NEWS

Retirement is one of the biggest transitions in life — and being financially ready can make all the difference to your peace of mind and quality of life. Whether you’re a few years away or it’s just around the corner, now is the time to take stock and build a clear picture of your financial position and lifestyle goals.

Here are the key areas to review when assessing your readiness for retirement.

1. Understand Your Current Financial Position

Start by listing what you own and what you owe. Think beyond your home or rental properties — include savings, investments, vehicles, and any business interests. Estimate their market value and compare that to your debts, noting repayment terms and interest rates.

Don’t forget your KiwiSaver or any superannuation or overseas pension funds. How much are you contributing, and is your employer matching it? It’s also worth checking which fund type you’re in (conservative, balanced, or growth) to ensure it aligns with your retirement timeline and risk comfort level.

2. Review Your Income and Employment Plans

Next, look at your income sources — salary, self-employment, rental income, dividends, or other investments. Ask yourself:
• Will my income change before I retire (for example, through reduced hours or selling a business)?
• When do I actually want to retire — and is that realistic?
• What income sources will continue after I stop working?

Mapping this out early helps identify whether you’ll have enough to fund your ideal lifestyle or whether adjustments are needed.

3. Analyse Your Expenses and Lifestyle

Understanding your spending is crucial. Review your regular costs — mortgage or rent, utilities, food, transport, insurance — and consider any major expenses ahead, such as home maintenance, car replacement, or travel plans.

Then, picture your retirement lifestyle. Do you want to travel regularly? Take up new hobbies? Work part-time? These choices directly impact how much income you’ll need.

It’s also worth identifying which costs might drop after retirement — perhaps you’ll have no mortgage or commuting costs.

4. Plan for the Long Term

Retirement planning isn’t just about stopping work; it’s about how you’ll live for the next 20–30 years.

Consider where you’d like to live — staying in your current home, downsizing, or relocating. Set a target income for your retirement, such as $60,000 per year after tax, and decide how long you want your plan to cover — for example, age 85, 90, or 95.

This helps ensure your savings, investments, and pension drawdowns are structured to last as long as you need them.

5. Think About Risk, Health, and Family

Health and family circumstances often influence financial planning. Assess your health now and consider any potential medical or care costs.

Do you have dependents — a partner, children, or others you support financially? Ensure your estate planning is up to date, including a will and enduring power of attorney.

And review your investment strategy — is it aligned with your comfort level for risk at this stage of life?

6. Clarify Your Goals and Values

Finally, reflect on what truly matters to you. Are you aiming for financial security and peace of mind, or do you want the freedom to travel and explore new interests?

Is leaving an inheritance important, or is your priority to enjoy your hard-earned savings now? Understanding these goals will help shape the financial plan that supports your lifestyle and values.

Retirement planning isn’t just about numbers — it’s about aligning your finances with the life you want to live. By taking time to review your assets, income, expenses, risks, and goals, you’ll have a clear roadmap toward a confident and fulfilling retirement.

If you’re not sure where to start, working with an accountant or financial adviser can help turn this self-assessment into a tailored retirement plan that gives you clarity, structure, and peace of mind.

 

Disclaimer

This information is intended to provide general advice only. We recommend you discuss your specific situation with your Accountant.