Kiwis less confident on nest eggs

August 22nd, 2012

New Zealanders are less confident that they’ll be able to save enough to fund their twilight years, with the slow pace of the economy and Europe’s protracted debt crisis adding to concerns.

That’s according to ANZ’s second retirement savings confidence barometer, which found 56 per cent of Kiwis are unsure they’ll hit their retirement savings goal, a five per cent fall in confidence since the first survey in April.

the report polled respondents on what level of weekly income they would like in retirement, and then calculated the savings lump sum they will need to meet this. Participants are then asked to rate how confident they are in meeting this.

“For many people this is the first time they’ve been prompted to consider what they are saving towards, so when they match their chosen income with the lump sum required, that’s where the doubt kicks in,” said John Body, managing director of ANZ Wealth and Private Banking.

the bank calculated that to provide a retirement income of $500 per week for 20 years – including NZ Superannuation payments – savers would have to put $415,000 away by the age of 65.

the August report found that younger people were more confident about reaching their savings target, while 54 per cent of men were optimistic about their chances versus just 25 per cent of women.

Of the 61 per cent of those surveyed who are saving, 85 per cent of younger people and 77 per cent of those earning under the average wage say that KiwiSaver is their primary means of saving towards their retirement.

In may ANZ also interviewed 455 people who are saving in KiwiSaver and found 72 per cent of those aged 44 years and younger were not saving before KiwiSaver.

“The survey also shows that while affordability remains a serious issue in terms of joining KiwiSaver and starting the savings habit, it is not a complete barrier for the majority of Kiwis to make regular contributions towards their retirement savings,” Body said.

– © Fairfax NZ News

Kiwis less confident on nest eggs

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