As of 1 April 2021, Work and Income New Zealand has published the new NZ Superannuation rates. It’s important news, as it can give you an idea of the retirement income gap you may need to fill in the future, so you can plan ahead for the lifestyle you’re envisioning.
The table below shows this year’s standard NZ Super rates after tax, deducted at tax rate ‘M’:
Is $437 enough for you?
In New Zealand, we’re fortunate to have NZ Super. Even though we can’t rely on it to fund our retirement lifestyle in its entirety, it is a helping hand.
To give you an example, if you’re single and living alone, at current rates, you’ll receive $437 a week. This means that, over a retirement period of 30 years, you’ll receive about $681,000 in your bank account – money you won’t have to save for retirement.
However, the above weekly rates are unlikely to be enough for most Kiwis to live their dream retirement lifestyle, considering housing costs and other life plans that they may have for the post-work life.
Retirement planning is about helping you fill the gap between what NZ Super provides and your expenses, depending on the retirement lifestyle you have in mind. KiwiSaver, investments, homeownership – these are all things that, with a well-thought-out plan in place, can help you bridge the gap.
Like to learn more? Get in touch: we can help you with appropriate plans for your future.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.