So, you are thinking... when I want to stop working, I will need an income or assets that enable me to spend at the same pace as I do currently. The real question is how long will I need an income? People are retiring earlier these days and they are living longer. Unlike many earlier generations that were plagued by plagues, poor health and lack of medical advancement, this coming generation has a new set of challenges.
You are Expected to Die... What is the average and how many people buck the trend? What will life look like in your financial future, if you don't have a plan? SuperLife has a little life expectancy calculator that we found quite powerful. You should have a play with it, while you ponder how you are going to fund the years when you can nolonger work
With the best guess of 25 % of males living past their life expectancy, the only income that the majority of these people will have is a government-funded pension. Please note that most other developed countries have a means test for payments, designed to stop wealthy people, who don't need it, taking a taxpayer-funded handout. As the 'baby boomers' age and have more tax paying offspring, the voting population becomes younger and means testing will be introduced to save the government money. Don't worry. We have about 10 years before this is due, but currently we can all have $20,000pa taken from the yearly tax revenue - wealthy, or poor and disadvantaged.
If you would like to take these matters into your own hands, as the government wants you to do, using the method they have provided in the form of the NZ KiwiSaver System, then you will need a target and a product to get your there. Most people just grab a product without research and then pick one of the few funds on offer. There are much better ways to get ahead of the future.
Talk to our team about a personal goals plan.