Ryan Bridge: How do we possibly save for retirement?

Massey Uni releases these numbers each year. 

They tell you how much you might need to retirement. 

In the city... two people in a house... want to live comfortably... need $1 million. 

$450,000 in the provinces.

Now, you then start working backwards. In terms of you're net worth. 

Depending on your age, you may not be able to rely on the pension. 

Some government will eventually means test it or change the age or cut it back. It's inevitable. 

So there's a shortfall you're probably going to have to fill. 

KiwiSaver contributions need to go up. And they are. Slightly, from 3 to eventually 4%. 

But realistically, we'll need to be doing 10%.

And I know people are doing that - who are, even in their 30s, going hard on saving and investing for this express purpose. 

So people are planning and working hard. Slogging their guts out. Just being responsible and making sure they can take care of themselves and their families. 

Which is why it smacks of entitlement that politicians live in i a different world on super. Totally different world. 

They get a super subsidy 2.5 times the percent they contribute from their salary, up to a maximum payment of 20 percent.

RNZ reported earlier this year that a backbencher gets $170,000. 20 percent of that would be about $34,000

We get dollar-for-dollar from our employers up to 3 percent. 

The argument is their jobs aren't secure, so they need more security. 

They aren't the only ones in that situation. But they are the only ones I know of who get retirement nest egg like that. 

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Episode Transcript

Speaker 1 (00:00):
Massi University gives it these numbers every year and they're
quite interesting. This tells you how much you might need
in retirement. And if you're living in a city, you've
got two people at home and you want to live
comfortably in your retirement, you're going to need a million bucks.
That's what they're telling you. If you're in the provinces,
half that. Now you can start working backwards and you're
probably doing it in your head right now in terms

(00:21):
of your net worth. Depending on your age, you may
also need to think about the fact you can't rely
on the pension. You know, some government eventually will means
test it, they'll change the age, they'll cut it back.
It's inevitable that that will happen. So there's a shortfall
you're probably going to have to fill. And you're thinking
about this now, can we say the contributions they're going
to need to go up? They are slightly from three

(00:42):
to four percent, but realistically we'll need to bump them
up to probably ten. I think the Aussies are eleven
or twelve by now, and I know people are doing this.
I've got friends who are in their thirties who are
planning meticulously planning already for their retirement, saving, investing all
of that good stuff. People are working slogging their guts

(01:03):
out and working hard, just being responsible, making sure they
can take care of themselves and their families when they
get to age of retirement. Which is why to me,
it's smacks of entitlement that politicians live in a different
world to us on superannuation, totally different world. They get
a super subsidy two and a half times the percent

(01:25):
they contribute, up to a maximum of twenty percent. A backbencher,
they're on one hundred and seventy k twenty percent of
that could be about thirty four thousand dollars a year. Nice, right,
We get dollar for dollar from our employers up to
what three percent. The argument is their jobs aren't secure,
so they need more security. You know, you have an

(01:45):
election that comes every three years and there's a chance
that they'll be turfed out, So this is some security
for them. Well, they aren't the only ones in that situation,
are they? But they are the only ones I know
of who get a retirement ESTI quite that big and
pretty For more from early edition with Ryan Bridge, listen
live to news Talks It be from five am weekdays,

(02:08):
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