Retirement planning message starting to get through
12 August 2014
Retirement planning message starting to get through to New Zealanders, says AMP
More than half (52%) of working New Zealanders already have plans on what they will do with their retirement savings, suggesting that the message about planning for retirement may finally be starting to sink in, according to new research from leading wealth management and insurance provider, AMP.
The research found that upon
reaching the age of 65:
• 15% plan to pay off their
mortgage/debt
• 15% plan to withdraw the money and
invest elsewhere
• 14% plan to withdraw the money and
spend it, and
• 8% plan to keep their money in
KiwiSaver.
Jeff Ruscoe, Chief Customer Office, at AMP says: “It is great news that the tide seems to be turning and people are starting to think about what their retirement will look like. A little time spent thinking now about your retirement, can mean the difference between struggling on a pension to being able to afford the things you’ve dreamed of in your retirement
“KiwiSaver has been around for seven years now and it seems that more people are beginning to think about how they can work with their KiwiSaver provider or financial adviser as they see KiwiSaver is a key part of their retirement income,” continues Ruscoe.
However, there was a flip side to the research with 48% of respondents still remaining unsure of what to do with their funds on retirement.
“With a significant portion of the working population still to consider their retirement plans, it sends a clear signal that Kiwis need to consider the retirement lifestyle they wish to lead. A little bit of time preparing, planning or talking to an adviser can go a long way in order to achieve that dream.
“Living the life you want in retirement comes down to having a clear view of what you want that retirement to look like, and putting a plan in place to make this happen. Without this level of planning too many people may arrive at their retirement, at best – not able to realise their dreams, or at worst, struggling to meet their daily living costs such as healthcare costs, adequately heating their property or affording petrol to visit the grandkids,” concludes Ruscoe.
About
AMP
• AMP is a leading wealth management and
insurance provider in the New Zealand marketplace and has
been supporting the financial welfare of customers for 160
years
• Our customers hold more than 870,000
investment, savings and insurance products
• AMP has
one of the largest networks of advisers in New
Zealand
• AMP is the only default KiwiSaver provider
with both a ‘silver’ rating from Morningstar and a 5
Star Canstar Award
• AMP has more than 258,000
KiwiSaver Scheme members and more than $3 billion funds
under management, equating to around 16% market
share
• We’ve awarded more than $1.8 million in the
last 16 years through our AMP Foundation
In 2013
we:
• helped more than 1,800 kiwis buy their first home
through KiwiSaver
• paid out $46.75 million in general
insurance claims
• supported approximately 73,000 New
Zealanders who were unable to work because of an injury or
illness by paying out nearly $9 million in income protection
insurance
• wrote $644 million in new mortgages,
and
• provided advice over the phone to more than
150,000 New Zealanders – more than 400 people per
day.
ENDS