Are we too busy today to consider our tomorrow?
By Gareth Grey – Authorised Financial Adviser, Britannia Financial Planning Ltd
This might be considered rather damning, but for most people, planning for retirement is something which generally gets put off ... often indefinitely!
Whilst we generally have good intentions to make preparations for our retirement, day-to- day matters like paying off debt or other more immediate things often get in the way. The question I hear repeatedly is “When is a good time to plan for retirement?”
Financial constraints like mortgage repayments can consume income in our early years, making planning for retirement almost unthinkable. So should you wait until the mortgage is paid off? If so, in my experience, this means retirement planning only becomes a priority around age 55 or even older.
A lot of my clients have some really good foundations in place for retirement – maybe KiwiSaver, a transferred UK pension, a rental property, health insurance, some savings and a good awareness of New Zealand Superannuation. However, what many people aren’t doing is drawing these building blocks together to create an overall plan to achieve the very best retirement.
Putting a retirement plan in place early is important because it will allow you to identify if there is a shortfall between what you have now and what you need to accumulate for a good retirement, as well as when to cash up any investments to pay for your new lifestyle. If a shortfall is identified early we can deal with it pretty painlessly. Leave it too late though and it could be an expensive exercise to sort out in the time remaining and it could impact your quality of life.
If you are interested in taking charge of your retirement planning and looking after your future, contact your adviser, or me, now on 0800 28 28 33 or GGrey@BFPL.co.nz.
Remember – a healthy 65 year old can expect to live another 25 to 30 years (or even more in some cases).
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