Take a reality check on your retirement
by Brent Smith
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.
The below 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 and 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. Property investment is one way you could achieve this. Contact our team today to learn more.
