BetterSaver in the news: Back to work at 68? - Blog - BetterSaver
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BetterSaver in the news: Back to work at 68?

May 16, 2022

Joe Taylor
Joe Taylor

Last week, I chatted to Newstalk ZB and NewsHub about a scary reality: Kiwis in their 30s could run out of their KiwiSaver cash less than four years after retiring.

You can read the NewsHub article here. If you prefer to listen, here’smy chat with NewstalkZB.

We analysed the retirement prospects of Kiwis in balanced funds earning the average wage, with average household expenditure for where they live, as well as the national average current KiwiSaver balance of around $26,000.

The results were alarming: A 35-year-old Kiwi earning the national average wage could have enough retirement savings, factoring in inflation, to last just three years and seven months. At 65, the KiwiSaver member would have around $468,000, which is equivalent to approximately $264,000 today.

Around the country, things didn’t look much better:

  • Aucklanders could fare slightly worse than the national average, with enough retirement savings to last just three years and five months due to high living costs ($511,000, equivalent to about $288,000 in 2022).

  • A 35-year-old Cantabrian earning the average regional wage could expect to have slightly less - about $443,000 (equivalent to around $249,000 in 2022) - at retirement, but due to lower living costs than other major centres, could fare similarly, with three years and five months' worth of retirement savings.

  • A 35-year-old earning the average regional wage in Wellington could fare slightly better, with three years and 10 months’ worth of retirement savings, or around $555,000 (equivalent to just shy of $313,000 in 2022).

So, why is this happening?

The value of a dollar is plummeting. A few hundred thousand dollars might seem like a lot today, but it won’t be nearly enough to retire within a few decades.

OK, but what can I do about it?

The easiest thing you can do to future-proof your retirement is to get in a better KiwiSaver fund. A better fund could be the difference between a comfortable retirement and not being able to retire at all.

Find your ideal fund here using our free, five-minute fund finder tool.

We have also just released a free online tool that helps you estimate how long your KiwiSaver balance could last.