Retirement, how do you plan for it?
Most of us think retirement is too far away to worry about, sometimes that's true but 99% of the time it's something we don’t necessarily have to worry about, but be aware of.
Planning your retirement with plenty of runway in front of you will ensure when that time comes you’re in for a smooth landing and you haven’t left yourself short.
According to canstars recent consumer pulse report for 2022, 42% of New Zealanders are only relying on kiwisaver for their retirement and no other income sources.
Only 53% of New Zealanders have checked their kiwisaver and other balances in 2022 to make sure they're on track for a comfortable retirement.
Some sobering statistics. More info can be found here.
We believe retirement is always about making a plan & setting objectives, seeing what you’re doing now and then taking action on what you can do to reach that objective. To do this, you need to have all your information in one place.
Comfortable Retirement = What you’re doing now + What your plan is
How does the retirement feature work?
Setting up your retirement planner feature is simple, we’ll walk you through it below.
Step 1 - Your current age and retirement age: Enter in your current age and retirement age. The end of retirement will be 90 by default. You can however change this if you need to.
Step 2 - Your accounts: Now connect your accounts with funds you’re planning to use for retirement. This can be your savings, kiwisaver and investment accounts like Hatch or Sharesies.
Step 3 - Your contributions: Now enter in your details under each account you’ve connected, details may vary based on the type of account. Using kiwisaver as an example, enter in your income, fund type you’re in and contribution rate for yourself and your employer.
Once that’s done, simply tap on the green up arrow to collapse those details and move onto the next account.
Step 4 - What you’ll have at retirement: Now review your balances you’ll have at your retirement age entered in the first section.
Below your balances you can choose the single or couple NZ super payment, this gets factored into your retirement income. NZ super payments come into play once you’re 65 and over and have registered for them.
Super payments vary depending on if you’re a single or couple.
Step 5 - Sit back & relax (Or not): Review your income you’ll receive each week, fortnight, month and year using the bottom function.
If you don’t like what you see, see if you can make adjustments to your contributions section to improve this figure.
Keep in mind the equation we wrote earlier, a comfortable retirement equals what you’re doing now (Your current account balances), plus what your plan is (Your contributions and savings).
Want to go one step further? Set up some goals in the goals feature on where you’d like your account balances to be for your retirement. This helps you keep your eye on the prize.
Enjoy.
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Final words
Thanks for reading, if you have any feedback or questions on what you've seen so far, feel free to get in touch using our contact form or alternatively give us a bell at hello@budgetbuddie.co.nz
Disclaimer
This blog or any other information provided by BudgetBuddie is not financial advice. If you're needing financial advice please get in touch with a licensed financial advisor or professional.
