You Don’t Need A Fat Nest Egg To Retire, Says Financial Adviser And Author

Many Kiwis fear they may not have enough to retire because of the doom-and-gloom prophecies that have swept the finance sector for years, but this scenario couldn't be further from the truth.

The author of New Zealand Retirement Planning Secrets, head of insurance and senior financial adviser at The Advice Hub, Victor Kolkur, says that while planning for retirement is essential, the amount of money you will need depends on the kind of lifestyle you want in retirement.

You may want to read more, take long walks, and hang out with friends and family—you don’t need millions for that kind of modest retirement," says Kolkur. "You also don't need to go without your morning coffee."

In challenging the retirement myth which Kolkur says deters many Kiwis from thinking seriously about retirement, the industry needs a fresh perspective that aligns more closely with the financial realities of the average New Zealander.

"The idea that a successful retirement is out of reach without a substantial sum flies in the face of the evidence. With the majority of New Zealanders unsure about whether they could find $5,000 in emergency funds quickly, the retirement planning deficit is not a matter of resources but of direction.

Kolkur proposes three strategies to secure retirement without relying on unrealistic financial goals:

1. Create a Personalised Plan:

Outline what you envision for your future and align your finances with these goals.

2. Prioritise Investments:

Start saving and investing early, making it a part of your routine budget.

3. Automate Finances:

Establish automatic mechanisms for saving to ensure consistent investment over time.

Kolkur says the overemphasis on property ownership as a retirement plan could lead to liquidity issues in later life.

"It's an old nugget, but very true, that we all need to diversify with a mix of investment assets."

Kolkur says inquiries for financial advice at his firm have been at an all-time high since the pandemic because people are more uncertain than ever about the future and are looking for some certainty.

"The good news is that New Zealanders can look towards a future where comfort doesn't come at the cost of a million-dollar balance but from a well-informed retirement goal."

ABOUT

Victor Kolkur is the author of New Zealand Retirement Planning Secretes – How to retire without the stress and worry and is based on Victor’s work with more than 1,000 clients.

The Advice Hub financial advisers comply with a higher standard of best practice guidelines, processes and safeguards than the law requires. The firm helps people get their best financial outcome available, focus on obtaining financial security, then increasing net worth quickly, again and again.

The firm specialises in financial advice, retirement planning, insurance, best practice advice, group insurance, employee benefits, KiwiSaver and business insurance advice.

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