Retirement savings

[Stylo]

I read today in the 'Press' that 68% of Households in NZ would not be able to cover a $500 emergency expense based on a Kiwi Saver survey. 'Quoted'

Wondering how the 60 plus group are getting on as they head for the gold card and beyond.

[jellywrestler]

why? how many have just learnt to just extend their credit making no allowances for anything changing overnight?

[BMWST?]

Just fine thank you.22.7 percent of the population is over 60 yrs old.

[Laava]

That sounds like dodgy stats to me. $500 is a small amount. A weeks rent, a weeks food bill. A weeks worth of other expenses. $5000 is a bit more believable.

[R650R]

That sounds like dodgy stats to me. $500 is a small amount. A weeks rent, a weeks food bill. A weeks worth of other expenses. $5000 is a bit more believable.

$500 ain’t no small amount t on pension. With increases in rates/food/power/insurance many have no safety margin left, especially if any on going health problems/treatment costs etc.

[pete376403]

72, no debt, house mortgage-free, a bit of savings, two bikes in the shed. Life could be worse. Gold card doesn't do much for me (I think I got a discount on a haircut, once)

[pritch]

I read today in the 'Press' that 68% of Households in NZ would not be able to cover a $500 emergency expense based on a Kiwi Saver survey. 'Quoted'

Wondering how the 60 plus group are getting on as they head for the gold card and beyond.

That is particularly unoriginal reporting by the press. The same result was obtained by a similar survey in the US a year or two back. Now it seems similar surveys are conducted in the US more or less continually with results that vary only slightly.

[neels]

Not hugely surprising, there are a lot of people who rely entirely or almost entirely on govt super.

Something else I saw recently was the rather small amounts people have in their kiwisaver, in part due to the relatively short time it's existed for, but also due to the low rate of required contribution.

The data showed the following average balances for age groups at 31 December, 2024.

Under 17: $3286
18 to 25: $10,028
26 to 30: $19,803
31 to 35: $24,075
36 to 40: $30,437
41 to 45: $39,641
46 to 50: $50,192
51 to 55: $58,940
56 to 60: $65,006
61 to 65: $69,104
66 to 70:L $64,929
71 to 75: $66,634
76 to 80: $66,505
81 to 85: $84,876
86 and over: $174,842

[Stylo]

Not hugely surprising, there are a lot of people who rely entirely or almost entirely on govt super.

Something else I saw recently was the rather small amounts people have in their kiwisaver, in part due to the relatively short time it's existed for, but also due to the low rate of required contribution.

The data showed the following average balances for age groups at 31 December, 2024.

Under 17: $3286
18 to 25: $10,028
26 to 30: $19,803
31 to 35: $24,075
36 to 40: $30,437
41 to 45: $39,641
46 to 50: $50,192
51 to 55: $58,940
56 to 60: $65,006
61 to 65: $69,104
66 to 70:L $64,929
71 to 75: $66,634
76 to 80: $66,505
81 to 85: $84,876
86 and over: $174,842

Those figures look about right. Interesting how the 86 years and older have so much more stacked away. Kiwisaver started 18 years ago in 2007. I was always surprised by the low uptake on it. Why would you turn away free money from the Government every year ?

I have a mate who's in his late 60's. Used to work on the rigs in the North sea. On the Super now, of course. Asked how much he had in the bank last weekend. $117.

[jellywrestler]

I have a mate who's in his late 60's. Used to work on the rigs in the North sea. On the Super now, of course. Asked how much he had in the bank last weekend. $117.

Does he expect us to support him now despite him earning overseas and blowing it all?

[Stylo]

Does he expect us to support him now depiste him earning overseas and blowing it all?

No expectations at all. He'll support himself. If he was a bludger he wouldn't be my mate.

Some people are better than others at looking at the big picture. Just saying.

[BMWST?]

The reality is that a large number of people can barely live paycheck to paycheck. Any out of the ordinary expense is hard to manage,They cant(dont) save any money

[R650R]

Those figures look about right. Interesting how the 86 years and older have so much more stacked away. Kiwisaver started 18 years ago in 2007. I was always surprised by the low uptake on it. Why would you turn away free money from the Government every year ?

I have a mate who's in his late 60's. Used to work on the rigs in the North sea. On the Super now, of course. Asked how much he had in the bank last weekend. $117.

Simple arithmetic dear Watson.Contribution is based on 4% of your income and as you age most people earn more due to upskilling and moving up in job positions. Also old and wise may have made extra contributions once mortgage was cleared.
Those young people will do alright though, 10k at 18 is a good head start with power of compounding interest over next 47 years plus whateverctheyvearn during that time.

$400 month (that includes employer matched 4%) at fixed salary of 60k at an average return of 6% +/-2%variations comes back as 1.3 million in compound calculations.

I turned down “free “ govt money initially because I wanted to spend my 4% on other things and distrusted banks and govt due to previous instances worldwide where govts/bank failures/pvt equity had caused super schemes to fail or be pillaged.That was before the current cost of living increases and devaluation of our purchasing power.
The world has changed a lot in that time and hopefully young people are getting a good education of the importance of it all.

[Stylo]

Simple arithmetic dear Watson.Contribution is based on 4% of your income and as you age most people earn more due to upskilling and moving up in job positions. Also old and wise may have made extra contributions once mortgage was cleared.
Those young people will do alright though, 10k at 18 is a good head start with power of compounding interest over next 47 years plus whateverctheyvearn during that time.

$400 month (that includes employer matched 4%) at fixed salary of 60k at an average return of 6% +/-2%variations comes back as 1.3 million in compound calculations.

I turned down “free “ govt money initially because I wanted to spend my 4% on other things and distrusted banks and govt due to previous instances worldwide where govts/bank failures/pvt equity had caused super schemes to fail or be pillaged.That was before the current cost of living increases and devaluation of our purchasing power.
The world has changed a lot in that time and hopefully young people are getting a good education of the importance of it all.

I know how it works. I'm lucky, I was able to retire early.

I meant what was interesting, looking at the figures, was the spike of over 100% in the average savings balance of a 86 years or older person compared to someone in the 81-85yo bracket.