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NZ retirees falling short
New Zealand retirees appear to be facing more challenges than many of their Australian counterparts, with new research revealing that the vast majority of NZ retirees are reduced to living of NZ Super alone after just 10 year’s of retirement.
The research, released by the NZ Financial Services Council, has revealed that most kiwi retirees use all of their savings and other assets within the first 10 years of their retirement, with the average person expected to be retired for more than 20 years.
The research has also estimated for the first time the total wealth New Zealanders expect to take into retirement finding that those over 65 and retired think they need $665 a week to live comfortably when, in reality, they have on average $437 a week.
Commenting on the research results, NZ FSC chief executive, Richard Klipin said this represented a considerable gap which was even bigger for those who don’t own their own home.
He said the findings had served to reveal the stark reality for many retiring New Zealanders, and it need to be understood that they were not a reflection of excessive spending but rather a need for greater education and advice prior to retirement.
The key findings of the NZ FSC research were:
- Nearly all older New Zealanders will be living on the New Zealand Superannuation pension alone after just 10 years.
- Almost half of those now aged 65+ say they would have liked more financial advice to improve their incomes in retirement.
- The $218 average after tax weekly gap between what the retired need to live comfortably and what they actually have, sends a message to those still working to make the most of opportunities to grow their wealth and increase their sources of income.
- New Zealanders aged over 65 are taking more than $632 billion in property wealth into retirement but that wealth is overwhelmingly concentrated in the family home.
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