FSC produce a Retirement Planning Guide

The Financial Services Council (FSC) have produced a Retirement Planning Guide which introduces people to some key retirement planning considerations.

The guide has a retirement planning overview, a ‘how to’ guide for Sorted tools and explains how to use the NZ Society of Actuaries’ rules of thumb.

The key considerations in retirement planning are how much you should save for retirement and what you can reasonably spend in retirement. The guide gives examples of matters within your control and variables outside your control which will impact on both of these considerations.

The Sorted tools that are particularly relevant are the KiwiSaver calculator and the Retirement calculator and the guide gives some tips on how to adjust these to reflect your situation.

The guide also explains the different rules of thumb developed by The New Zealand Society of Actuaries: 6% rule, inflated 4% rule, fixed date rule and life expectancy rule.

We think that the most valuable step you can take towards securing a good retirement is to get some advice. Although the DIY tools suggested in this guide can be useful in getting you thinking, this is a complex area in which an adviser adds real value. We suggest talking to a financial adviser with the right skills, experience and qualifications to help you set up a plan, monitor it and revise the plan when circumstances change.