Will Your KiwiSaver Give You The Lifestyle You Want?

Fri June 8th 2018

What kind of retirement lifestyle are you hoping for? Do you know how much money will you need to achieve this, and will your KiwiSaver fund be enough? If you feel as though your retirement planning amounts to little more than gazing into a crystal ball, then it's time to think again. You see, the sooner you start to plan properly for how you're going to live out your golden years then the better the chances of achieving those aspirations.

Here at Cave Financial we can help you plan properly for the retirement lifestyle that you want. In this article we share some ideas on what you need to be thinking about now.

The dream retirement

What do you see yourself doing when you retire? Is it lots of overseas holidays, dinners in fancy restaurants and hanging out with the grandkids? Most of us picture ourselves enjoying the good things in life when we retire, and why not since we've worked hard for it. But the truth is, this kind of lifestyle comes with a hefty price tag. And so the first step is to work out what kind of lifestyle is really important to you in retirement. You can opt for the super-duper retirement or you can go for something perhaps more realistic that includes only some luxuries and overseas travel.

The cost of living

Once you've decided on the kind of lifestyle that you want, then you can begin to consider how much it will cost. Work out a budget based on likely weekly expenses such as insurance, utilities, rates and so on. Then add in a figure for enjoying the finer things in life. Finally include something to cover the unexpected and also make provisions for future big ticket items, such as repairs and maintenance to your home. There are plenty of helpful online tools available, or talk to us for some expert advice. Don't forget that people are living longer than ever. Most retirees these days are looking at 25 years plus spent in retirement so make sure you include enough in the budget to cover that length of time.

Are you on track?

Now that you have a better idea of how much your retirement lifestyle will cost, it's time to look at how you are currently tracking. It's unlikely that NZ Super will be enough to cover you on its own, so you should be looking at supplementing this with your own savings, and KiwiSaver is one great option. As well as the savings you put in, your employer and the government will also be contributing to your KiwiSaver, meaning your savings will grow much faster. Will your KiwiSaver be enough? Obviously the more you can contribute now, then the more will be available when you retire. Get in touch for a comprehensive assessment of where your KiwiSaver is at.

What else could I be doing?

If you feel as though your nest egg won't be enough to cover your retirement, then there are a number of things you could be doing now. These include:
• downsizing to a less expensive home
• moving to an area with cheaper living costs
• working for longer
• saving more money in the medium term.

Talk to the experts
With so many variables and unknowns, planning for your retirement can be confusing. Get in touch with the expert team at Cave Financial and we'll get you on track with your KiwiSaver and retirement planning.