Ideally, your retirement should be a new life experience that will be enjoyable, leisurely, and recreational with fewer stresses and worries than ever before. However, for some it means a reduction in income which impacts on their financial ability to do the things they have been looking forward to like take holidays, join clubs, dine out, buy things for the home or garden. For some, the basic income provided by the New Zealand Superannuation only allows them to “get by”. Who knows how long there will even continue to be a retirement income provided by the Government.

Would the New Zealand Superannuation be sufficient to allow you to continue to do the things you enjoy doing? Current after-tax rates of New Zealand Superannuation:

Single (living alone)	$249.09 a week
	$12,952 a year (approx)
Single (sharing)	$229.93 a week
	$11,956 a year (approx)
Couple (both qualify)	$383.22 a week for both
	$19,927 a year (approx)
Couple (only one partner qualifies*)	$365.40 a week
	$19,000 a year (approx)
Married person (choosing not to 'include' a spouse who doesn't qualify*)	$191.61 a week each
	$9,963 a year (approx)

Source: Ministry of Social Development. Effective 1 April 2004. All taxed at M code, net rates.

If you don’t want to rely on the government as your only source of income when you retire, then you should consider a retirement savings scheme. The sooner you start, the more you will have available to you when you retire – but it’s never too late to start!

With the effect of compounding returns, your regular savings can really work for you and grow into a lump sum which will be available for you to use upon your retirement. The lump sum you accumulate between now and your retirement can be used to generate an income to supplement your NZ Superannuation. The bigger the lump sum you have, the larger your income will be.

There are lots of things to consider when establishing your retirement savings plan. We can help you to put something in place that you can afford and that will work for you

KIWISAVER - call us to chat about KiwiSaver - Is it right for you? What are the benefits? Which scheme is right for you? How do you sign up?