New Zealanders are living increasingly longer lives.

While that’s wonderful news for most of us, it can mean we need to fund a few more

retirement years than our grandparents’ generation might have needed to.

Here are some things to think about if you’re setting up your retirement savings plans.

How much longer are we living?

Life expectancy at birth has increased a lot for recent generations.

Stats NZ data shows that someone born in 1950 had life expectancy at birth of just over 67 years for a male and just over 71 years for a female. That has increased to more than 80 years for males born between 2022 and 2024 and more than 83 for females.

Stats NZ noted that if life expectancy rates continued to increase over time, the actual lifespan of someone born now would be longer than the current estimate.

What does that mean for your retirement?

This means that many people will have retirement years that last two or three decades.

For most of us, that means a bit of extra saving and investing to help ensure that our money lasts as long as we do.

While NZ Super is a help for most retirees in this country, data shows that people tend to spend more than the amount the pension provides. That’s particularly true in the earlier years of retirement, when many people want to spend time travelling or enjoying life with friends and family.

As you plan your retirement, you might like to think about the sorts of things you’d like to spend your time doing, and what financial backing you might need to do them.

How might retirement planning differ for a longer horizon?

Your approach to retirement planning may need to evolve as life expectancy increases.

In the past, it was common for people to move most of their investments into conservative assets as they approached retirement. While that approach can still suit some investors, others may benefit from maintaining a level of growth exposure to help their savings continue working for them throughout a longer retirement.

Finding the right balance between stability and growth depends on your goals, timeframe, and comfort with risk. A SHARE adviser can help you create a retirement investment strategy that’s tailored to your circumstances and designed to support you through every stage of retirement.

Ready to talk?

If you’d like to run through the numbers on your retirement plans, give the team at SHARE a call. We’re investment experts who can help you review your options and develop a strategy aimed at giving you the best chance of making your money last as long as you need it, and to make the most of your well-deserved retirement years.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.