These days, if we want something we buy it. If we don’t have the money, we use credit and pay it off later. Unlike our parents, we’re more likely to think about the now than plan ahead for the future. And that’s bad news for the state of our retirement.
Articles get published all the time about how much money we should have saved by the time we were X years of age (like this one) – and frankly, they can get us down a bit. Some people reckon we need a mere $100,000 in the bank to retire (which is still a massive amount to many people), while others say a million dollars is more like it. The fact is, while there’s a lot of conflicting information out there, today’s Superannuation isn’t enough for many New Zealand retirees to live on, especially those who don’t own their own homes. Unless we’re happy to live a no-frills life of baked beans on toast, op-shopping and zero holidays for the entirety of our retirement (which thanks to longer life spans could be roughly 30 years), it’s wise to supplement our Super ourselves – starting now.
The stats are pretty sobering when you stop to think. At the moment, roughly 750,000 New Zealanders are over the age of 65. The government currently spends about $30 million a day on superannuation. By the middle of this century it’s estimated that we’ll have almost 1.5 million retirees (assuming the retirement age stays at 65), which means Super will increase to a whopping $98 million a day (yes, you read that right). That’s a lot of money – and who knows if the government can afford that?
In a recent survey carried out by the Financial Markets Authority (FMA), 80% of respondents aged 18-29 had a KiwiSaver investment (good) but this age group, particularly women, was more likely to be less confident and knowledgeable about their investment than other demographics (not so good). On top of that, many people don’t know what fund they’re in, how much they’re on track to have saved for their retirement or how much they’re paying in fees.
Buying property is a great way to boost the state of your retirement. But in today’s real estate market, home ownership is becoming increasingly difficult to achieve. That’s why equity (or property) crowdfunding with a company like The Property Crowd could be the answer for Kiwis to get a leg-up on the property ladder. Put simply, equity crowdfunding enables multiple people to pool their resources and buy PropertyShares in residential property. If you own PropertyShares, you enjoy shared ownership in a property. The obvious advantage over regular property ownership is that you don’t need to pull a five- or six-figure deposit out of somewhere, nor do you have to sign your life away to a mortgage that you may never pay off in your lifetime. Spending as little as $100 on PropertyShares will help you build an investment portfolio that could set your retirement up for success.
If you imagine your retirement to be full of travel, luncheons and golf, government-funded superannuation isn’t going to get you there. Whether you’re 20, 30, 40 or 50, start planning for your retirement today. Besides, what’s the worst that can happen? A more comfortable lifestyle when you’re 70? Exactly.
Keen to find out more about how equity crowdfunding could help you start your own investment portfolio? Talk to the friendly team at The Property Crowd today.
Latest posts by Erin Reilly
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