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Reality check on retirement

Reality check on retirement

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. 

Starting Age  Monthly Savings Required per $1,000 of retirement income 
30   $9
35                                     $12
40 $18
45 $26
50 $41
55 $74
60 $170

 

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.  

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