How much capital do I need to retire comfortably on ?

[stoploss]

Sorry I agree we are off topic but can't let this slide.
You think an interest free loan provided by the nz taxpayer that needs to be paid back is better than having all your course costs paid for by the nz taxpayer?

not sure how much "courses" cost Aaron but I have seen people via the budget service with student loans up to $ 65,000 ..... Most student loans that I see would be in the 30-40 K range .

[Raz]

not sure how much "courses" cost Aaron but I have seen people via the budget service with student loans up to $ 65,000 ..... Most student loans that I see would be in the 30-40 K range .

That is the lower end I suspect as those that go to a budget service usually have no other professional advisors individually or with family links... in addition they have usually relatively low income, those with higher income are at a threshold to handle the increased margin deduction.


So what rate of return do you consider fair as an assumption on your retirement savings??

[fungus pudding]

not sure how much "courses" cost Aaron but I have seen people via the budget service with student loans up to $ 65,000 ..... Most student loans that I see would be in the 30-40 K range .

That degree is most likely a better investment that someone who does a trade and sets himself up with tools That can cost an absolute fortune, doesn't gain any assistance, and generally will not bring an income comparable to a university education - and certainly doesn't wait for any income level to be reached before repayments kick in. Be realistic - 65,000 won't buy a coffee bar, which at that price will earn peanuts.

[Raz]

That degree is most likely a better investment that someone who does a trade and sets himself up with tools That can cost an absolute fortune, doesn't gain any assistance, and generally will not bring an income comparable to a university education - and certainly doesn't wait for any income level to be reached before repayments kick in. Be realistic - 65,000 won't buy a coffee bar, which at that price will earn peanuts.

The reality is that an university education does not guarantee you a job let alone a well paying one today. That is a distinct change from earlier generations. Even in 1991 only a small number of my my peers secured employment in the professional qualification they studied. Even then only a third completed a degree that even started.

A trade will give you a better chance to stay in NZ and can step up earlier in pay until you body gives out...that is the catch with the trades.

[Baa_Baa]

I think @Roger and @Vaygor1 you're saying that peoples' ability to 'retire' is dependent on their ability to pay for it in spite of inflation, which is self evident, albeit hard to do for most. However fewer and fewer people have that ability to comprehend it, or pay for it, even now, and that will get worse in an inflationary environment which is beginning now and going to get worse.

The cognitive bias which is self evident on this thread is that everyone has saved or will save and invest enough to have a comfortable life after worthwhile employment, either directly or indirectly. That is so far from the truth of reality for the vast majority that it sets aside the discussion here to the elite who have little or no comprehension, involvement or appreciation of the real world or real people.

That in itself doesn't mean the elite who have had the foresight and the ability to position effectively for retirement should be maligned in any way, it merely says that the conversation has devolved to a few elite who have had foresight and the ability to make this their difference. And live happily thereafter. God bless them.

Perhaps this is part of the financial divide we are seeing in NZ, the widening of the gap between those who know and who have, and those who don't know and do not have?