Think again. Financially, working to age 70 can really help to top up the retirement savings. This is a really important point for some baby boomers, as they haven’t had time to build up a large nest egg in KiwiSaver. So for those who are heading towards New Zealand Superannuation in the next 15 to 20 years, perhaps it’s time to reconsider all your options.
Working until age 70 can add around $80,000 to a savings plan (if the extra cash from New Zealand Superannuation is just saved for the extended period of one’s working life). When this is added to KiwiSaver, plus a bit of extra savings, the retirement plan starts to come together.
In my opinion, this is a real win-win. Many people aged 65 and over are highly skilled and add much to the New Zealand economy and society by working longer. There are even studies that show working longer is good for your health.
Financial planning isn’t about chasing the best returns – it’s about having a strategy to help you live your best life. If you are 50 plus, it is time to sit down and consider your options as you plan for what the next 20 – 30 years will bring.
John Barber