So how is everyone saving money for old age?

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Forums › Finance and wealth management › So how is everyone saving money for old age?

tripp

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#233793 3-May-2018 11:28

Just want to ask the question...

Are you doing it via kiwisaver (and if so how much %) or are you using your own savings account with a bank/3rd party? Or are you in the frame of mind you won't make it to 65 so spending it all now?

Currently I am doing mine buy kiwisaver at the max % (8% + 3%, 3% is taxed however). I also keep a smaller savings account around for buying toys.

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#2007026 3-May-2018 11:32

Hmm...I'm not

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tripp

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#2007027 3-May-2018 11:33

Handsomedan:

Hmm...I'm not

Is that because you can't afford too or just not worried about it?

kryptonjohn

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#2007029 3-May-2018 11:37

Own my own business so KiwiSaver has no freebie benefit to me. So focused on having no debt rather than saving. Massively over invested in house as a result but once the kids bugger off I expect that chunk of land and house space in Remuera can be replaced by a smaller place and some cash to retire on. If it were up to me I'd move out of Auckland and could live like landed gentry up north somewhere maybe near Whangarei or Tutakaka and while away my years fishing and golfing. Don't think SWMBO will allow it though.

Also have a long term investment in a forest of all things, that should harvest around retirement time.

It's pretty hard for people to save these days but I still think it can be done with some sacrifices.

tripp

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#2007034 3-May-2018 11:44

kryptonjohn:

Own my own business so KiwiSaver has no freebie benefit to me. So focused on having no debt rather than saving. Massively over invested in house as a result but once the kids bugger off I expect that chunk of land and house space in Remuera can be replaced by a smaller place and some cash to retire on. If it were up to me I'd move out of Auckland and could live like landed gentry up north somewhere maybe near Whangarei or Tutakaka and while away my years fishing and golfing. Don't think SWMBO will allow it though.

Also have a long term investment in a forest of all things, that should harvest around retirement time.

It's pretty hard for people to save these days but I still think it can be done with some sacrifices.

I have given up owning a place in auckland (single and no kids) I could not afford the mortgage on my own. My end goal will be to move out of auckland when it's time and live off the savings (kiwisaver) and super and rent a place somewhere.

alasta

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#2007035 3-May-2018 11:45

I put 3% in Kiwisaver and about another 13% into a non-Kiwisaver managed fund. Most people need to save much more than 3% of their income, but there is no point in putting more than 3% in Kiwisaver because there is no further kickback beyond that level.

I made a small property investment last year but probably bought too close to the market peak so it looks like it will ultimately return about the same as what I'm getting from managed funds.

MikeB4

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#2007036 3-May-2018 11:47

Using a mix of KiwiSaver, private superannuation, general savings, home ownership.

Here is a crazy notion, lets give peace a chance.

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kryptonjohn

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#2007038 3-May-2018 11:49

tripp:

kryptonjohn:

Own my own business so KiwiSaver has no freebie benefit to me. So focused on having no debt rather than saving. Massively over invested in house as a result but once the kids bugger off I expect that chunk of land and house space in Remuera can be replaced by a smaller place and some cash to retire on. If it were up to me I'd move out of Auckland and could live like landed gentry up north somewhere maybe near Whangarei or Tutakaka and while away my years fishing and golfing. Don't think SWMBO will allow it though.

Also have a long term investment in a forest of all things, that should harvest around retirement time.

It's pretty hard for people to save these days but I still think it can be done with some sacrifices.

I have given up owning a place in auckland (single and no kids) I could not afford the mortgage on my own. My end goal will be to move out of auckland when it's time and live off the savings (kiwisaver) and super and rent a place somewhere.

In your situation I don't think owning property in Auckland is such a great idea anyway even if you could manage it. It's over priced.

Handsomedan

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#2007039 3-May-2018 11:51

tripp:

Handsomedan:

Hmm...I'm not

Is that because you can't afford too or just not worried about it?

It's a mix of both, really.

I like my dosposable income but know I should save.

The way Kiwisaver is done at my work, means that I'd effectively be contributing my portion, plus my employer's portion and I simply can't afford that.

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acetone

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#2007047 3-May-2018 12:06

What do you mean by "3% is taxed", everything you put into kiwisaver is taxed.

tripp:

Just want to ask the question...

Are you doing it via kiwisaver (and if so how much %) or are you using your own savings account with a bank/3rd party? Or are you in the frame of mind you won't make it to 65 so spending it all now?

Currently I am doing mine buy kiwisaver at the max % (8% + 3%, 3% is taxed however). I also keep a smaller savings account around for buying toys.

mudguard

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#2007062 3-May-2018 12:22

I'm saving just over 50% of my net income. It's not really sustainable long term, but it's only for another 18 months. But it's nice to know I can exist and still save. The goal is a house, and if that comes off, then knock the mortgage off as quick as possible. And then worry about retirement.

I'll still contribute to kiwisaver in the meantime though.

Item

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#2007072 3-May-2018 12:34

My wife and I each do 8% + 3% (4% from my employer) Kiwisaver and we are putting $1000 a month or so into diversified Index-linked funds. Looking to double or triple that last one ASAP and continue paying of the Auckland mortgage etc.

We are early 40s now and would like to retire around 65 if possible, so need to knuckle down and hope that we don't have a major negative life impacts or job issues for the next 25 years if we have any hope of achieving that!

Given that although we have a fair whack on the mortgage, we also have a good amount of equity, the idea would be to sell up on retirement and move out something smaller in the countryside and re-invest any profit into retirement funds.

Also, although it is never nice to talk about, it is likely that we would be getting some inheritance from both sides parents over the next 15-25 years which would go back into investment and clearing mortgage etc.

We are fortunate not to have kids, so at least what we have spare can all go back to the retirement fund!

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#2007073 3-May-2018 12:37

At the rate things are inflating, saving is the worst thing you can do over the projected long term. Investing something is better. Kiwisaver is investing as long as you're not on the bottom two risk profile.

MikeB4

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#2007080 3-May-2018 13:00

Batman: At the rate things are inflating, saving is the worst thing you can do over the projected long term. Investing something is better. Kiwisaver is investing as long as you're not on the bottom two risk profile.

Our current rate of inflation is 1.1%, saving should still be part of the overall planning.

Here is a crazy notion, lets give peace a chance.

Batman

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#2007082 3-May-2018 13:14

MikeB4:

Batman: At the rate things are inflating, saving is the worst thing you can do over the projected long term. Investing something is better. Kiwisaver is investing as long as you're not on the bottom two risk profile.

Our current rate of inflation is 1.1%, saving should still be part of the overall planning.

don't know. I was saving up for a house, it was 500k in 2015. that house was sold that resold in 2017 for 850k. how many % is that?

acetone

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#2007083 3-May-2018 13:15

I must be missing something but I don't quite understand what your +3% is.

Are you saying that you get 8% taken out of your pay as your contribution and then your employer puts in 4% and then you manually transfer another 3% of your pay in each cycle?

Item:

My wife and I each do 8% + 3% (4% from my employer) Kiwisaver and we are putting $1000 a month or so into diversified Index-linked funds. Looking to double or triple that last one ASAP and continue paying of the Auckland mortgage etc.

We are early 40s now and would like to retire around 65 if possible, so need to knuckle down and hope that we don't have a major negative life impacts or job issues for the next 25 years if we have any hope of achieving that!

Given that although we have a fair whack on the mortgage, we also have a good amount of equity, the idea would be to sell up on retirement and move out something smaller in the countryside and re-invest any profit into retirement funds.

Also, although it is never nice to talk about, it is likely that we would be getting some inheritance from both sides parents over the next 15-25 years which would go back into investment and clearing mortgage etc.

We are fortunate not to have kids, so at least what we have spare can all go back to the retirement fund!

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