Talk Money: November 9, 2015

(Paul Henry)
(Paul Henry)

The gap is growing between the cost of living in retirement and the amount people receive in New Zealand Superannuation payments, a new report says.

The Westpac Massey Fin-Ed Centre's 2015 Expenditure Guidelines report says it is important that people start saving for their retirement, no matter whether they are in their 20s or just a few years from retirement.

The study found that a single person living in a city faces a shortfall of $115 per week if they are living a no-frills lifestyle.

If they want some treats, like sirloin steak, or a nice meal out with friends, they face a $379 per week shortfall. If they live in a provincial area they face an even larger shortfall of $407 per week.

The only group that can typically get by on the pension are couples living in metropolitan areas who live a no-frills lifestyle.

How much you need to save depends on the lifestyle you want to live.

There is a handy savings calculator on the Sorted website.

Watch the video for the full Talk Money segment.