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You work hard for it, and your hopes and dreams for your future, and that of your family, are inherently linked to it. Retirement savings don’t just appear out of nowhere on your last day of work. There are several actions you can take in each decade of your life that will help ensure you are set up to enjoy your later years.
Imagine your retirement fund is a tree that you plant at a young age and tend to over the years so that by the time you finally retire, there’s plenty of shade to relax under and lots of delicious fruit to feed you and your family. It’s more important now than ever to put a sound plan in place to get you to where you want to go.
Below are our top tips for all your life stages, to help you retire comfortably.
20s
Your 20s bring great potential and opportunity for getting yourself on the path to financial security. Start by considering an emergency fund and a Will, opening a KiwiSaver account, and try to avoid consumer debt. In your 20s your biggest asset is likely your ability to earn an income; consider engaging an insurance specialist to understand what personal risks you can insure against.
30s
With a little more financial stability under your feet, your 30s are your time to shine, and to really set yourself up for your future. These are the years to work on eliminating personal or student debt (starting with the highest interest rate first), consider purchasing a house, and if you have, or plan to have, children then now is a good time to put some money aside for their future.
40s
In your 40s, broadening your investments can boost your future retirement lifestyle. Focus on paying down your mortgage, growing your investment portfolio, and ramping up your KiwiSaver contributions. Although this is not always an easy conversation to have, you could start discussing finances with your parents, as it is important they have a sound financial plan in place.
50s
With that long-sought retirement drawing nearer, protect the assets and investments you’ve built through diversification and sound planning. Now is a good time to firm up your retirement goals, review your risk profile, diversify between investments. Estate planning should be considered throughout your life-stages and it’s always a good idea to ensure your Will is up to date. While checking on your Will, why not consider setting up an Enduring Power of Attorney that can be acted upon should you become incapacitated. Appropriate professional advice is important here.
60s
In your 60s and onwards, the choice is yours. You’ve worked hard and you’ve got there! Now is the time to enjoy the fruits of the tree you planted through your planning, saving and investing. Enjoy the lifestyle you’ve earned, and continue planning for what the future may bring. If you haven’t already, seek advice on how much you can afford to spend each year, and if your current investment portfolio remains suitable.
Disclaimer: Milford Funds Limited is the issuer of the Milford KiwiSaver Plan and Milford Investment Funds. Please read the relevant Milford Product Disclosure Statement at milfordasset.com. This article is intended to provide general information only and does not take into account your personal circumstances. Should you require financial advice, please speak to a Financial Adviser. The disclosure statements of all Milford Financial Advisers contain more information and are available for free on request. Past performance is not a reliable indicator of future performance. Investment involves risk and returns may be negative as well as positive. Visit milfordasset.com/getting-advice to view Milford‘s Financial Advice Provider Disclosure Statement.
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The articles, blogs and other materials appearing on this page are intended to provide general information only. They do not take into account your investment needs or personal circumstances. They are not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to a Financial Adviser. Past performance is not a reliable indicator of future performance. Milford Funds Limited is the Issuer of the Milford KiwiSaver Plan and the Milford Investment Funds. Please read the relevant Milford Product Disclosure Statement at milfordasset.com/documents. For more information on our financial advice services and to view Milford’s Financial Advice Provider Statement please visit milfordasset.com/getting-advice