What does KiwiSaver mean for you?
A recent survey shows two-thirds of people who use KiwiSaver aren't sure whether NZ Super is enough to retire on. The survey of 2200 people is part of a three-yearly review of retirement income policies.
According to the Westpac Massey Fin-Ed Centre's Retirement Expenditure Guidelines, an urban individual is currently spending $489.77 per week for a ‘no frills’ retirement.
The current superannuation for singles is $374.53 per week. Is this enough for you to live on?
"The worrying thing is just on 50 percent of non-members are relying on NZ Super or don't know how they are going to fund their retirement," says the Commission for Financial Capability general manager of Investor Education, David Boyle.
In order to live a life of luxury, you need $754.03 per week of spending money. In today’s dollars, you will need at least $303,041 in KiwiSaver by age 65 in order to achieve this.
KiwiSaver is canvasing a number of options to help you achieve your financial goals, including increasing the range of contribution options and reducing the contributions holiday period from five years to one.