Retirement Planning HINTS FOR A BETTER RETIREMENT
Useful Retirement planning tips, ideas and suggestions to help you enjoy a long and prosperous retirement.
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How safe is NZ Super?
”The superannuation age needs to rise from 65 to keep the Government’s post-Covid debt levels down to a sustainable level”, the Organisation for Economic Cooperation and Development (OECD) has warned NZ.
The OECD previously called on New Zealand to raise the superannuation age in 2013, 2015, 2017, 2019, 2021 mentioning the recommendation again in its 2024 report.
The latest report suggested the need for reforms had increased because government debt was rising substantially.“an expected rise of nearly 3% of GDP in ageing-related health and pension expenditure by 2040 will also need to be tackled" it said. They said “If public expenditure, the population and the economy continue to grow at historical rates, and absent policy changes or individual responses, net public debt will continue to rise unsustainably”. The county cant afford to keep paying superannuation!
Although NZ Treasury continue to voice similar concerns about the affordability of NZ, successive Governments have failed to address this growing issue. With the average duration of a person performing the role of Prime Minister being just under 3 years (1856 – 2021), and the propensity of the successive Prime Ministers to regularly “change their mind”, the eligibility age of superannuation could change at any time.
You need to be ready for this change and know what impacts this could have on your lifestyle in retirement. While the age may not change, it could become means-tested, a wealth tax could be introduced, the rate could be reduced or other eligibility rules could be changed (e.g. available to Citizens only (not Residents), you must be in the country for 365 days per year (so it stops if you travel overseas) or it is abated if you continue working past 65 (like other current benefits).
It is already common knowledge that superannuation is insufficient for most people to have an enjoyable lifestyle in retirement. For many it is the only source of income they have in their retirement as they failed to plan (and failed to save). Imagine the impacts it could have on your retirement if it was reduced further. You now have the opportunity to plan for your retirement, and determine what changes to the superannuation eligibility rules or rates may have on your retirement. We have done the hard work for you and created a free planning spreadsheet to model the financial impacts of Government changes on your retirement.
Remember, any Government can change the rules at any time. You need to plan for and look after your own wellbeing in retirement – as no one else will.
Download our free retirement planning spreadsheet and take control of your retirement.
The latest report suggested the need for reforms had increased because government debt was rising substantially.“an expected rise of nearly 3% of GDP in ageing-related health and pension expenditure by 2040 will also need to be tackled" it said. They said “If public expenditure, the population and the economy continue to grow at historical rates, and absent policy changes or individual responses, net public debt will continue to rise unsustainably”. The county cant afford to keep paying superannuation!
Although NZ Treasury continue to voice similar concerns about the affordability of NZ, successive Governments have failed to address this growing issue. With the average duration of a person performing the role of Prime Minister being just under 3 years (1856 – 2021), and the propensity of the successive Prime Ministers to regularly “change their mind”, the eligibility age of superannuation could change at any time.
You need to be ready for this change and know what impacts this could have on your lifestyle in retirement. While the age may not change, it could become means-tested, a wealth tax could be introduced, the rate could be reduced or other eligibility rules could be changed (e.g. available to Citizens only (not Residents), you must be in the country for 365 days per year (so it stops if you travel overseas) or it is abated if you continue working past 65 (like other current benefits).
It is already common knowledge that superannuation is insufficient for most people to have an enjoyable lifestyle in retirement. For many it is the only source of income they have in their retirement as they failed to plan (and failed to save). Imagine the impacts it could have on your retirement if it was reduced further. You now have the opportunity to plan for your retirement, and determine what changes to the superannuation eligibility rules or rates may have on your retirement. We have done the hard work for you and created a free planning spreadsheet to model the financial impacts of Government changes on your retirement.
Remember, any Government can change the rules at any time. You need to plan for and look after your own wellbeing in retirement – as no one else will.
Download our free retirement planning spreadsheet and take control of your retirement.