Few know Super pay
We might be looking forward to leisure time in retirement but most have no idea what retirement will cost.
A Nielsen survey, commissioned by the Retirement Commission, found 84 percent of 45 to 59 year olds didn’t know how much NZ Super a single person living alone would receive; 81 percent didn’t know how much a couple aged 65 or older would receive.
The survey also found 42 percent hadn’t calculated how much money they need to save for retirement.
Retirement Commissioner Diana Crossan says the lack of knowledge about NZ Super indicates people are not thinking enough about how they will manage when they stop working.
‘‘Almost all Kiwis are entitled to NZ Super at 65 but many don’t really know how much they will receive. What’s interesting is that the group we surveyed is not very far from retirement, yet a large number didn’t have a financial plan or any knowledge of how much money they would receive on NZ Super.’’
Ms Crossan says around 40 percent of today’s retirees live on NZ Super alone; $333 a week for singles living by themselves and $511 for a couple. Another 20 percent live on NZ Super and about another $100 a week of other income. She says Kiwis need to be aware of NZ Super rates so they can know how much they will need to afford the retirement they would like.
‘‘Our population is ageing rapidly and in 20 years’ time one in every five of us will be over 65. We are all getting closer to retirement so we need to start thinking about preparing ourselves financially.’’