1 00:00:00,080 --> 00:00:02,280 Speaker 1: We've got more suggestions on how much you should put 2 00:00:02,279 --> 00:00:06,040 Speaker 1: aside for retirement. The latest retirement expenditure guidelines have found 3 00:00:06,080 --> 00:00:09,200 Speaker 1: less than five hundred thousand dollars in savings should be 4 00:00:09,320 --> 00:00:13,000 Speaker 1: enough for most retirees, but many are spending more. MASSI 5 00:00:13,160 --> 00:00:17,520 Speaker 1: universities say retirees should have additional income beyond superannuation so 6 00:00:17,560 --> 00:00:20,560 Speaker 1: they don't have to worry about running out superannuation, and 7 00:00:20,640 --> 00:00:23,880 Speaker 1: super fund expert Jonathan Erickson joins me now at morning. 8 00:00:23,640 --> 00:00:26,360 Speaker 2: Jonathan Boding Roman things, Oh. 9 00:00:26,239 --> 00:00:31,240 Speaker 1: I'm pretty broke, actually pretty broken and terrified really suggested, don't. 10 00:00:31,080 --> 00:00:34,280 Speaker 2: Be, don't be, no, no, say. The key thing is 11 00:00:34,400 --> 00:00:36,920 Speaker 2: New Zealand super is not enough to live on, but 12 00:00:37,080 --> 00:00:42,400 Speaker 2: it's the best inflation proof income you can get, not 13 00:00:42,440 --> 00:00:46,000 Speaker 2: only in New Zealand but in most retirement systems around 14 00:00:46,000 --> 00:00:49,120 Speaker 2: the world. So what you need to do is to 15 00:00:49,120 --> 00:00:52,599 Speaker 2: build up a nest gig to top it up. And 16 00:00:52,840 --> 00:00:56,760 Speaker 2: Massy University is right. The target should be half a million. 17 00:00:57,320 --> 00:00:59,680 Speaker 2: And then if you want a bit more luxury and 18 00:00:59,720 --> 00:01:02,560 Speaker 2: you are be able to go on holidays every year 19 00:01:02,720 --> 00:01:06,360 Speaker 2: and go and visit the grandchildren in Australia or whatever, 20 00:01:06,720 --> 00:01:11,000 Speaker 2: then you probably need a million. But they are targets 21 00:01:11,160 --> 00:01:13,119 Speaker 2: and the key thing is to save as much as 22 00:01:13,160 --> 00:01:16,560 Speaker 2: you can and enjoy what you're doing for your work, 23 00:01:16,959 --> 00:01:20,880 Speaker 2: and to say be careful and look after your health. 24 00:01:21,160 --> 00:01:24,080 Speaker 2: So gym memberships all that sort of stuff are critical. 25 00:01:24,720 --> 00:01:26,560 Speaker 1: Yeah, makes sense, doesn't it. What about for a no 26 00:01:26,800 --> 00:01:30,600 Speaker 1: frills household, no children to visit overseas, no desire to 27 00:01:30,640 --> 00:01:33,160 Speaker 1: go to every gig and show that comes to Eden 28 00:01:33,240 --> 00:01:34,679 Speaker 1: Park or the Caketon and Wellington. 29 00:01:35,000 --> 00:01:39,000 Speaker 2: Yeah yeah, yeah, Well then then I still say you 30 00:01:39,040 --> 00:01:42,880 Speaker 2: need four hundred thousand because you don't know what your 31 00:01:42,880 --> 00:01:43,840 Speaker 2: healthcare costs. 32 00:01:47,040 --> 00:01:48,880 Speaker 1: Where have you gone here either? You are you come back? 33 00:01:48,960 --> 00:01:51,000 Speaker 1: You just disappeared there for a bit, Jonathan, just repeat 34 00:01:51,000 --> 00:01:51,560 Speaker 1: that last. 35 00:01:51,400 --> 00:01:55,480 Speaker 2: Sent Think it's healthcare and whether you can get access 36 00:01:55,560 --> 00:01:58,760 Speaker 2: to that on the public health system for more or 37 00:01:58,840 --> 00:02:01,600 Speaker 2: less free. So that's why I live in Auckland. I'm 38 00:02:01,680 --> 00:02:04,800 Speaker 2: quite close to north Shore Hospital. But if you have 39 00:02:04,920 --> 00:02:08,000 Speaker 2: to travel or you have to pay for healthcare privately, 40 00:02:08,520 --> 00:02:10,919 Speaker 2: then it may make the difference between life or death. 41 00:02:11,280 --> 00:02:14,440 Speaker 2: Having ten thousand dollars in the kiddy, how. 42 00:02:14,400 --> 00:02:17,080 Speaker 1: Much has inflation and the cost of living impacted how 43 00:02:17,160 --> 00:02:19,040 Speaker 1: much you need to save for retirement? 44 00:02:19,960 --> 00:02:23,440 Speaker 2: Yeah, it's put it up by twenty percent. So everything's 45 00:02:23,440 --> 00:02:26,520 Speaker 2: gone up, even the basics like food. But the key 46 00:02:26,560 --> 00:02:29,840 Speaker 2: things are rates if you're own your own home and insurance. 47 00:02:30,840 --> 00:02:33,120 Speaker 1: Yeah, okay, Well, they always say that youth is wasted 48 00:02:33,160 --> 00:02:35,200 Speaker 1: on the young, don't they now, considering things will likely 49 00:02:35,240 --> 00:02:38,800 Speaker 1: get more expensive, should the younger generation prioritize savings for 50 00:02:38,840 --> 00:02:41,520 Speaker 1: retirement a whole lot sooner, and a whole lot more 51 00:02:41,560 --> 00:02:42,440 Speaker 1: than what they are now. 52 00:02:43,960 --> 00:02:46,480 Speaker 2: It depends how much they're saving now. If they're saving 53 00:02:46,520 --> 00:02:50,120 Speaker 2: ten percent of their income, that's enough. But if they're not, 54 00:02:50,320 --> 00:02:53,119 Speaker 2: if they're living week page heat to paycheck or week 55 00:02:53,160 --> 00:02:56,200 Speaker 2: to week and spending what they make is though you 56 00:02:56,240 --> 00:02:59,040 Speaker 2: know there's no tomorrow, then that's a big mistake. 57 00:03:00,000 --> 00:03:01,120 Speaker 1: Do you find that a lot of people get in 58 00:03:01,160 --> 00:03:03,080 Speaker 1: touch with you or just do you get the feeling 59 00:03:03,120 --> 00:03:05,320 Speaker 1: that most of us are terrified because most of us 60 00:03:05,360 --> 00:03:07,440 Speaker 1: are asset rich with you. If you own a home 61 00:03:07,480 --> 00:03:10,480 Speaker 1: in Graytown or Featherston, it's worth millions anyway, but you're 62 00:03:10,480 --> 00:03:12,359 Speaker 1: not selling it, are you? 63 00:03:12,400 --> 00:03:18,360 Speaker 2: No? No, So there's reverse inuity mortgages. But this is 64 00:03:18,400 --> 00:03:22,200 Speaker 2: the problem people that shouldn't be terrified. There's fear doesn't 65 00:03:22,280 --> 00:03:25,600 Speaker 2: change anything, but Effectively, what you want to be able 66 00:03:25,680 --> 00:03:27,680 Speaker 2: to do is get some cash out of your house. 67 00:03:28,120 --> 00:03:32,040 Speaker 2: And when you're living in places like Featherston and Greytown 68 00:03:32,440 --> 00:03:35,320 Speaker 2: that you can't do any better quite frankly. But if 69 00:03:35,360 --> 00:03:37,720 Speaker 2: you're living in Auckland or Willington, you can sell up 70 00:03:37,760 --> 00:03:42,200 Speaker 2: there and go and live in the provinces and basically, 71 00:03:42,720 --> 00:03:45,760 Speaker 2: you know, live off the saving that you make in 72 00:03:45,840 --> 00:03:47,480 Speaker 2: the difference in the value of the two homes. 73 00:03:47,600 --> 00:03:49,680 Speaker 1: Yeah, that makes sense. I'm going to be selling up 74 00:03:49,680 --> 00:03:52,640 Speaker 1: and moving into a camping ground, I think. Jonathan Erickson 75 00:03:52,720 --> 00:03:55,520 Speaker 1: a superannuation and super fun expert. Thanks for your time 76 00:03:55,560 --> 00:03:59,120 Speaker 1: this morning. For more from Early Edition with Ryan Bridge, 77 00:03:59,240 --> 00:04:02,640 Speaker 1: listen live to News Talks it'd be from five am weekdays, 78 00:04:02,920 --> 00:04:04,960 Speaker 1: or follow the podcast on iHeartRadio.