NZ Superannuation alone won't fund a comfortable retirement

Young and old agree, New Zealand Superannuation alone won’t fund a comfortable retirement

FSC Media Release - On this International Day of Older Persons we should celebrate what the generations share rather than what divides us and learn from each other says Financial Services Council CEO Peter Neilson. 

The Financial Services Council has undertaken extensive polling on what a good retirement in New Zealand currently looks like and will look like in the future.  It will be releasing these findings over the next year.

“The results show different generations agree much more than disagree on some important issues,” said Mr Neilson.

For example, some 65% of all New Zealanders over 18 believe New Zealand Superannuation alone is insufficient for a comfortable retirement.  For those already retired 78% say New Zealand Superannuation alone is insufficient for a comfortable retirement.  New Zealand Superannuation for a single person living alone is $374.53 a week after tax and for a couple where both partners qualify is $576.20 a week after tax.
 
“Older New Zealanders already living on NZ Super know you need to save if you are to achieve a comfortable retirement.  Most future retirees will have some KiwiSaver savings to fund a better retirement. 
 
“Overseas research has revealed most retirees regret not having received more education and not having saved more for their retirement.  Younger New Zealanders should take the time to ring your grandparents today,” concluded Mr Neilson.
 
Also released today by the FSC is the first ever report on who helps the over 65s and how.
 
The equivalent of 427,500 New Zealanders (13% of the population aged 18+) indicated they provide unpaid private care or assistance for someone over the age of 65.  Of those providing care and assistance:

   * 58% were female
   * 31% were aged 45-54 well above this group’s share of the 18+ population (18.8%)
   * Ethnicity is more likely than average to be Asian or Pasifika and less likely than average to be NZ European/Pakeha

This care ranged from “general care” including visiting, talking, providing meals and having people to stay, to more intensive work sometimes on a live in basis doing household chores, taking them shopping, cooking meals or providing personal care.
 
 View Extract from the Horizon Research Financial Future report, August 2015

For more information contact:
Peter Neilson, CEO FSC
021 395 891 or peter.neilson@fsc.org.nz

About the Financial Services Council

The Financial Services Council (FSC) was established in 2011 to represent the interests of the New Zealand financial services industry and the financial well-being of all New Zealanders. Its objectives are to:

   * Develop and promote evidence-based policies and practices designed to assist New Zealanders to build and protect their net wealth
   * Promote the financial services industry for the economic benefit of New Zealand
   * Promote best practice in the financial services industry, including the publication of guidance for industry participants
   * Promote the financial services industry as a medium for investment or protection

The FSC has 22 member companies and 16 associate members. Members manage more than $80 billion in savings and provide financial services to more than 2.5 million New Zealand investors and policyholders. FSC members help New Zealanders achieve long term financial security by providing products and services which build wealth, prepare them for retirement and provide financial protection against unexpected health events.

 
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