Kiwisaver: Is 65 the most appropriate age to access your retirement savings?
Food for thought. Under the Kiwisaver system you can’t access your funds until 65 years of age, although there are exceptions such as first home buyers, those leaving the country permanently and applications brought about by hardship or sickness.
Statistics New Zealand indicate that the average lifespan currently is 79 for males and 83 for females (presumably not accounting for Covid 19) which suggests that you’re going to need those Kiwisaver funds for at least 15 years beyond 65. And you will need those funds; rest homes, retirement villages and the inevitable medical expenses aren’t cheap. For those lucky enough to own homes, liquidating those assets can contribute too, assuming you don’t mind spending the kids inheritance.
Some years ago my wife and I were talking about this subject. She is Australian and as such had the luxury of retaining the conditions of her Australian Super fund when she transferred to Kiwisaver, so she gets to access her savings at 60 rather than 65.
Then the conversation became a bit broader. We started thinking about retired friends and associates and their quality of life and here’s the thing - The number of healthy, happy octogenarians we know is way smaller than Statistics NZ suggest. In fact, as we recalled friends we’d known, it dawned on us that a significant majority had died between 63 and 67 years of age. So they either never retired or popped their clogs within two years of retirement.
Obviously there are exceptions. We know several people in their mid-eighties who are fit and healthy with a great lifestyle (two of our “aunties” can consistently outwalk/outrun us pathetic fifty -somethings, much to our embarrassment). At the other end of the scale, we both know people who have died suddenly and unexpectedly in their late 40’s or early fifties, largely due to previously undiagnosed health issues.
So is 65 really the appropriate age to access Kiwisaver? Do we want to be working at that age?
Our conclusions were to budget for semi-retirement at around 60 (we’re both professionals so can potentially gain part time or casual contracts to keep us occupied) and slightly reduce our Kiwisaver contributions to create a “living for today” fund, so as to be able to afford to travel/holiday, etc and create memories whilst we are still are healthy and able.
Your thoughts?
It’s Riddle Time – You Might Need an Extra Cup of Coffee!
Nobody has ever walked this way. Which way is it?
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Poll: Do you think NZ should ban social media for youth?
The Australian Prime Minister has expressed plans to ban social media use for children.
This would make it illegal for under 16-year-olds to have accounts on platforms including TikTok, Instagram, Facebook and X.
Social media platforms would be tasked with ensuring children have no access (under-age children and their parents wouldn’t be penalised for breaching the age limit)
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Do you think NZ should follow suit? Vote in our poll and share your thoughts below.
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84.7% Yes
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13.9% No
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1.4% Other - I'll share below
Stunning Outdoor Transformation – Before & After"
Check out this incredible project where we tackled everything from agapantha removal and walkway cleanup to concrete installation and fresh garden beds! Our team also added some beautiful timber edging, riverstone accents, and gave the fence a brand-new look with fresh paint. We love seeing the difference a well-planned makeover can make!
#Landscaping #GardenMakeover #BeforeAndAfter #OutdoorLiving #PropertyEnhancement #ConcreteInstallation #TimberEdging #FencePainting #GardenTransformation #BobJonesLandscaping