This brings me to my second point. Are people paying enough attention to what they will need to save to supplement NZ Super to support the lifestyle they want to enjoy after the age of 65?
Over the past four years the average balance for ANZ’s KiwiSaver members aged 65 or over has increased by almost 75%, and now sits at approximately $48,700. This compares to an average balance of just over $28,000 in 2018 and just over $20,000 in 2016.
The average balance for our male members aged over 65 is $52,600. For women aged 65 or older it is $43,600.
I should point out here, data can never tell a full story.
For some, their KiwiSaver fund will be their only investment. For others KiwiSaver will be just one part of a wider portfolio of investments (perhaps including property) that make up their retirement plan.
Members aged 65 or over will have only been in KiwiSaver since 2007 at the earliest. So they won’t have the decades to save that someone starting out now in their twenties will have.
I don’t want people to look at these numbers and give up. Saving and investing for the future is hard, particularly when your focus is on what is in front of you right now and there is so much uncertainty in all aspects of our lives.
But we do need to talk about it, so I hope these numbers spark a conversation and get people thinking about what sort of retirement they would like to have, and whether they are on track to achieve it financially.