NZ Super is one of the world’s most generous. A “national treasure” as referred to by the Retirement Commission. A study by Michael Littlewood of the Retirement Policy Centre at the University of Auckland shows NZ Super for a single person living alone is 46% of New Zealand’s GDP per capita. (A single person living alone receives $349 a week, which is increasing to $357 as of the 1st April 2013.)
In 1976, 8.8% of the New Zealand Population was over the age of 65. By 2006 this rose to 12%. This increase was significant and forced the Government to change eligibility rules from 60 to 65 years of age. The population is forecast to rise even more dramatically as the baby boomers retire. By 2061 Statistics New Zealand expect 27% of the population to be in retirement.
When the cost of NZ Super gets too high (as a % of NZ GDP) it moves into an unsustainable red-zone, leading to a change in eligibility and/or payment amounts.
Most of us are doing well if we are in KiwiSaver and meeting our mortgage repayments. For the majority of us, little more seems possible without unreasonable sacrifices to our quality of living. But are you aware KiwiSaver will only fund about 30-50% of your retirement needs? And have you considered whether you want to keep your home in retirement?
BUILDING A BRIDGE BEYOND KIWISAVER.
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