Is saving for retirement on your mind, or are you putting it in the ‘one day basket’?

It turns out, few New Zealanders across all age groups actually plan for their retirement years.

According to the Commission for Financial Capability Barometer 2018-2019 report, 65 per cent of respondents said they didn’t think much, or at all, about how much money they would need in retirement. Only 5 per cent had a specific plan to save or invest money, while as many as 79 per cent of respondents didn’t know how much they would need to save.

There can be many reasons why this is the case. Some don’t know where to begin, they are not sure how retirement planning works, or think they don’t earn enough money to save. If you’re young, retirement may seem like a lifetime away compared to other goals you might have – like buying a house, starting a family, or moving up the career ladder. And if you’re 50-plus years old, you may think it’s too late, anyway.

But keep this mind: ready or not, retirement is coming at some point, and planning for it is critical at any stage of life. The key thing is to start – the earlier, the better. Here are some common goals that retirement planning can help you achieve.

A new (or rediscovered) hobby

Have you always had a passion for art and crafts? Dreamed of renovating a boat and sailing into the sunset? Do you have a book in your heart that you’ve always been meaning to write, but never found the time?

Time is exactly what retirement pays you in lieu of wages; it’s about making space for those new and rediscovered hobbies that make life richer. A well-planned retirement can help you enjoy all of this, and more, for as long as you need.

Quality time with the family

Is spending more quality time with your family and loved ones your main retirement goal?

Even if you’re not planning to spend a good chunk of your savings on international flights, it’s important to factor in other expenses. For example, you may want to help your children with babysitting, or take your grandchildren on trips. Your retirement savings need to cover day-to-day costs as well as the all-important extras you have in mind.

The trip of a lifetime

After a lifetime of hard work, it’s nice to have something to look forward to, and for some that’s a long, carefree holiday.

Picture yourself on a white beach, with your toes digging into the warm sand while listening to soft waves break against the shore. Or perhaps, globetrotting around Europe, snapping photos of centuries-old squares and enjoying the delicacies of the local cuisine.

If you’re dreaming of a little adventure, that ‘trip of a lifetime’ is worth saving for.

Early retirement

What if you could stop working earlier than age 65?

Retiring early (or being able to cut hours down to work part-time) requires a fair share of discipline, planning and budgeting, but depending on your financial circumstances, it may be achievable. Get in touch with our SHARE financial advisers to talk about your needs and goals.

We’re here to help

Once you’ve defined what your dream retirement looks like, putting a plan in place to make it happen is crucial. At SHARE, we’ve been helping thousands of Kiwis run the numbers, explore their options and grow their nest egg.

Remember, identifying your retirement goals is a good place to start. A proactive approach, combined with quality financial advice, can help clear the path to achieving those goals.

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 development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.