This is what happens in NZ without the PAP and the CPF system

[Leongsam]

How much you need in KiwiSaver to be comfortable

7:00 AM Monday Nov 9, 2015

• Business
• KiwiSaver
• Retirement

New calculations show NZ retirees won't be able to just use national superannuation if they have ambitions beyond a 'no-frills' lifestyle. Photo / Thinkstock

An Auckland couple would need to have a combined $552,000 in their KiwiSaver funds to have some choices in their retirement, based on the spending of today's retirees.

Westpac Massey University Fin-Ed Centre in conjunction with Workplace Savings has released its latest calculations on how much people currently spend in retirement.

It revealed only couples who live in New Zealand's major cities on a "no-frills" budget are able to get by on New Zealand Superannuation alone.

Massey University researcher Claire Matthews said the figures showed even people living frugally had to top up the government benefit with either savings or income to survive.

"I'm not sure the public actually understand. People don't just live on New Zealand Super. They have either got savings or are still working."

Matthews said the figures showed that people have "got to save" if they want to have a basic standard of living in retirement.

While the $552,000 might seem like a lot of money, Matthews said if people were in KiwiSaver and started saving from a young age it should be achievable.

But it was much harder for those who waited longer.

Calculations from the retirement planner tool on the Sorted.org.nz site showed a single female would need to have $113,216 saved by 65 to live a no frills retirement.

For a 25-year-old that would require saving $46 a week but for a 50-year-old it jumped to $144 a week.

Matthews said it was much easier for the 25-year-old, especially if they were employed and signed up to KiwiSaver, as around half of that money could come from their employer contribution and the government subsidy.

"What it shows is you do need to start [saving] early. The reality is the best time to start is when you start working."

If young people started contributing to KiwiSaver from their first job it would be built into their income expectations, so they would not feel like they were missing out.

But she said it was not too late to do something in your 50s or 60s.

New calculations show NZ retirees won't be able to just use national superannuation if they have ambitions beyond a 'no-frills' lifestyle. Photo / Thinkstock

"It is not too late but it is going to be more difficult."

Matthews said older savers may need to adjust their thinking and consider working beyond 65 if they could manage it.

"It is a mind-set change for New Zealanders. They've got to stop thinking of 65 as the age of retirement." Matthews said if people chose to work beyond 65 they would still get some of their superannuation entitlement which could be used to bolster savings.

Examination of the spending categories revealed housing costs were relatively low, indicating most retirees still lived in a home they owned.

But Matthews said that was likely to change over time based on home-ownership patterns now coming through and some people would need to factor the cost of renting into how much they would need to save.

The other concern in the retirement expenditure data was the finding many retirees did not spend enough on electricity to include the use of heating, she said.

"At some levels there is a struggle to pay for heating and that is a major issue."

 

[Big Sexy]

come back sam.. with CPF minimum sum you only only need 160K or 320K per couple to retire here
everyday eat grass and drink cunt juice

How much you need in KiwiSaver to be comfortable

7:00 AM Monday Nov 9, 2015

• Business
• KiwiSaver
• Retirement

New calculations show NZ retirees won't be able to just use national superannuation if they have ambitions beyond a 'no-frills' lifestyle. Photo / Thinkstock

An Auckland couple would need to have a combined $552,000 in their KiwiSaver funds to have some choices in their retirement, based on the spending of today's retirees.

 

[Leongsam]

come back sam.. with CPF minimum sum you only only need 160K or 320K per couple to retire here

Yes Singapore definitely is the best of the best thanks to the PAP.

You guys who live there as so lucky. Unfortunately, I made the big mistake of thinking that the PAP was useless. I was mislead by the opposition and I am now paying the price.

 

[kiwibird7]

1. Just take the weekly payouts of NZ SUPER and compare it against the PAP's CPF minimum sum scheme etc payouts.

2. The NZ SUPER is revised to keep up with inflation pressures, the CPF monthly payouts are NOT inflation protected.

3. In PAP land, it is a COMMON sight senior citizens have to pick cardboards, collect empty cans, wipe food tables at hawker's centres for a living. This is not seen in NZ, seniors spend their time drinking coffee at STARBUCKS style cafe, eating steaks at restaurants or feeding jackpot machines hence they are overspending their $374 weekly allowance. In SG, only school students are seen at Starbucks cafe & expensive restaurants. Old men in SG hang out at AMK food centres hoping for a free meal from kind souls.

4. Costs of living in NZ must be lower than SG as the NZ PM and his ministers can live on their annual salaries of a couple hundred thousand, whilst PAP ministers need acouple of million $ as salaries.

 

[kiwibird7]

Are you smoking weed? Hero worshipping PAP whilst still living in NZ? There is nothing stopping you from crawling back to SG. Just renounce your NZ citizenship, put back the money back into the CPF account with interests and your SG citizenship will be reinstated.

 

[yahoo55]

Sinkie couples need way more than $552K to retire at age 65. According to a DBS study, a Sinkie couple needs $2 million to retire at 65. Living costs are high in Singapore, and Singapore medical insurance is really expensive when one is over 65 with high deductibles and co-payments. That's why you see many Sinkie elderlies having to rely on their kids or to work as cleaners to survive in Singapore.

The CPF interest rate is really miserable compared to the New Zealand pension scheme. CPF is not enough for retirement, many Sinkies will have to work till their 70s or 80s or till they die.

 

[lifeafter41]

Sinkie couples need way more than $552K to retire at age 65. According to a DBS study, a Sinkie couple needs $2 million to retire at 65. Living costs are high in Singapore, and Singapore medical insurance is really expensive when one is over 65 with high deductibles and co-payments. That's why you see many Sinkie elderlies having to rely on their kids or to work as cleaners to survive in Singapore.

The CPF interest rate is really miserable compared to the New Zealand pension scheme. CPF is not enough for retirement, many Sinkies will have to work till their 70s or 80s or till they die.

At 2milliion, would put at least 75% of the population in Singapore as to not being able to retire.
I guess the main question would be you want to have your meal in hawker center, food court or restaurant.

 

[Big Sexy]

I fully agree with Sam, Singapore and PAP definitely the best of the best

Pretty sure many find the home loan rate in nz miserable too.

The CPF interest rate is really miserable compared to the New Zealand pension scheme. CPF is not enough for retirement, many Sinkies will have to work till their 70s or 80s or till they die.

I have seen enough homeless sleeping on cardboard in the streets of Auckland during my time there

3. In PAP land, it is a COMMON sight senior citizens have to pick cardboards, collect empty cans, wipe food tables at hawker's centres for a living. This is not seen in NZ, s.

 

[frenchbriefs]

superannuation only cost you 7.5 percent income tax a year,CPF cost you up to 36 percent in taxes a year.and the payout is still way way lower than anything aussie or nz gov gives u.

in aus/nz,once u paid ur fair share of taxes(20 cycles),u get taken cared for live,in sg they will count every dollar u contribute,if u dont have enough u die u business and according to CPF statistics,barely 51 percent of singaporeans meet the bare requirement for a minimum sum retirement,so i guess alot of sinkies are going to die.so much for such a wonderful system pioneered by LKY.

 

[kiwibird7]

I fully agree with Sam, Singapore and PAP definitely the best of the best

Pretty sure many find the home loan rate in nz miserable too.



I have seen enough homeless sleeping on cardboard in the streets of Auckland during my time there

Like I said earlier, those who love the PAP and their policies should stay in SINGAPORE.

As a general rule, senior citizens are better off in NZ than in SG, stop quibbling over a few instances of seeing some losers (who knows: they may be drug addicts/drunks/wife abusers, illegal immigrants etc) who are HOBOs in Auckland.

Want to become a NZ PR, not so easy. On the other hand, want to become SG citizen/PR any Ah Ter or Ah Kow from PRC/India/Pinoy land seemed to qualify easily.

 

[yahoo55]

At 2milliion, would put at least 75% of the population in Singapore as to not being able to retire.
I guess the main question would be you want to have your meal in hawker center, food court or restaurant.

Many Sinkie couples don't even have $1 million at 65, which is likely not enough for retirement given the inflation, longevity, high living and medical costs in Singapore.

When you add up all the expenses and inflation and longevity, $1 million is likely less than a "hawker centre" retirement for a Sinkie couple over the next few decades.

If a Sinkie couple don't have $1 million at 65, better not retire unless they have kids to help them.

 

[winnipegjets]

1. Just take the weekly payouts of NZ SUPER and compare it against the PAP's CPF minimum sum scheme etc payouts.

2. The NZ SUPER is revised to keep up with inflation pressures, the CPF monthly payouts are NOT inflation protected.

3. In PAP land, it is a COMMON sight senior citizens have to pick cardboards, collect empty cans, wipe food tables at hawker's centres for a living. This is not seen in NZ, seniors spend their time drinking coffee at STARBUCKS style cafe, eating steaks at restaurants or feeding jackpot machines hence they are overspending their $374 weekly allowance. In SG, only school students are seen at Starbucks cafe & expensive restaurants. Old men in SG hang out at AMK food centres hoping for a free meal from kind souls.

4. Costs of living in NZ must be lower than SG as the NZ PM and his ministers can live on their annual salaries of a couple hundred thousand, whilst PAP ministers need acouple of million $ as salaries.

Can you picture Sam picking cardboard boxes, cans and selling tissues?

 

[frenchbriefs]

by the way dont believe the article,there are many aussies in australia living on a "no frills" budget spending their every waking hours at the casino playing slots or playing poker living off their australian pension or superannuation alone,having a good time while our elderly bust their ass clearing dishes and cleaning toilets for a living.

the two biggest expenses in life are the rent and food.if u are able to pay off ur 200k housing mortgage in the suburbs before you retire,u are scot free.u are free to enjoy the remaining golden years of ur life at the keno/sportsbetting bar,or the blackjack tables or slot machines.the casinos will take care of ur food expenses for you by offering you comp dollars on your players card at the cafeteria or the cheap discount buffet at Carver's which is usually packed with elderly aussies.what more can u ask for?spending ur waking hours gambling away and stuffing your face at the buffet with a slight chance that u might actually win the jackpot machine and walk home a millionaire.tell me which daft and stupid sinkie would not want to trade lives?which sinkie wouldnt want to take up aussie citizenship if they had the chance?which sinkie wouldnt want to become aussie if they knew how bad their government is screwing them?

australia is a place of good wages,good living and good times if u are a citizen.

 

[frenchbriefs]

leong sam pls come in,do you qualify for aussie national pension even if u have lets say a 200k home and 500k in assets generating passive income?

i would like to move to the country that gives me the most in return for the least.

in SG obviously if u have nothing in ur CPF,u are going to get jackshit.

 

[lifeafter41]

Many Sinkie couples don't even have $1 million at 65, which is likely not enough for retirement given the inflation, longevity, high living and medical costs in Singapore.

When you add up all the expenses and inflation and longevity, $1 million is likely less than a "hawker centre" retirement for a Sinkie couple over the next few decades.

If a Sinkie couple don't have $1 million at 65, better not retire unless they have kids to help them.

Having said that, what do you envision you and the wifey will save And have by age 55. Maybe we can out it as cpf (2 person) + savings (2 person)

 

[lifeafter41]

I fully agree with Sam, Singapore and PAP definitely the best of the best

Pretty sure many find the home loan rate in nz miserable too.



I have seen enough homeless sleeping on cardboard in the streets of Auckland during my time there

Just did a quick look and understand the NZ housing loan rate is about 6%.

 

[frenchbriefs]

Just did a quick look and understand the NZ housing loan rate is about 6%.

well u can find houses in AU for less than 100k so 6% is nothing.

 

[kiwibird7]

well u can find houses in AU for less than 100k so 6% is nothing.

The short term 2 yr special home mortgage rate in NZ is only 4.39%pa

https://www.bnz.co.nz/personal-bank...loan-special?gclid=CI-D4ezegskCFUcIvAodjpwNfg

 

[Alive]

yawn......................

 

[frenchbriefs]

Just did a quick look and understand the NZ housing loan rate is about 6%.

au house so cheap u can literally pay the downpayment in cash in a plastic bag or milo tin,no need bank loan.bank loan is for lazy people.

in fact au house so cheap u can pay one house off in about 4 to 5 years,then rent it out for $800 a month,then buy another house and use the rent plus ur milo tin bank to pay it off,and rent it out,and buy another and another and another.pretty soon u will be buying 10 to 20 houses a year and building a gigantic networth like donald trump and ur real estate empire will be bigger than mcdonalds or umbrella corp.and one day when u use satellite imagery and google maps,ur network of houses will be more than the number of mcdonalds outlets stretching across america and the world like the matrix.

[video=youtube;pFS4zYWxzNA]https://www.youtube.com/watch?v=pFS4zYWxzNA[/video]