The Workplace Savings/Westpac/NZ Retirement Expenditure Guidelines Survey on how much people are presently spending in retirement will be helpful information for measuring and monitoring our likely superannuation income gap, says the chief executive of the Financial services Council Peter Neilson.
The research released today shows how modestly many currently retired New Zealanders live.
In Australia they have a Retirement Income Savings Gap Report and the Workplace Savings Survey results will enable New Zealand retirement advisers to measure and monitor retirement income shortfalls now and into the future,” Mr Neilson said. “We will be able to clearly see whether the retirement income gap is widening, remaining static, or improving.”
Mr Neilson said the “real” income needs of retired people was often masked and not fully recognised, with children often helping out with irregular costs like Internet subscriptions, replacing appliances or repairs and maintenance of the house.
“Baby boomers, who are starting to retire now, will live longer and have an expectation of remaining in bigger homes, travelling and entertaining a lot more than their grandparents. This means their income “needs” will be higher than they have been in previous generations.
“With people predicted to live longer, New Zealand will increasingly have intergenerational retirement where 80 and 90 year old parents and their children are all retired and relying on their retirement savings to live,” Mr Neilson said.
“The Workplace Savings research provides some very useful insights into the current spending of retirees and future research will provide comparative information that will enable the industry to understand and react to the trends that emerge,” he said.
