Can I afford to retire?

Are you dreaming of retiring? Maybe you’re tired of the daily grind and want to spend more time with your loved ones. Or perhaps you’re looking forward to traveling the world and experiencing new cultures. Whatever your reasons may be, the question you’re probably asking yourself is, “Can I afford to retire yet?”

How much do you need in retirement?

Assessing your lifestyle needs and expectations is the first step to answering this question. Take a close look at your current expenses and determine what expenses will carry over into retirement. Will you still have a mortgage or rent to pay? What about healthcare costs? How will your expenses change over your retirement years? These are all important factors to consider when calculating your retirement income needs.

How much retirement savings do you have? 

Once you have a clear understanding of your expenses, it’s time to evaluate your retirement savings. After accounting for NZ Superannuation, do you have enough saved to cover your expenses for the rest of your life? A good rule of thumb is to have at least 25 times your annual expenses saved before retiring. 

Options to improve retirement

If you find that you don’t have enough saved to retire early, don’t worry. There are still options available to you. One option is to work part-time during retirement. This can not only provide extra income but also help you stay active and engaged in your community.

Another option is to reevaluate your lifestyle and make adjustments to your expenses. Downsizing your home, cutting back on unnecessary expenses, and living a simpler lifestyle can all help stretch your retirement savings further. Reverse mortagages are also an option some might want to consider – although there can be drawbacks.

Helping clients make retirement decisions easier

We’re here to help our clients make financial decisions in retirement by giving them Spending and Investment Plans. Whether it’s calculating if they have enough to retire already, or to calculate how much they can spend each year – we can help. It isn’t rocket science but it does help to have someone in your court who has done this many times before with other clients. Add to that the use of sophisticated financial modelling software so you can see for yourself how long your money will last. Combined with solid and diversified investments that will make your money go further and work better throughout your retirement. 

It’s important to assess your lifestyle needs and expectations before making the leap. By evaluating your expenses and retirement savings, you can determine when retirement is feasible for you. And if it’s not, there are still options available to help you achieve your retirement goals. So, start planning now and make your retirement dreams a reality.

Your better financial future starts here

Your better financial future starts with a conversation with one of our financial experts. We offer 30 minutes free consultations to help give you peace of mind that we can help you where you need it most.
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Richmond office: 278 Queen Street, Next to the Library
Phone: 03 544 1428
Motueka office: 217 High Street, Opposite Elevations
Phone: 03 528 4184
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