Most people are unaware of the vast gulf between how much money the retirement they are looking forward to will cost them and the amount of money New Zealand’s Superannuation will provide.
This gulf, which Massey University researchers call the ‘retirement income gap’* is one that has to be taken seriously before you get anywhere near the age of retirement. The sooner the better, especially if you are hoping to have the same kind of lifestyle after you retire as you enjoy now. And let’s be honest, in most people’s minds, retirement looks like a whole lot more fun than the life they live now. Unfortunately, this is seldom the case. Instead, there’s a rude and frightening awakening when they realise their money may run out before they die. Retirement planning now has to take into consideration this stark and unwelcome truth. Superannuation may sound like a good idea, but it’s not good enough.
Thankfully, here at Britannia, we’ve created a product based on a proven international concept. Adapted to meet the needs of each individual retiree, we believe it will not only bridge the gap, but do so in a way that will benefit our clients.
The product is called the Lifetime Income Fund. But how does it work?
5 ways the Lifetime Income Fund will make your retirement even better
- The Fund combines investment and insurance
By combining investment with insurance, the Lifetime Income Fund uses insurance to provide you with a retirement income for life, no matter how long you live or what happens to interest rates or financial markets.
- The Fund converts lump-sum investments into regular income
The Lifetime Income Fund will turn your KiwiSaver savings, or any other retirement savings you may have, into a regular fortnightly, or four weekly, income. Regardless of what happens on the stock market, the amount of money paid to you, for the rest of your life, remains the same.
- The Fund gives you choices
You can choose whether you want to receive regular fortnightly or four weekly income payments and you can choose to redeem the balance of your investment at a time that best suits you.
- Your estate will receive the remaining balance of the money after you die.
Unlike other old-school annuity products which keep the balance for themselves after you die, the Lifetime Income Fund pays the balance of your retirement investment to your estate. In this way your family will have the benefit of your hard-earned savings.
- The Fund has a unique feature that protects your investment from market declines
On every anniversary of your membership in the Fund, your future retirement income is protected from market declines. Which is great news. Even better news is that it gains from any upward swings in the market. It’s an excellent feature and is sure to provide you with greater reassurance of how much your investment will provide once you start receiving your retirement income.
Here at Britannia, we have our client’s retirement at heart. There’s no point in working hard your whole life in order to provide for your retirement only to have it vaporise because of poor financial planning. Retirement planning is what we do best. No matter where you are in your life or career, you can never start too early when it comes to the correct financial planning regarding your retirement.
3 things you can do right now to see if your retirement is on the right track.
1. Use our Retirement Calculator to estimate what your retirement income might be.
2. Read our Lifetime Income Fund brochure.
3. Check out the New Zealand Retirement Expenditure Guidelines 2018 (published by Massey University) to get an idea of how much you might need in retirement over and above New Zealand Superannuation.
Most importantly, make an appointment with one of our expert financial advisers today to ensure your future financial situation is being taken care of correctly. The last thing you want is that retirement income gap yawning before you when you stop working. And you certainly don’t want to have to keep working until you die because you didn’t get expert advice today!
Retirement comes quicker than you think! Talk to us today.
*Massey University Retirement Expenditure Guidelines 2018 – get the full report here.
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