At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
Planning for retirement can be challenging, especially for low income workers. Here are some simple steps to avoid common mistakes and ensure a secure retirement.
Know your retirement costs
Make a list of expenses. Write down everything you spend money on each month, like rent, food, bills, and health care.
Think about how your spending might change when you retire. For example, you might spend less on commuting, but more on food and medical costs.
Start saving early
Start saving early. Super important. Save regularly. Even small amounts can add up over time. Try and save a little bit from each paycheck. Just a little bit.
Use KiwiSaver
If you can, contribute to your KiwiSaver account. The government and your employer will also add money into it. Automatic savings. Set up an automatic transfer of your savings. into your savings account. You don’t have to remember to do it each time. Don’t rely on New Zealand superannuation alone.
Build extra savings
Besides your KiwiSaver, try to save in other ways as well, like a regular savings account or small investments.
Part time work
If possible, and if you want to, consider working part time, like a side hustle in retirement, to keep you covering your expenses.
Spread out your investments.
Don’t put all your eggs in one basket. You must have heard that before. If you have some savings, try to invest in different things like a savings account, KiwiSaver, and maybe even small investments in stocks or bonds.
Ask for help
If you’re not sure where to invest, talk to a financial adviser or use your resources from trusted community groups or financial services groups.
Keep up with inflation
Prepare for rising prices because we all know that happens. Keep up with inflation. Prices go up over time, so make sure your savings grow too. Investing in things that can increase in value, like certain stocks and bonds, will help.
Review your plan regularly
Check your savings and expenses every year to make sure you’re still on track.
Extra Tips
Some extra tips? Learn more about money. Try to learn more about saving and investing. Many community centers or libraries offer free workshops, or you can come and talk to us at SuperAdvice. Build an emergency fund. Save a little bit for emergencies, so you don’t have to use your retirement savings if something unexpected happens.
And they can happen. Keep an eye on how much you’ve saved and how close you are to your retirement goal.
That’s a wrap
By taking these steps, even small amounts of savings can grow over time. Helping you to have a more comfortable and enjoyable retirement.
If you need any financial help or advice please get in touch with us at Super-Advice.
