We are very fortunate in New Zealand to have a guaranteed government superannuation scheme which isn’t means tested, and which is available to everyone over 65. The amount is the problem. It’s $374.53 per week for a single person or $288.10 per married person – enough to cover the basics, but nothing more.
The question is how to invest to top up on this base. Recently a pension provider, Lifetime Income Limited, introduced a new pension fund to the market. Investors can lock in a pension for life, based on their age. Today the rates (after tax) are as follows:
Age at first Lifetime withdrawal rate
withdrawal (after tax)
65 to 69 5.0%
70 to 74 5.5%
75 to 79 6.0%
80 to 85 6.5%
This won’t be for everyone, but will have a place in long term retirement planning in this country.
Give WealthDesign a call to see if it is something that would work for you.
John Barber
WealthDesign – a life well planned