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Many New Zealanders are struggling to make ends meet. So thinking about retirement, which could be decades away, feels like a bridge too far. But that is exactly what we should be doing, says AUT’s Ayesha Scott in her analysis of retirement savings.
If average KiwiSaver balances are anything to go by, those in their 40s will be short by hundreds of dollars a week in retirement.
As Scott writes, “Put simply, these individuals face high household expenditure with kids at home and, if they’re homeowners, increasing interest rates on their mortgage repayments. If they’re paying rent, that’s likely to be going up as well.
This age group also has less time to benefit from KiwiSaver’s compounding returns before retirement and, despite NZ Super being seemingly guaranteed, retirement is far enough away for a little uncertainty to be prudent.”
It makes for bleak reading but there are things we can do to reduce the risk of having to work well past retirement age, Scott says.
As always, you’ll find more interesting articles in this newsletter and on our homepage, including this analysis by international relations scholar Robert Patman who examines New Zealand’s evolving foreign policy and role during this
week’s NATO leaders’ summit.
Many thanks for supporting our work, please feel free to share this newsletter with friends and colleagues. Until next time, take care and mā te wā.
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