My years of teaching people how to build a retirement nest egg through residential investment property have shown me that a high proportion of people have no real plan for ensuring their retirement years are secure.
This was confirmed for me in a recent article in the Christchurch Press where a survey found that more than half the people over 50 in New Zealand haven’t even tried to work out what they need in retirement.
Without intending to frighten you, I thought you might like to see this…
Let’s assume you could earn net of tax an amazing 6% per annum on your savings (better than most KiwiSaver funds over time.) Then you decide how much annual income you need after age 65 – for the sake of discussion, let’s assume you require $30,000 per annum.
Below is a little table which shows you how much you need to save every month, for every $1,000 per annum that you would require after 65 years of age.
||Monthly Savings Required per $1,000 of retirement income
So, if you are 50 years of age and haven’t started saving, the table above shows that for every $1,000pa you want in retirement, you need to save $41 per month immediately and so it follows that to have $30,000 per annum at age 65, you need to save $1,230 per month right now!
What does that do to your blood pressure? This emphasizes the huge importance on the need to have a plan to achieve this.
More about the plan on the blog soon, or if you cannot wait, speak with an Iron Bridge Property Investment Property Consultant today…
Download a PDF of this blog here.