Planning For Your Retirement
Retirement planning is pretty much the same as Financial Planning, only this time the focus and goal is to ensure a comfortable retirement. What “comfortable” means to you will be very different to others, which is why any article or claim that you need to have $X by the time you retire is at best suspect, and at worst scaremongering.
Unlock Your Future:
Why is Retirement Planning Important?
Retirement now looks very different to what our grandparents or parents experienced. You may never experience a sudden shift from full time work to full retirement as was once the norm. You may even want to keep working. The transition into full retirement is often more gradual now and ‘semi-retirement’ is a new life phase.
You can expect to lead a fairly active lifestyle in your golden years too, and will probably do so far longer than previous generations. This means that you’ll be able to do things you enjoy such as travelling, spending more time on your hobbies and interests, learning new skills, and visiting friends and family – if you can afford to do so.
The earlier you begin to plan for your retirement, the better prepared you will be to make the transition. New Zealand’s Superannuation payment for people aged 65 years + does help cover some expenses, but will most likely fall short on how much you’ll need to live the kind of lifestyle that you want.
A retirement plan will identify your potential shortfall and puts in place the actions you need to take to ensure your retirement years are financially stress free.
The Process:
We follow the same process as Financial Planning but the focus at Step One is to determine exactly what kind of retirement you envisage for yourself. If your goals are wider than just planning for your retirement, we recommend you incorporate your retirement wishes into a full financial plan.
Our Process: How We Set You Up To Live Your Best Financial Life
When you get back to basic principles, achieving your goals shouldn’t be complicated. Our aim is to make everything we do easy to understand and apply.
Our financial planning team has devised a five-step plan to take control of your finances.
01
Where Are You Going?
Working with our leading financial planners, we help you define what you aspire to own, accomplish, and the motivations behind them. Your goals are unique and will evolve with time.
02
What is your starting point?
We conduct a financial health check examining all areas of your financial life. The more details you share, the more robust your plan will be. After all, it’s impossible to create and follow a roadmap without first knowing what your starting point is.
03
Plotting Your Course
Next, we create your tailored financial plan aligned to the Six Financial Elements. What actions do you need to take (or not take!) to get you to where you want to be? Flexibility is inbuilt for life’s little detours – but you’ll always understand the big picture and what needs to be done.
04
Making it happen
At this point, you are free to take your financial plan with you and follow it, or you can engage our brokerage services to do some of ‘the do’ for you. The choice is yours.
05
Staying on Track
If you elect to continue working with us, we help to keep you on track with periodic reviews and provide regular educational information to help you upskill your financial knowledge. It’s our mission to be an integral part of your financial journey throughout your lifetime.
But Isn’t Kiwisaver All I Need?
Kiwisaver is a voluntary savings scheme that helps you put money aside for retirement. You choose a percentage of your salary to be deducted and saved with a Kiwisaver scheme provider. It is designed to help you save for your retirement (or to buy a first house). But if you haven’t contributed enough for any number of reasons (e.g. you started late, contributed only the minimum, withdrew your savings to buy your first home or took time out from working to raise a family), you could find your Kiwisaver balance falls short of what you need.
This is why you can’t rely on Kiwisaver alone and expect it to be enough.
We may be fans of the Kiwisaver scheme, but it should be considered as one of many tools in your retirement planning kit bag. It’s also important that you invest in the right Kiwisaver scheme provider for you. Balancing the returns you need against the investment risk can be tricky and expert advice can help you get it right.
Frequently Asked Questions
While both roles have a place in your financial journey, there are key differences. A Financial Planner in NZ provides comprehensive planning and strategies across all aspects of your financial life. They typically help with long-term plans, retirement planning, and investment strategies. On the other hand, a Financial Adviser may specialize in a specific area like investment management, estate planning, or insurance.
While both financial planning and mortgage advice can be part of a holistic approach to personal finance, they focus on different areas. Financial planning covers a broad spectrum of financial management aspects, including saving, investing, and retirement planning. Mortgage advice, on the other hand, focuses solely on providing guidance on choosing the right mortgage products, understanding mortgage terms, and strategies for mortgage repayment.
A financial planner, like the experts at Smart Adviser, provides advice on how to best manage your financial resources to meet your life goals. This can include guidance on savings, investments, taxes, and retirement planning. The planner helps you create a comprehensive strategy for managing your financial future.
A financial planner gives advice on managing your overall financial health, including investment strategies, retirement planning, and tax planning. A mortgage broker, on the other hand, specializes in helping individuals and businesses find and apply for the right mortgage to suit their needs. While both roles are important, they serve different functions in your financial journey.
Financial planning provides a roadmap for your financial future. It helps you understand how each financial decision you make affects other areas of your finances. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. Smart Adviser’s financial planning services in NZ help you adapt more easily to life changes and feel more secure about your financial future.
Absolutely! A trusted Financial Planner can provide invaluable assistance in mapping out your financial future, identifying opportunities, and helping you navigate complex financial situations. Their expertise can help you achieve your financial goals more efficiently and avoid costly mistakes.
Choosing a Financial Adviser in NZ involves considering several factors. Firstly, ensure they’re registered with a recognised professional body for financial advisers. Look for advisers with a strong track record and positive client testimonials. Finally, make sure you feel comfortable with them, as a good adviser-client relationship is built on trust and open communication.