Business. Scoop » Can You Actually Retire On Just NZ Super? MoneyHub Says Yes – If You Own Your Home
Press Release – MoneyHubNZ Super was only ever designed to be a floor – a guaranteed, dignified base that keeps you out of financial hardship. MoneyHubhas published a guide answering one of the most quietly. . .
Press Release – MoneyHubNZ Super was only ever designed to be a floor – a guaranteed, dignified base that keeps you out of financial hardship. MoneyHubhas published a guide answering one of the most quietly worried-about questions in the country: can you actually live on NZ Super alone? The guide,Can You Actually Retire on Just NZ Super?, draws on Retirement Commission research suggesting around 40% of New Zealanders aged 65 and over have virtually no income other than Super, with another 20% having only a little more – close to two in three older New Zealanders relying mainly or entirely on the pension. Its answer: yes, many people already do – but how comfortable it is comes down almost entirely to two things: whether you own your home, and how modestly you’re prepared to live. 1) NZ Super is a floor, not a wage replacement – and as a floor, it’s a good one“NZ Super was only ever designed to be a floor – a guaranteed, dignified base that keeps you out of financial hardship. And it’s a good one: universal, inflation-linked, and paid for life, which is more than many countries manage for their retirees. But ‘a floor’ and ‘enough to live comfortably’ are two different things, and the gap between them is what this guide is about. ”– Christopher Walsh, MoneyHub Founder2) The dividing line is the family home“A mortgage-free homeowner has their single biggest cost handled, and Super can carry a modest life on top of it – especially outside the big cities. If you’re in your 50s or early 60s and Super is looking like your main retirement income, the most powerful thing you can do is focus on your housing – getting the mortgage gone before you stop work changes everything. ”– Christopher Walsh, MoneyHub Founder3) Renting is the hardest situation, and it’s a growing one“Rent alone can swallow most of a single person’s Super before a single grocery is bought, and more New Zealanders are reaching 65 without owning a home. The Retirement Commission’s research found those completely reliant on Super – especially renters – have moved from tightening the belt to, in their words, day-to-day survival. If you expect to be renting at 65, this is the issue to plan around above all others. ”– Christopher Walsh, MoneyHub Founder4) Too many retirees go without help that is rightfully theirs“A surprising number of people living on Super don’t claim the support they’re entitled to – the Accommodation Supplement in particular can make a real difference for renters. Check your eligibility even if you assume you won’t qualify, because the thresholds catch more people than expected. This is not a handout; it is support you’ve paid into through a lifetime of taxes, and it’s there to be used. ”– Christopher Walsh, MoneyHub FounderCan NZ Super cover it on its own? MoneyHub’s assessment by householdHousehold and lifestyleCan NZ Super cover it on its own?Single, no frills, provincialVery nearly – the smallest gap of all, and realistic for a mortgage-free homeownerCouple, no frills, metroClose – only a modest top-up neededSingle, no frills, metroNot quite – a real, ongoing weekly gapCouple, no frills, provincialNo – a sizeable gap to fillSingle, choices, provincialWell short – a large gapSingle, choices, metroWell short – a large gapCouple, choices, provincialWell short – a large gapCouple, choices, metroNowhere close – by far the largest gap of allOrdered from the smallest gap to the largest, based on the relationship between NZ Super rates and Massey University’s Retirement Expenditure Guidelines. Massey consistently finds provincial two-person households spend more each week than their metro equivalents, largely on housing running costs and transport. Source: MoneyHub, Can You Actually Retire on Just NZ Super?About the Guide:The full guide,Can You Actually Retire on Just NZ Super?, covers what Super pays and how the couple rate is legislated at no less than 66% of the net average wage, what retirement actually costs, who Super works for and who it doesn’t, and the entitlements many retirees never claim – including the Accommodation Supplement, Winter Energy Payment, Disability Allowance, Community Services Card, SuperGold Card and rates rebates. To model their own numbers, readers can use MoneyHub’s free Retirement Calculator. About MoneyHub:MoneyHubis New Zealand’s independent personal finance comparison and guidance website, providing consumer-first, data-driven research across investing, KiwiSaver, insurance, credit cards, banking, travel and more. MoneyHub’s guides are journalistic and general in nature, and are not personalised financial advice. Content Sourced fromscoop. co. nzOriginal url