Financial Planning For The Elderly
Within the next decade, there will be more than 1.2 million people aged 65 and over in New Zealand, outnumbering the under-18 youth population. That means that there will be more retirement-aged people than ever before and they will be relying for the most part on pensions and retirement schemes to support themselves.
Elderly Kiwis make up a growing proportion of the New Zealand population and have significant financial management requirements as they live off of retirement savings and government support. If you are elderly or approaching retirement, contact a MyFuture Qualified Financial Adviser to help you meet or exceed your retirement needs.
Whether you have saved for retirement your whole life or you got a late start in the game, you can make the money you have work for you with the help of the MyFuture team. Our Expert Financial Advisers will help you achieve financial freedom so you can enjoy your retirement years.
Is It Too Late To Create A Financial Plan?
It’s never too late to create a financial plan. Whatever age you get around to it, our financial experts at MyFuture will guide you through your options and the best strategies to pursue the retirement lifestyle you want.
If you haven’t retired yet, our experience has shown that elderly people who can comfortably live out their dream retirements created a financial plan before they hit retirement age. Depending on when you plan to retire, what assets you hold, and what level of risk you are comfortable with, a combination of investments and savings strategies will ensure your retirement years can be enjoyed free of financial worries.
If you are already at retirement age or are already retired, don’t fret. The MyFuture team can help you make the most of the resources available to you with a financial plan that takes into account your financial goals.
With proper budgeting, investments and savings, and maximising your assets, your retirement can be everything you want it to be.
Get Ahead With Quality Financial Advice
Our Qualified Financial Advisers can help you achieve your goals with a tailored financial plan and proven financial expertise.
What To Do If You Don’t Have Enough Retirement Savings?
Approaching or reaching retirement age can cause a feeling of trepidation in many elderly people. The constant worry of not having enough money to retire comfortably is a valid concern and one we can surely appreciate. For many seniors in New Zealand, the superannuation payments of NZ$350 a week are their sole income. While this may seem like it’s enough, according to this New Zealand government survey in 2015, 25% of Kiwi retirees don’t have enough money to do all the things they want in retirement. Likewise, 4% of retirees in NZ say they’re struggling to make ends meet.
Review your current savings
Your savings can come from a variety of sources, so be sure to review your accounts and identify where they are and how much you have:
- KiwiSaver funds
- Employer retirement funds
- Personal retirement funds
- Other savings and investments
- Large assets such as a home or business
- Smaller assets such as vehicles
Adjusting expectations
Maybe the travelling you were planning to do in retirement will have to be done on a smaller budget or you can downsize your home to free up some funds. Adjusting your expectations to make room for necessities or indispensable comforts will make your money go further for longer.
Finding part time work
We’re not suggesting you go back into full time employment, but finding something you like doing that you can be paid for might be a way forward to help you reach your desired retirement lifestyle.
Taking advantage of resources available to you
The NZ government’s superannuation (NZ Super) payments on a biweekly basis do provide enough income for some elderly people to live on comfortably. While they won’t enable you to splurge on luxurious holidays, they can tide you over while you wait for savings or investments to realise their potential. If you’re able to save anything from these payments, that money can be reinvested and potentially extend the life of your retirement funds.
Get in touch with MyFuture today so we can discuss how to extend the life of your retirement funds and make the money you do have work for you.
Government assistance schemes
Besides your superannuation, the NZ government has several programmes that can provide you the financial assistance you need. Any savings you are able to still generate can be added to your KiwiSaver. Your SuperGold Card can provide access to transport as well as many discounts on the things you buy. There are also programmes to subsidise housing, provide healthcare needs, reduce your energy spending, and many more.
Where Should A 70 Year Old Invest Their Money?
When you reach 70 years old, there are still opportunities to invest your money. Depending on how much retirement savings you have stored away and how much risk you’re willing to take, you can invest your money into a combination of savings and investment programmes.
While savings programmes are more likely to protect your assets as they carry less risk, they’ll also accrue interest at lower rates than investments. Investments inherently carry more risk, but they can also provide higher returns enabling the elderly to upgrade their retirement lifestyle or goals.
One of the most important considerations is understanding how much money you need from your investments, and when.
Reach out to a Qualified Financial Adviser at MyFuture today for a FREE no obligation Discovery Session so we can help you protect your assets now, grow them in the future, and be ready for whatever life throws at you.
What is our 6-Step Financial Advice Process?
The 6-step financial advice process is the international benchmark for financial planning. This holistic approach is proven to increase the likelihood of you achieving your financial goals.
Discovery Session
This is our opportunity to get to know you better, understand your financial goals (short, medium and long-term), and what resources you have to achieve those goals.
Research & Recommendations
During these steps, we do the research, run the numbers, document and present our recommendations to you. This can be a comprehensive financial plan focused on long-term wealth creation and/or a statement of advice focused on your more immediate financial needs. We will need to verify the information you provided during the Discovery Session by requesting supporting documents such as loan and savings account balances, payslips, etc. This ensures we are using highly accurate information when developing our recommendations.
Implementation
This step is all about implementing the recommendations. We don’t just provide the recommendation; we take responsibility for helping you implement it. This could involve helping you to complete application forms, working with a broker to restructure your lending, or finding you suitable investments. We understand you’re busy, so our goal is to make your financial world as easy as possible by doing as much as we can in-house for you. However, ultimately, we never have access to your money and cannot sign anything on your behalf, so you need to be an active, willing, and ideally enthusiastic participant in this process.
Ongoing Service & Reviews
This is where the real fun begins—managing and tracking your long-term financial success. We have periodic reviews to ensure your strategy is still appropriate if your goals or circumstances have changed. We adjust when necessary and provide annual snapshots so you can see your progress over time. Most importantly, you have your very own trusted Personal Financial Adviser available anytime to help with the little or big stuff. Worried about making next month’s mortgage repayments? Call us. Your parents gave you an early inheritance? Call us. Broke up with your partner and split all your assets? Call us! We’re here for you every step of the way to ensure that whatever life throws at you, you stay on track with your long-term financial goals.
Frequently Asked Questions