The only problem with this otherwise interesting article in The Herald is the title "How Much KiwiSaver You Need to be Comfortable" You need money, it doesn't have to be in KiwiSaver. In fact, as most financial advisers will tell you, above a certain level, the savings you need should not go into KiwiSaver. Contribute enough to obtain the advantages, and the rest should be in a fund which is not locked-in. Life has many surprises - retirement is the prize for avoiding or managing them.
The best, and central point, is that the amount of money required isn't that big. It is big if you are 55 and haven't got a cent saved, but for most people 45 and under the changes to lifestyle necessary to accumulate a sum of about $500,000 aren't terrifying. A plan can usually be made that includes savings, downsizing the home, and part-time work for a period in retirement that will make it all possible.
The other fascinating thing revealed is that it is actually slightly cheaper to retire in the main centres than in regional or rural centres. I presume this is because if you own your own home the single biggest extra expense of the big city is dealt with.
Comments