Retirement planning ‘bigger than me’, couples say
Glenn and Robyn Taylor are planning together for retirement.
That’s not unusual for married couples, and yet KiwiSaver has been built around the idea of individuals saving alone.
KiwiSaver was, in the words of Massey University money expert Pushpa Wood, developed by ‘‘white, middle-class Pakeha males’’ with little regard to the concept of collective family wealth.
But KiwiSaver provider Kiwi Wealth aims to change that, and has developed an online calculator letting couples plan together.
It will launch publicly in May or June, and the Taylors are among 2000 people to do prelaunch testing.
‘‘It just makes sense for us, given that the rest of our financial lives are intertwined,’’ Glenn said.
That included their everyday banking and mortgage, and he said: ‘‘Hopefully one day we are going to retire together as well.’’
Taylor is a manager in the furniture retail industry. He got serious about saving as a result of overhearing the conversations of retirees shopping for furniture, many of whom were struggling to make ends meet.
Kiwi Wealth’s Ramesh Naran said research indicated the demand for a couples’ KiwiSaver tool was mainly from older, established couples.
‘‘What our members, especially those aged 50-plus, told us was ‘Hey, planning for retirement is something that’s bigger than me.’’’
When setting savings goals, Kiwi Wealth’s Future You calculator lets people select a ‘‘no frills’’ (budget), ‘‘flexible’’ (comfortable) or ‘‘deluxe’’ (luxury) lifestyle. The lump sums required by age 65 to achieve those lifestyles are based on Massey University estimates.
As the cost of living for a couple was less than for two individuals, the savings goals for a couple would be lower. However, if people did not stay together, they might have to up their savings rate.
Kiwi Wealth had further plans to develop its calculator.
‘‘Eventually, we intend the tool to also enable members to add in other retirement savings such as term deposits, share portfolios and property, to provide a combined view of a couple’s progress toward their retirement income goals,’’ Naran said.