Latest / Early Edition with Ryan Bridge / Jonathan Eriksen: Superannuation and Super Fund expert on the recommended savings for retirees

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Jonathan Eriksen: Superannuation and Super Fund expert on the recommended savings for retirees · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: We've got more suggestions on how much you should put
• 0:02
  Speaker 1: aside for retirement. The latest retirement expenditure guidelines have found
• 0:06
  Speaker 1: less than five hundred thousand dollars in savings should be
• 0:09
  Speaker 1: enough for most retirees, but many are spending more. MASSI
• 0:13
  Speaker 1: universities say retirees should have additional income beyond superannuation so
• 0:17
  Speaker 1: they don't have to worry about running out superannuation, and
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  Speaker 1: super fund expert Jonathan Erickson joins me now at morning.
• 0:23
  Speaker 2: Jonathan Boding Roman things, Oh.
• 0:26
  Speaker 1: I'm pretty broke, actually pretty broken and terrified really suggested, don't.
• 0:31
  Speaker 2: Be, don't be, no, no, say. The key thing is
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  Speaker 2: New Zealand super is not enough to live on, but
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  Speaker 2: it's the best inflation proof income you can get, not
• 0:42
  Speaker 2: only in New Zealand but in most retirement systems around
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  Speaker 2: the world. So what you need to do is to
• 0:49
  Speaker 2: build up a nest gig to top it up. And
• 0:52
  Speaker 2: Massy University is right. The target should be half a million.
• 0:57
  Speaker 2: And then if you want a bit more luxury and
• 0:59
  Speaker 2: you are be able to go on holidays every year
• 1:02
  Speaker 2: and go and visit the grandchildren in Australia or whatever,
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  Speaker 2: then you probably need a million. But they are targets
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  Speaker 2: and the key thing is to save as much as
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  Speaker 2: you can and enjoy what you're doing for your work,
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  Speaker 2: and to say be careful and look after your health.
• 1:21
  Speaker 2: So gym memberships all that sort of stuff are critical.
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  Speaker 1: Yeah, makes sense, doesn't it. What about for a no
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  Speaker 1: frills household, no children to visit overseas, no desire to
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  Speaker 1: go to every gig and show that comes to Eden
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  Speaker 1: Park or the Caketon and Wellington.
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  Speaker 2: Yeah yeah, yeah, Well then then I still say you
• 1:39
  Speaker 2: need four hundred thousand because you don't know what your
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  Speaker 2: healthcare costs.
• 1:47
  Speaker 1: Where have you gone here either? You are you come back?
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  Speaker 1: You just disappeared there for a bit, Jonathan, just repeat
• 1:51
  Speaker 1: that last.
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  Speaker 2: Sent Think it's healthcare and whether you can get access
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  Speaker 2: to that on the public health system for more or
• 1:58
  Speaker 2: less free. So that's why I live in Auckland. I'm
• 2:01
  Speaker 2: quite close to north Shore Hospital. But if you have
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  Speaker 2: to travel or you have to pay for healthcare privately,
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  Speaker 2: then it may make the difference between life or death.
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  Speaker 2: Having ten thousand dollars in the kiddy, how.
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  Speaker 1: Much has inflation and the cost of living impacted how
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  Speaker 1: much you need to save for retirement?
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  Speaker 2: Yeah, it's put it up by twenty percent. So everything's
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  Speaker 2: gone up, even the basics like food. But the key
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  Speaker 2: things are rates if you're own your own home and insurance.
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  Speaker 1: Yeah, okay, Well, they always say that youth is wasted
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  Speaker 1: on the young, don't they now, considering things will likely
• 2:35
  Speaker 1: get more expensive, should the younger generation prioritize savings for
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  Speaker 1: retirement a whole lot sooner, and a whole lot more
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  Speaker 1: than what they are now.
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  Speaker 2: It depends how much they're saving now. If they're saving
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  Speaker 2: ten percent of their income, that's enough. But if they're not,
• 2:50
  Speaker 2: if they're living week page heat to paycheck or week
• 2:53
  Speaker 2: to week and spending what they make is though you
• 2:56
  Speaker 2: know there's no tomorrow, then that's a big mistake.
• 3:00
  Speaker 1: Do you find that a lot of people get in
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  Speaker 1: touch with you or just do you get the feeling
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  Speaker 1: that most of us are terrified because most of us
• 3:05
  Speaker 1: are asset rich with you. If you own a home
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  Speaker 1: in Graytown or Featherston, it's worth millions anyway, but you're
• 3:10
  Speaker 1: not selling it, are you?
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  Speaker 2: No? No, So there's reverse inuity mortgages. But this is
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  Speaker 2: the problem people that shouldn't be terrified. There's fear doesn't
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  Speaker 2: change anything, but Effectively, what you want to be able
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  Speaker 2: to do is get some cash out of your house.
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  Speaker 2: And when you're living in places like Featherston and Greytown
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  Speaker 2: that you can't do any better quite frankly. But if
• 3:35
  Speaker 2: you're living in Auckland or Willington, you can sell up
• 3:37
  Speaker 2: there and go and live in the provinces and basically,
• 3:42
  Speaker 2: you know, live off the saving that you make in
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  Speaker 2: the difference in the value of the two homes.
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  Speaker 1: Yeah, that makes sense. I'm going to be selling up
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  Speaker 1: and moving into a camping ground, I think. Jonathan Erickson
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  Speaker 1: a superannuation and super fun expert. Thanks for your time
• 3:55
  Speaker 1: this morning. For more from Early Edition with Ryan Bridge,
• 3:59
  Speaker 1: listen live to News Talks it'd be from five am weekdays,
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  Speaker 1: or follow the podcast on iHeartRadio.