How a Financial Adviser can help your goals of financial freedom and retirement

Setting Goals for Financial Freedom and Retirement. How a financial Adviser can help.

Planning for a comfortable retirement is a key financial goal. By understanding how much you need and setting achievable goals, you can pave the way to a financially secure future.

However a lot of the factors that decide how much savings and investments you need are deeply personal. For the couple in Wanaka that will have no mortgage and a freehold house the calculations will be quite different for the single empty nester in Queenstown that wants to travel the world.

Therefore you really shouldn’t rely on general figures or ideas. It is most helpful when you get down to specifics for yourself.

Various factors, including personal lifestyle choices, desired standard of living, and anticipated expenses, play a significant role. According to the New Zealand Retirement Expenditure Guidelines, a retired couple seeking a comfortable lifestyle requires around NZD 61,000 per year, while a single person needs approximately NZD 42,000 annually.

To set realistic retirement goals, consider the following steps:

1. Assess Your Current Financial Situation: Begin by evaluating your current income, expenses, and savings. Determine how much you can contribute to your retirement fund regularly.
2. Estimate Your Retirement Expenses: Consider factors such as housing, healthcare, transportation, travel, and leisure activities. Plan for inflation and potential medical costs.
3. Calculate the Retirement Savings Gap: Subtract your expected New Zealand Superannuation income and any other pension plans from your estimated retirement expenses. The remaining amount will indicate the savings you need to accumulate. There is also a difficult political and personal decision. Are you confident NZ Superannuation will be in its current form when you reach retirement?
4. Start Saving Early: The power of compounding interest means that the earlier you start saving for retirement, the better. Take advantage of retirement savings options, such as KiwiSaver or other investments you feel comfortable with.
5. Adjust and Monitor Your Goals: Regularly review and adjust your retirement goals as circumstances change. Monitor your progress, and make necessary adjustments to ensure you’re on track to meet your target.

Retirement planning in New Zealand requires careful consideration of individual circumstances. By estimating retirement expenses, calculating the savings gap, and setting achievable goals, you can work towards a comfortable retirement. Start planning early, take advantage of retirement savings options, and regularly review your goals to ensure financial security.

And get a Financial adviser involved if you want expert advice. We all subscribe to different software packages but usually a financial adviser will be able to model out your future. No model is exact but having an independent expert sit down with you and make projections could be just what you need. It may be a pleasant surprise how well prepared you are or may be the reality check you need to start building those retirement funds.

I find when I sit down with people and project out the future has a huge benefit. It usually changes some form of behaviour. But for some it is a real comfort knowing they are well on track to financial freedom or a retirement if that is what they want.