You can see how fraught that concept is from the get go.
Why couldn’t you save? You had 40 years. Actually, that’s another aspect of this whole mess that’s changed.
Do you have 40 years? Or 50 years? People work longer so surely a chance to save more?
Superannuation fits an almost unique category of topics that is so entrenched it won't change.
It’s a futile exercise. A few bring it up, only to be beaten down by the time-honoured belief that, for whatever reason, if you get to 65 you are owed something by the state if you paid your taxes.
Of course, your taxes have been well and truly spent. For most people, whatever you handed over is long gone and in that is one of the great sadnesses of the New Zealand economic story.
We have very few net creditors, but a lot of net debtors.
People who actually pay more to the system than take from it are rare indeed.
When I started work in 1982, I took out a scheme whereby if you put a few dollars a week aside you would become a millionaire by the time you got to 60. I had completely forgotten about it, mainly because I stopped paying because I worked out it was bollocks.
I was reminded the other night when a text came through from an old girlfriend who had, when we were together, taken out her own but had stuck with it.
40 years later she was to collect $106,000.
Not quite a millionaire and not really a stunning return on investment.
But what I had worked out all those years ago was the Government were not to be part of my retirement. Why would they be?
Governments let you down. Governments change rules and have their own interests at heart, not yours.
So I sorted myself. Am I lucky? Not really.
Did I work hard? Yes.
Do I care what the retirement age is? No.
Do I care what the rules are? No.
That’s the value of charting your own course and not being beholden to overlords.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
Do you have 40 years? Or 50 years? People work longer so surely a chance to save more?
Superannuation fits an almost unique category of topics that is so entrenched it won't change.
It’s a futile exercise. A few bring it up, only to be beaten down by the time-honoured belief that, for whatever reason, if you get to 65 you are owed something by the state if you paid your taxes.
Of course, your taxes have been well and truly spent. For most people, whatever you handed over is long gone and in that is one of the great sadnesses of the New Zealand economic story.
We have very few net creditors, but a lot of net debtors.
People who actually pay more to the system than take from it are rare indeed.
When I started work in 1982, I took out a scheme whereby if you put a few dollars a week aside you would become a millionaire by the time you got to 60. I had completely forgotten about it, mainly because I stopped paying because I worked out it was bollocks.
I was reminded the other night when a text came through from an old girlfriend who had, when we were together, taken out her own but had stuck with it.
40 years later she was to collect $106,000.
Not quite a millionaire and not really a stunning return on investment.
But what I had worked out all those years ago was the Government were not to be part of my retirement. Why would they be?
Governments let you down. Governments change rules and have their own interests at heart, not yours.
So I sorted myself. Am I lucky? Not really.
Did I work hard? Yes.
Do I care what the retirement age is? No.
Do I care what the rules are? No.
That’s the value of charting your own course and not being beholden to overlords.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
4 comments:
Hosking is far removed from the typical and his observations therefore not practicable for many. But does explain why so many invest in housing, inflation proofed unless the population wanes, something maori, p.i. and many similarly culturally different recent immigrants will ensure does not happen. We have been repeatedly conned to save. I recall Jenny Shipley advocating it as the cure for all NZ''s problems. As a young person I assumed she was expert in mony matters....The money has gone off shore, and investment in NZ is from there, with profits directed according. Money I foolishly saved from first work years has been consistently taxed at from about 65 % (1970s) to 35% minimum. The world is awash with Super fund money chasing dubious gambles. Collapse as 1929 very likely. Catastrophic inflation as Germany, Argentina, Venezuela and near everywhere is forever a very real possibility, and the only easy solution to national debts. Little wonder gold has rocketed. For those who have had savings eroded by inflation, but have some neverthelss, wealth taxes, selective application of National Super etc is very unfair. Our whole system seems flawed. Persons forgo families, the greatest pleasure in life, and live for decades in straightened circumstances, just to leave a giant inheritance to often too old to appreciate offspring (where there are any). There is much logic in the behaviour of the prolific state house bludgers who do not fritter precious time in tedious work.
If this is a plug for private retirement schemes, reader be aware: these are shark-infested waters.
In the 1980s I joined a private retirement scheme which, I noticed some time later, took 75% of my contributions as 'fees'. I wasn't living in NZ so it was easy to withdraw.
There are some good ones out there too. But nothing beats saving and investing wisely. Why pay someone else to do that for you?
Mike wondering why some don't save shows how limited his life has become. Hard to take anyone seriously if this is what they really believe. Even harder if they are just tossing this out as a bit of red meat for the supporters of the NZ Initiative.
At the same time he will complain that his coffee of choice has gone up and who do those people behind the counter think they are. Being paid enough to save as well, ha, the effrontery of such peasants.
Mike great advice. I see so many ppl putting off retirement planning and those who want to retire but can't due to 40 years of frivolous spending.
It simple guys , probably the 80 / 20 rule, 80 % don't plan and therefore are rudderless , 20% do plan and therefore can retire with or without the govt. So Robert Arthur in that regard you are correct, Mike is in the minority, the 20% that got off their ass and planned and saved.
Good on ya Mike.
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