1
00:00:07,133 --> 00:00:10,453
Speaker 1: You're listening to this Saturday Morning with Jack Team podcast

2
00:00:10,573 --> 00:00:11,733
Speaker 1: from News Talks That'd be.

3
00:00:12,893 --> 00:00:15,613
Speaker 2: Ed McKnight from Opie's Partners is with us this morning.

4
00:00:15,653 --> 00:00:17,693
Speaker 3: Hey, Ed, great to be here, Jack.

5
00:00:17,893 --> 00:00:21,173
Speaker 2: You have come up with a fantastic idea for a challenge.

6
00:00:21,213 --> 00:00:23,653
Speaker 2: I don't envy you, but give us the details.

7
00:00:24,213 --> 00:00:25,973
Speaker 3: Well, one of the big questions that a lot of

8
00:00:25,973 --> 00:00:28,613
Speaker 3: New Zealanders worry about it. There's a lot of anxiety

9
00:00:28,613 --> 00:00:32,093
Speaker 3: around this is can you actually live on the New

10
00:00:32,173 --> 00:00:36,053
Speaker 3: Zealand superannuation? Because sometimes you read news articles that say

11
00:00:36,453 --> 00:00:40,173
Speaker 3: absolutely not, it's impossible, and other times you hear actually,

12
00:00:40,213 --> 00:00:43,693
Speaker 3: some people are doing okay. So the challenge that I've

13
00:00:43,693 --> 00:00:46,173
Speaker 3: come up with is could I live on New Zealand

14
00:00:46,253 --> 00:00:48,373
Speaker 3: Super for a week so that I can find out

15
00:00:48,453 --> 00:00:51,413
Speaker 3: that answer for myself? Is it enough for me? So

16
00:00:51,453 --> 00:00:53,893
Speaker 3: that's about five hundred and thirty nine dollars if you're

17
00:00:53,893 --> 00:00:56,453
Speaker 3: a single person, or eight hundred and twenty eight dollars

18
00:00:56,573 --> 00:00:59,453
Speaker 3: a week if you are a couple. Now, if you

19
00:00:59,493 --> 00:01:01,333
Speaker 3: are going to do this challenge, there are there's some

20
00:01:01,413 --> 00:01:03,773
Speaker 3: good news. If you own your own home and you're

21
00:01:03,813 --> 00:01:06,693
Speaker 3: currently paying your mortgage, hopefully that will be gone by

22
00:01:06,733 --> 00:01:09,333
Speaker 3: the time you retire, so you don't have to count that,

23
00:01:09,693 --> 00:01:12,893
Speaker 3: and as I discovered, some of your commuting costs really

24
00:01:12,933 --> 00:01:18,533
Speaker 3: start to add up. So the challenge started and I

25
00:01:18,573 --> 00:01:20,693
Speaker 3: called up my friend Andrew and I said, come on,

26
00:01:20,893 --> 00:01:22,693
Speaker 3: we're going to try this for a week, and with

27
00:01:22,773 --> 00:01:26,773
Speaker 3: no planning, no preparation, we just started tomorrow. And I

28
00:01:26,813 --> 00:01:29,533
Speaker 3: tell you what, Jack, it does make you really conscious

29
00:01:29,573 --> 00:01:32,453
Speaker 3: of what you spend. So of my five hundred and

30
00:01:32,493 --> 00:01:34,813
Speaker 3: thirty eight dollars a week, my daily parking in the

31
00:01:34,853 --> 00:01:37,453
Speaker 3: city was four percent of my pension is paid.

32
00:01:37,573 --> 00:01:41,373
Speaker 2: Oh wow, yeah, of course, and that's every day. So

33
00:01:41,413 --> 00:01:44,013
Speaker 2: if you're going into work over the space of a week,

34
00:01:44,053 --> 00:01:46,013
Speaker 2: you've got twenty percent of your pay gone.

35
00:01:46,613 --> 00:01:49,373
Speaker 3: Yeah. Now, hopefully, if you're going to be retired, you're

36
00:01:49,373 --> 00:01:51,093
Speaker 3: not going to have to worry about that, so you can,

37
00:01:51,333 --> 00:01:53,413
Speaker 3: you know, you can be a little bit nice to yourself.

38
00:01:53,693 --> 00:01:56,733
Speaker 3: But I realized that even though I'm having porridge in

39
00:01:56,773 --> 00:01:59,453
Speaker 3: the morning, that was still costing five dollars a day,

40
00:01:59,933 --> 00:02:00,413
Speaker 3: and I.

41
00:02:00,293 --> 00:02:05,093
Speaker 2: Was like, wow, no, no, no break. Yeah right, oh

42
00:02:05,133 --> 00:02:05,653
Speaker 2: my gosh.

43
00:02:06,373 --> 00:02:08,973
Speaker 3: So my friend Andrew, on the first day of the challenge,

44
00:02:09,173 --> 00:02:12,373
Speaker 3: he said, look, I'm going to be really money smart

45
00:02:12,413 --> 00:02:14,893
Speaker 3: and I'm just going to skip lunch in order to

46
00:02:14,973 --> 00:02:17,453
Speaker 3: save money. And then by the time he gets to

47
00:02:17,493 --> 00:02:19,653
Speaker 3: four o'clock he's too hungry, so he goes out and

48
00:02:19,693 --> 00:02:22,333
Speaker 3: buys it. But what that made me realize, Jack, is

49
00:02:22,373 --> 00:02:25,933
Speaker 3: you sometimes read about people skipping meals and you think,

50
00:02:25,973 --> 00:02:28,613
Speaker 3: do people really do that? And the day one of

51
00:02:28,693 --> 00:02:30,693
Speaker 3: Andrew just trying to live on the pens are his

52
00:02:30,813 --> 00:02:34,693
Speaker 3: pay and they're already getting into skipping meals, I was like, Wow,

53
00:02:34,733 --> 00:02:37,413
Speaker 3: this is the reality. Filling up your car that also

54
00:02:37,573 --> 00:02:39,813
Speaker 3: will scat it jesus out if you're that offered, costs

55
00:02:39,853 --> 00:02:43,253
Speaker 3: over one hundred dollars. And so what this challenge made

56
00:02:43,333 --> 00:02:45,973
Speaker 3: me realize is if you are going to live on

57
00:02:46,253 --> 00:02:49,573
Speaker 3: enzet Super, you do need to be a really good planner.

58
00:02:50,173 --> 00:02:53,013
Speaker 3: You're probably not filling up your car every single week,

59
00:02:53,053 --> 00:02:56,933
Speaker 3: You're probably not going on their road trips. And the

60
00:02:57,013 --> 00:03:00,173
Speaker 3: thing that this also taught me is that if I

61
00:03:00,333 --> 00:03:02,213
Speaker 3: was to just live on the penchant, I'd need to

62
00:03:02,253 --> 00:03:05,493
Speaker 3: live a really really simple life, you know, not doing

63
00:03:05,493 --> 00:03:08,373
Speaker 3: too many things, because the cost these days really really

64
00:03:08,493 --> 00:03:12,333
Speaker 3: add up. Yeah, the reason I like this is that

65
00:03:12,733 --> 00:03:15,253
Speaker 3: there is a lot of anxiety around retiring and people

66
00:03:15,293 --> 00:03:17,333
Speaker 3: think he has the pension enough. So I reckon people

67
00:03:17,333 --> 00:03:19,373
Speaker 3: should give it a go because if you find you

68
00:03:19,453 --> 00:03:21,933
Speaker 3: can look on super great happy you don't have to

69
00:03:21,973 --> 00:03:24,733
Speaker 3: worry about your retirement, and if you can't, maybe this

70
00:03:24,813 --> 00:03:26,893
Speaker 3: will sk you into doing something about it.

71
00:03:27,093 --> 00:03:29,693
Speaker 2: Yeah, I just think it's such a valuable kind of,

72
00:03:29,933 --> 00:03:34,053
Speaker 2: you know, exercise for people who are approaching retirement and

73
00:03:34,253 --> 00:03:37,293
Speaker 2: want to see in real terms how they would get by,

74
00:03:37,493 --> 00:03:41,973
Speaker 2: and probably in some cases a bit of a you know,

75
00:03:42,533 --> 00:03:44,253
Speaker 2: a bit of a lightning rod, a bit of a

76
00:03:44,293 --> 00:03:46,613
Speaker 2: kickup the backside to say, you know what, do what

77
00:03:46,653 --> 00:03:49,533
Speaker 2: you can now to supplement spit if that's not going

78
00:03:49,573 --> 00:03:50,293
Speaker 2: to be enough.

79
00:03:51,093 --> 00:03:53,493
Speaker 3: And well, my question for you, Jack is are you

80
00:03:53,533 --> 00:03:54,613
Speaker 3: going to give it a go? Now?

81
00:03:55,093 --> 00:03:58,733
Speaker 2: You know what, I reckon it's going to be two

82
00:03:58,733 --> 00:04:01,093
Speaker 2: tricky yed and I swear I'm not just saying that

83
00:04:01,173 --> 00:04:05,093
Speaker 2: only because hopefully when I'm retired, I won't have two

84
00:04:05,293 --> 00:04:09,693
Speaker 2: little mouths to be And how mortgage payments are significant

85
00:04:09,693 --> 00:04:11,933
Speaker 2: as well, so you know, I could take that out

86
00:04:11,973 --> 00:04:15,493
Speaker 2: of things, but yeah, maybe I could come up with

87
00:04:15,533 --> 00:04:18,893
Speaker 2: a version of it where at the very least I

88
00:04:18,933 --> 00:04:21,853
Speaker 2: was forced to confront some of that kind of discretionary

89
00:04:21,893 --> 00:04:25,533
Speaker 2: spending like buying my lunch that perhaps I don't give

90
00:04:25,613 --> 00:04:27,413
Speaker 2: as much thought to as I should, you.

91
00:04:27,373 --> 00:04:30,173
Speaker 3: Know, And the main thing is just making it real

92
00:04:30,253 --> 00:04:32,773
Speaker 3: for every person because we each have different lives in

93
00:04:32,893 --> 00:04:35,973
Speaker 3: different ways that we go about our days if we've

94
00:04:35,973 --> 00:04:37,573
Speaker 3: got to go to work or we work from home

95
00:04:37,613 --> 00:04:39,813
Speaker 3: and all of these things. But if we strip it

96
00:04:39,933 --> 00:04:42,293
Speaker 3: back and take out some of those expenses and think, well,

97
00:04:42,333 --> 00:04:45,573
Speaker 3: what does the pension mean for me and my life,

98
00:04:45,613 --> 00:04:47,973
Speaker 3: and would that be okay? You're going to get one

99
00:04:48,013 --> 00:04:50,493
Speaker 3: of those two answers. Actually, I'm going to be totally

100
00:04:50,533 --> 00:04:54,053
Speaker 3: happy on super and I no longer have to worry

101
00:04:54,053 --> 00:04:56,493
Speaker 3: about retirement or well, I need to get my a

102
00:04:56,653 --> 00:04:59,493
Speaker 3: into g and start investing. I was speaking to a

103
00:04:59,533 --> 00:05:02,333
Speaker 3: lady who gave us a go after hearing us talk

104
00:05:02,373 --> 00:05:05,693
Speaker 3: about it on our podcast, and she said, God, ed,

105
00:05:05,733 --> 00:05:07,853
Speaker 3: I really need to invest, because that's not going to

106
00:05:07,853 --> 00:05:09,933
Speaker 3: be it for me. Should be just lo it. Onion

107
00:05:09,973 --> 00:05:10,533
Speaker 3: said super.

108
00:05:10,813 --> 00:05:13,173
Speaker 2: Yeah. See, just knowing that is such a valuable kind

109
00:05:13,173 --> 00:05:15,333
Speaker 2: of lesson and knowing it, hopefully with a little bit

110
00:05:15,373 --> 00:05:18,373
Speaker 2: of runway between you know where you are now and

111
00:05:18,413 --> 00:05:20,893
Speaker 2: where you are going to be come sixty five. Or

112
00:05:20,973 --> 00:05:23,773
Speaker 2: sixty seven or whatever the superage is when you get

113
00:05:23,773 --> 00:05:25,733
Speaker 2: to that time of life. Thank you so much, Ed,

114
00:05:25,773 --> 00:05:28,773
Speaker 2: what a great exercise. Really appreciate that is. Thanks check

115
00:05:28,973 --> 00:05:31,133
Speaker 2: there is Ed McKnight from op's Partners.

116
00:05:31,773 --> 00:05:34,853
Speaker 1: For more from Saturday Morning with Jack Tame, listen live

117
00:05:34,973 --> 00:05:37,773
Speaker 1: to News Talks d B from nine am Saturday, or

118
00:05:37,853 --> 00:05:39,693
Speaker 1: follow the podcast on iHeartRadio