. If you have some dollars tucked away, consider talking to your bank about putting your money into bank term deposits.