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Although NZ superannuation was designed to provide a foundation income for retirees, for 40 percent it is their only income.
Currently it is just under $800 per week after tax for a couple and, as the Retirement Commission’s personal finance lead Tom Hartman notes, some people pay more than that in rent. At the same time, Hartman says it’s generous by international standards – to generate $800 per week by drawing down on a nest egg, he calculates that you’d need around half a million dollars invested. “There’s a risk that you may outlive your money, and that is taken care of by NZ Super because it’s guaranteed for as long as you live,” he says.
Filling that gap between living expenses and super requires planning – the gap can be filled in many ways such as work, Kiwisaver or other savings and investments or downsizing a property. Hartman says the commission’s website Sorted.org.nz helps people work all this out, serving more than one million people annually. Their advice is independent, impartial and free.
