They tell you how much you might need to retirement.
In the city... two people in a house... want to live comfortably... need $1 million.
$450,000 in the provinces.
Now, you then start working backwards. In terms of your net worth.
Depending on your age, you may not be able to rely on the pension.
Some government will eventually means test it or change the age or cut it back. It's inevitable.
So there's a shortfall you're probably going to have to fill.
KiwiSaver contributions need to go up. And they are. Slightly, from 3 to eventually 4%.
But realistically, we'll need to be doing 10%.
And I know people are doing that - who are, even in their 30s, going hard on saving and investing for this express purpose.
So people are planning and working hard. Slogging their guts out. Just being responsible and making sure they can take care of themselves and their families.
Which is why it smacks of entitlement that politicians live in a different world on super. Totally different world.
They get a super subsidy 2.5 times the percent they contribute from their salary, up to a maximum payment of 20 percent.
RNZ reported earlier this year that a backbencher gets $170,000. 20 percent of that would be about $34,000
We get dollar-for-dollar from our employers up to 3 percent.
The argument is their jobs aren't secure, so they need more security.
They aren't the only ones in that situation. But they are the only ones I know of who get retirement nest egg like that.
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
5 comments:
Yes much is said about how much superannuation costs the country, but has anyone ever asked just how much ex MP’s continue to cost the country in free travel etc. Bottom line-life is uncertain for everyone!
We are in our late 70s.
Our modest, but very comfortable hoiuse in a very nice part of NZ, house is (almost) freehold, and we own no other major assets except a couple of quite reasonable, modern, motor vehicles.
We enjoy, and always have, good food, and modest amounts of good quality alcohol as part of our daily life.
We emjoy good health, but not without the odd hiccup.
We care not about the latest cellphones or overseas travel, but my wife has seen quite a bit of the world, through her hobby and passion.
We retired with no savings, and still have no savings of any consequence.
We must be very stupid and foolhardy people, according to Massey University.
Our only income is our NZ superannuation some 12 years ago.
How have we survived?
I have learned to live very well frugally.
A good sized feezer is the key.
Buy food frequently, when on sale/reduced.
We love cooking, and as a consequence, eat far better than most households.
We stay active in our community and still play a bit of sport insurance years ago - I paid a fortune and as premiums increased way beyond what we could afford, that went into the luxury bin. (my wife did have 2 knee replacements covered whilst covered by medical insurance, so no major complaints, so to speak).
The state of, and ease of access to our health system in recent years gives me the..(lets just say you need a good dose of Imodium to fix it)
We are concerned at rapidly increasing cost of insurance, rates, power etc for those of us on fixed incomes.
That is an out of control rort imho.
Other day to day costs?
Fuel, we don't travel huge distances very often.
Clothes and other stuff - China has changed the game. We want for little in material things.
Visit op shops and resource centres for bargains, things you didn't know you needed, and a new, fun hobby.
I contributed to a blog yesterday about the need to keep teaching home sciences, recently removed from school programs, I believe.
Somebody commednted that teaching budgeting was vital.
I commented that teaching basic cooking (and perhaps learning the joy and pleasure of great, simple food on a regular basis) was far more important, in my opinion.
It's no good teaching budgeting if your world vision is takeaway and pre-packaged junk food.
So, in our case at least, this academic bullshit about the need to have vast amounts of money bewilders me.
We owe nothing to our kids, and all your stuff will most likely end up at the resource centre anyway, 5 minutes after you've kicked the bucket.
Things are worth bugger all.
People, friendship and animals are important.
Ameni
Stuff reports a NZ family of four pays $10,000 more for groceries each year.
The average power bill in aus is $2133. NZers pay $2527 despite cheap hydro generation with a mere 15% expensive fossil fuel generation verses 64% of aussie power generated by expensive fossil fuels
Mr Luxon identified the bizarre super profits of NZ's grocery and electricity companies 2 years ago and told us it needed to be fixed.
So how has Luxon fix it?
He asked the dishonest Finance Minister who can't remember numbers to put it right.
Nicola Willis looks and sounds more and more like the mysteriously wealthy Ardern as time goes on.
And Willis has a new side kick in Simon Watts.
Is Watts the National party's Grant Robertson?
MP : Best job going... pity competent people do not go for this.
To anon @ 6.47
Are you the far left miserable whinger that blamed David Farrar for YOUR woes? I'm guessing by your negativity that you are one and the same.
You start off by saying " Stuff reports" therefore your first 2 words and the rest of your post holds no weight. Don't believe the media, especially the far left stuff propaganda.
If you are indeed the same miserable far left whacko who whines about everything and blames everyone ( as you have done in this post) then I'm no longer happy to debate electricity prices or the supermarket situation with you as don't have the mental capacity to do so. Suffice to say, your reasoning is wrong ( as usual).
Go home switch off your internet, do youself and everyone else a favor.
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