Plan for Retirement
Why plan for retirement?
'Saving for retirement is like donating to a stranger,' a woman in her 30s told us. Except it's not. You will still be you at 50, 60, 70 and beyond – saving for retirement is donating to your future self.
We know that planning for retirement is hard. Who’s got time to think about tomorrow when today is so busy? How do I know what the future will hold? How much will I need? It can seem overwhelming, but when you break it down piece by piece, then it all starts to make sense, and you will start to make progress.
A young New Zealander we spoke to made this great observation:
'I feel like there’s a whole lot of other things competing for my resources, attention and concerns – tomorrow competes with today for our time and it’s all reasonably overwhelming even now, let alone in 40 years' time.'
Having choices
Someone once said: ‘Being rich isn’t about having money, it’s about having choices.’
Having choices puts you in charge of your own fate, and it means you’re not relying on anyone else. You don’t have to be rich to make choices, but you need to have a plan, and you need to be able to manage the unexpected.
Saving for Now Vs. Saving for Retirement: Todd Talks About Competing Priorities
Saving for Now Vs. Saving for Retirement: Todd Talks About Competing Priorities
Do You Have Enough Money?
Making decisions
Sometimes little choices have big consequences.
A 17 year old doesn’t pay a phone bill, which impacts their credit rating, which stops them getting a bank loan for their car, which means they end up going to a payday lender, which means they pay three times the amount for the car, which means they can’t save for a house deposit because they’re still paying off the car three years later. That 17 year old reaches 30, and that unpaid phone bill of $100 dollars has cost thousands, held them back in achieving life milestones, and affected how prepared they'll be for retirement.
Little choices can and do have big consequences – they just don't feel like it at the time.
Making Saving Easier
Making Saving Easier
Income for life
As we're living longer, we need to plan for retirement to make sure our savings and investments last as long as we do.
There are many options to consider, depending on your circumstances. NZ Super helps, but if you want to have more choices in your retirement years, you'll need to have other savings and investments that will contribute to your future income.