A joint survey by the Commission for Financial Capability (CFFC) and the Financial Markets Authority (FMA) published in August examined how well New Zealand’s older population (aged 50 or more) is planning for retirement.
It found that retirees who had some form of plan for their retirement were far more likely to enjoy the kind of lifestyle they wanted.
Other key findings include:
- Almost half of people over 50 years old have yet to figure out how they will reach their retirement goals
- 40% of people who have already retired did so without a financial plan for their retirement
- Only one in ten people over the age of 50 are certain they have enough money saved or invested to enjoy the lifestyle they want when they stop working
- Of those already retired, a quarter said they do not have the money to do the things they would like in retirement
- 54% of people approaching retirement have some form of financial plan. However the degree of planning varied, with only about a quarter having planned thoroughly
- 42% of non-retirees have calculated the regular expenses they would need to cover, and 34% have worked out how much they would need on top of NZ Superannuation to give them the lifestyle they wanted
- Only 24% of those surveyed had ever used a risk profile tool to help them think about what level of risk was appropriate for them.
David Boyle, CFFC general manager of investor capability, said the research shows that many people are leaving their retirement plans to the last minute.
“At 50-years-old, when you have potentially 15 years to go before you stop working, there’s still time to make a big difference to your lifestyle choices in retirement,” he said.
For full results click here.