Figure put on retirement
People need just over $100,000 in savings at age 65 in order to be able to afford basic lifestyles in either Auckland, Wellington, or Christchurch, research from Massey University has found.
‘‘We estimate a single person living in Auckland, Wellington or Christchurch would need savings of at least $101,774 to make up the gap between superannuation payments and a basic level of household expenditure,’’ Claire Matthews from the Westpac Massey Fin-Ed Centre said.
Matthews said the gap between income and expenditure for retirees continued to shrink, but rising housing and household utility bills meant NZ Super payments still didn’t cover the costs of living for many retirees.
Matthews said costs like rates and power bills were unlikely to decrease any time soon, and the growing number of retirees renting rather than owning their own homes was also likely to ensure a continuing difference between the level of superannuation and most retirees’ actual expenditure.
While it’s never too late to start preparing for retirement, getting a head start on saving can really pay off.
‘‘If you start saving at 50, you would need to save $127 per week to achieve that by the time you turn 65. Starting at 40, and that reduces to $72 per week.’’
For most retirees, NZ Super is not enough to live on, says Claire Matthews.