Fig­ure put on re­tire­ment

Central Leader - - LIFESTYLE & LEISURE - ROB STOCK

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.’’

SUP­PLIED

For most re­tirees, NZ Su­per is not enough to live on, says Claire Matthews.

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