Planning after 65

Reaping the rewards of the hard work

Age 65 has traditionally been when people aim to finish work. However, from our experience, a number of our clients wish to continue working, to get the mental stimulation and experience of the community at work. Other people are chafing at the bit to end work, or to change how they work.

This is the time when you reap the rewards of the hard work of repaying your mortgage (if you have chosen to be a home owner), and of contributing to your KiwiSaver account and building up an investment portfolio. This is the time to start thinking about this question in preparation for retirement: 'If it didn't matter what income you earned, what would you do with your time?

However, it can be a scary time, as you transition from having a regular income to living off those investments. This is also the time where your money has to continue working for you, so that the purchasing power of your money keeps up with inflation and lasts as long as possible.

The change of mind-set is often difficult, and working out how to set up your income and drawings (on top of NZ Superannuation) takes time. Moneyworks helps our clients with the technical calculations as well as adjusting to the change of mind-set.

A core part of the work that we do with our clients is working out how long their money will last, based on their anticipated spending. This may mean that some clients need to work a little longer to fund that future income and save a little more, but making sure that your money is well invested is crucial.

If you have surplus funds after you have retired, it may be time to think about gifting small amounts to your family on a regular basis to help them out. After all, you could live to be over 95 - and how old will your children be then? 65? 75? - retired themselves.