How much capital do I need to retire comfortably on ?

[JBmurc]

Wait I have just worked out who you are referring to when you mention taxpayers who contribute more through GST. There would be a group of NZers who might be contributing more through GST than income tax. Heavily leveraged property investors they could be cashing in or drawing down on their tax free capital gains not contributing a cent in income tax. What I envy most about this group is that they are the ones central banks are protecting with easy money and low interest rates while they screw over savers and people on fixed incomes or wage earners whose pay rises don't match the inflation rate (think property price inflation not the CPI bulls***t). Its a crazy financial system we have.

Yes a system that at it's core has been extended by the lowering of leading rates >> then you add in the fact the average consumer has been forced to take on more household debt to keep afloat ....

then at the core of pretty much modern man is Energy >> which is at record Low prices ...now this is not because the world is finding more cheap energy but because the OPECS of the world are pumping it out at higher rates to keep afloat as the price falls ....the basic scale of business if profit margins drop increase sales etc >>but this isn't going last much longer if the world isn't replacing reserves of energy>>

the falling EROI – Energy Returned On Investment in oil and gas industry. Unfortunately, most of the public and energy analysts still don’t understand how the Falling EROI is gutting the entire system. They don’t see it because the world has become so complex, they are unable to connect-the-dots. However, if we look past all the over-specialized data and analysis, we can see how bad things are getting in the global oil and gas industry.

https://srsroccoreport.com/warning-t...to-stay-alive/

[Aaron]

Gutless PM recognised by the media. To be fair no politician can (or has) mention(ed) this issue without boomers going into a apoplectic rage and voting them out as soon as they get the chance.

https://www.stuff.co.nz/business/101...o-someone-else

Maybe Jacinda can pleasantly surprise us in the first year of her next term in govt.
Steven Joyce would have to be the front runner for new leader of the National party. I have never heard him speaking on tv and sounding bad. Also knows how to take a dildo to the face. Judith Collins yuk she comes across as a bitch. Simon Bridges seemed ok but looks like he enjoys being a twat and slowing up the political process and bureaucracy to points score in opposition.
And so I don't come across as a misogynist Amy Adams has probably been very competent at what she did as I never heard from her when national was in power. But pragmatic competent hardworking people aren't as popular as show ponies.

[Beagle]

I agree and see that as a minimum target BUT here's another perspective from some retiree's I know well.

Mary has retired and lost her second husband to cancer many years ago. She lives in Turangi and is actively involved in the community and has very little in the way of retirement savings BUT she makes jams and pickles and knits colourful baby booties with pictures of cute farm animals on top which she sells at the fortnightly markets down there, often to tourists passing through. She makes about $300-400 per fortnight and she lives reasonably comfortably on that and her national super in her unencumbered home there which is basic and not worth much more than $100K but she seems happy enough.

Sylvia lost her husband a few years ago and lives on the National super plus a modest super policy her husband took out many years ago which pays for the monthly management fees, (about $550 a month) in the village she enjoys with a supportive and caring community. Her son manages a very small portfolio which pays her another $60 a week and she seems happy and well able to meet all her bills and travels down to see her extended family in Southland quite often.

Neil and Chris didn't have any money when they retired, in fact due to non existent retirement planning, excessive spending and some unfortunate events they still had a $200K mortgage on their modest Auckland family home. They love animals, (former manager of Animal welfare centre in Auckland), and didn't have enough room for their many different animal's and strays they took in at their home. They traded down to an nice unencumbered 8 acre property in Te Kuiti which cost around $250K from memory and run a full suite of chooks, pigs, sheep, goats e.t.c. as well as domestic animals they love including cats and dogs and seem very content. The bonus is they're close enough to Auckland and have room for their kids to come visit on the weekends and the kids seem to like having a break from Auckland.

Proof that you don't need an absolute fortune to retire on ?

Others I know have converted part of their house into a separate flat and rented it out and seem to be doing fine on one lot of rent plus the Supernanuation.

I wouldn't advocate aiming too low but I think we can all agree that human beings provided they're adaptable are capable of more than one way of skinning this retirement cat.

There's also the point that there's absolutely no guarantee whatsoever that you'll make it to say the age of 70 and even if you do its odds on favourite that you'll enjoy spending that XYZ amount of discretionary spend a lot more in your thirties, forties or fifties than you will in your nineties. Food for thought ? I think a balanced approach is best.

I've probably erred on the side of enjoying it as you go a little too much but you've got to call this thing as you see it.

I think some people need to relax a bit more and re-read this post.
https://www.workandincome.govt.nz/el...ent-rates.html

[Aaron]

I think some people need to relax a bit more and re-read this post.
https://www.workandincome.govt.nz/el...ent-rates.html

Me??
My issue is with national super welfare payments going to everyone even if they don't need it. I certainly wouldn't advocate for stopping welfare for people who need it.

[fungus pudding]

I think some people need to relax a bit more and re-read this post.
https://www.workandincome.govt.nz/el...ent-rates.html

My accountant says you can run your car on the universal superannuation, or buy your booze - but you can't do both.
He's right.

[Beagle]

Me??
My issue is with national super welfare payments going to everyone even if they don't need it. I certainly wouldn't advocate for stopping welfare for people who need it.

The key issue remains is it superannuation into which people have legitimately paid into for all their working lives through the tax system or is it welfare as you've suggested ?
I subscribe to the superannuation school of thought and they are therefore entitled to it notwithstanding any other arrangements they've made for their retirement or even if they choose to still be working. (Note the link I provided earlier notes these payments as superannuation payments).

[RGR367]

Me??
My issue is with national super welfare payments going to everyone even if they don't need it. I certainly wouldn't advocate for stopping welfare for people who need it.

Hoping they still pay you one when you become entitled. You can just not apply for it though when you think you have enough savings when the time comes

[fungus pudding]

Me??
My issue is with national super welfare payments going to everyone even if they don't need it. I certainly wouldn't advocate for stopping welfare for people who need it.

The consequences of stopping the universality of superannuation mean it's best left alone.

[macduffy]

Me??
My issue is with national super welfare payments going to everyone even if they don't need it. I certainly wouldn't advocate for stopping welfare for people who need it.

You'd better have a word with the Deputy PM about this, Aaron.

[blackcap]

Me??
My issue is with national super welfare payments going to everyone even if they don't need it. I certainly wouldn't advocate for stopping welfare for people who need it.

Right out the door goes the incentive that is implicit in Kiwisaver.... et al.