Are your savings on track?
You know how much you’re saving, but do you know what that might add up to by the time you need it? And have you any idea what income you might need to live on in retirement? It’s worth setting aside an hour or so to work it out. That way, you can adjust your plan if you need to and relax knowing you’ve got things well in hand.
On today’s rates, you can expect New Zealand Superannuation to provide around $16,000 a year after tax from age 65.* Compare this to your current income, and you’ll understand just how challenging it is to live on that amount of money if you don’t have savings of your own. As a general guide, most people need around two-thirds of their pre-retirement income each year to maintain a similar standard of living in retirement. It’s a tough ask. But you do have the benefit of belonging to one of the country’s most generously subsidised super schemes. Membership can go a long way to helping you retire comfortably.
*Based on the after-tax rate (M tax code) per person for a married, civil union or de facto couple where both partners qualify.
How much are you likely to want for regular spending in retirement?
Read Mary Holm's Rules of Thumb on retirement spending.
So what’s your retirement savings target?
Need to save more?
You can make regular voluntary contributions to UniSaver through payroll as deductions from your pay. There is no upper limit.
You can change your contribution rate using a Change of member details form.
Wondering how much your nest egg might be worth in time? The Rule of 72 is a rough calculation you can use to work out how long it will take to double your money. Divide 72 by the rate of return you expect. Let’s say 3% a year after tax and expenses and allowing for inflation. 72 ÷ 3 = 24. So at a fixed rate of return of 3% p.a., it would take 24 years to double your money.