"You don't run out of money, you run out of lifestyle."
Our NZ retirement system provides a backstop called NZ Super, the fortnightly payment (regardless of wealth or need) from the taxpayer's pocket. The only thing you need to do is reach the age of 65 (current government proposal to increase to 67).
If you can continue your current lifestyle on $20,000pa before tax, then you can do nothing. You are going to be ok at age 65-67, until these rules change in the future.
But if like me, you cannot live on this amount, or know that this hand out will most likely not be available when you reach age 65-67 in the future, then you need a plan. As do nearly all other developed countries, NZ only gives a taxpayer-funded retirement pension to members of the community, who are below the poverty line and really need it, which I strongly agree with.
Do you want to rely on a taxpayer-funded retirement pension?
Be aware that, your train is leaving the station. It is called saving for your family's lifestyle spending in retirement, so that you are not beholden to changing government policies. In NZ, this is called KiwiSaver. Although most young Kiwi's have one, they don't know how to use it very well or how to project its possibilities. Used well, however, with good research, it can grow very fast and build up money for their future.
Talk to us about your future plans.