Are you scrimpin?

Date: 5th July 2011

Kiwis continue to be the trans-Tasman poor cousins come retirement. While Australians’ retirement savings are building into substantial sums, Kiwis are either dithering over whether to join KiwiSaver or simply not saving enough.

At current rates, many Kiwis will have just a few thousand dollars a year over their New Zealand superannuation, which won’t fund the lifestyle many are anticipating.

Changes to KiwiSaver in the May Budget, with employers contributing more, are likely to see KiwiSaver pots increase. Even so, financial advisers say it may not be enough.

Research by the Retirement Commission found once owner-occupied property was excluded, people were saving on average 5 per cent of their gross income. Australians are estimated to have on average more than A$56,000 ($72,000) of superannuation funds, whereas New Zealanders have about $5500 each in KiwiSaver.

Australian employers pay 9 per cent of employees’ wages into super funds.
“Most [Kiwi] people cross their fingers and hope by the time they get to retirement it is enough,”…

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Posted in: kiwisaver, Latest News, retirement