Over 50? Time to check you're on track for retirement

Summer of a new year is often the perfect time to take stock. Whether you’re still accumulating, approaching retirement, or already drawing on your investments, it’s worth having clarity on where you’re headed and the steps that’ll help you get there. At Milford, we work with clients across all these stages, but it’s often those over 50 who feel the urgency the most.

They’re typically asking three key questions: How much do I need? Have I got enough? And how long will it last?

The last question is usually the big one. Many people become more cautious with risk as they age. More people than you’d think are reluctant to spend their money – even when they can afford to – and often want reassurance before doing so. Many also want to help the next generation or leave a legacy. For some, philanthropy becomes an important part of the picture too.

No one can predict the future, but modelling your needs against what you have can help to reduce some of the anxiety. If you’re starting to think through the years ahead, here are some useful points to consider.

How much do I need?
How much you’ll need depends on your lifestyle expectations and spending patterns. Start by working out your likely cashflows: day-to-day living expenses plus larger, occasional items like travel, home maintenance, or new vehicles.

Once you understand your spending, the next step is evaluating your investment assets and modelling how best to use them over time. That’s where professional tools and advice can help, because your plan isn’t just about numbers; it’s also about variables and unknowns.

Have I got enough? How long will it last?
These two questions go hand in hand with another important consideration: how long your money may need to last you.

We’re not medical experts, but Stats NZ’s most recent life table shows that a 65-year-old New Zealander today has an average life expectancy of around 86 for men and around 88 to 89 for women. These are averages, not limits. Planning for a range is sensible.

Longevity risk matters. People are living longer, and your assets may need to support you for 25 to 30 years or more after retirement.

What else should I consider?
Healthcare costs are an unavoidable reality of later life. OECD and international studies consistently show healthcare spending rises significantly after age 65 and tends to increase again in the later stages of life. It’s not always pleasant to think about, but planning for it makes things far less stressful down the track.

There’s no single approach to retirement spending, but some common considerations include:

• The impact of inflation
• Interest rate fluctuations
• Support you may want to provide to children or grandchildren
• When to sell or restructure assets
• How much liquidity you’ll need at different stages

These variables are exactly why modelling tools can help show what’s possible and what adjustments might be needed.

Where do I start?
A good adviser can work with you to identify your options and build a diversified, long-term plan that fits your goals. At Milford, we focus on placing our clients’ investment portfolios at the centre of their retirement planning, supported by regular reviews, updates and recalculations. We also invest in the same funds as our clients, which means we’re genuinely aligned with the journey.

No one can account for every possible curveball. But you can build a structured, resilient investment and income strategy that puts you in the strongest position to enjoy your retirement with confidence.

If you’re unsure about your next steps, we’re here to talk things through at no cost and at a time that suits you.