How much capital do I need to retire comfortably on ?

[Raz]

I think life was tougher for my generation in the 60's /70's than it is for the same age group today - OK let's be conciliatory and say just as tough!

It's not really my fault many of my generation are 'accidental milionaires' as a result of a few housing booms ( and exhuberant share markets)

If anything its been a mis-allocation of resources by a succession of governments that have got us into this 'mess'

I would have to concede that those that benefited with the capital gains have certainly supported the status quo. My neighbours in Auckland support migration as their house prices go up believing they have made it and do not care one little bit for the consequences of others from this policy.

[fish]

I don't have a problem with millionaries and people who have done well for themselves and climbed the ladder of success. It is just when they knock out the rungs on the ladder after they have climbed it that I get annoyed.
-For example tertiary education need I say more.
-Also currently unaffordable housing you would have been able to buy at 3 to 4 times your annual income rather than 7 to 8 times, (the reasons for the increase in the housing boom are many and varied I would propose the following,1/ low interest rates and easy money as well as inflation, 2/immigration (foreign buyers can afford boomer houses and why would you accept less for your house from young NZers), 3/baby boomers realizing that although generous, NZ Super isn't enough to live on so with memories of Oct 1987 and recent finance company collapses the good old rental is really the only safe option and world central banks policy is designed to ensure it succeeds.
-In spite of John Key's assurances most people with half a brain know NZ Super is not sustainable we are just now seeing from Diane Maxwell how the next generation will need to adjust their expectations and save hard for the future as well as pay higher taxes in their best earning years to sustain the current boomer cradle to grave gravy train.
- Also you can't blame previous govts. they were voted in by a majority of the population. the last election was a good example. Labour proposed a capital gains tax, compulsory retirement savings, and raising the age of retirement to 67. National proposed changing the flag. Labour has never recovered from proposing what I thought were pretty good policies to address approaching problems.

Life just isnt fair-i would like it to be but cant ever see it happening under our current political system.
Your post isnt fair-times change.
As a baby boomer approaching super age I will feel no guilt receiving it even if I dont need it.
We paid very high taxes-up to 66%-with the expectation that this would fund our super.
Mortgage interest rates up to 20%.
Tertiary education was cheap-but still had to work in the holidays to fund it.
Now you have very generous student loans-no interest and small repayments.
Mortgage repayments on houses a lot less. a fraction
Clothes,cars,food,electrics,travel a lot less.
Just accept it as you are not going to change it.

[winner69]

Life just isnt fair-i would like it to be but cant ever see it happening under our current political system.
Your post isnt fair-times change.
As a baby boomer approaching super age I will feel no guilt receiving it even if I dont need it.
We paid very high taxes-up to 66%-with the expectation that this would fund our super.
Mortgage interest rates up to 20%.
Tertiary education was cheap-but still had to work in the holidays to fund it.
Now you have very generous student loans-no interest and small repayments.
Mortgage repayments on houses a lot less. a fraction
Clothes,cars,food,electrics,travel a lot less.
Just accept it as you are not going to change it.

Good ne fish. Wife applying for National Super so our entitlement goes up eh and we have a bit more for some more treats .... and when we catch the Days Bay Ferry we both go for free, Cool

Hope the likes of Aaron are putting up to 20% of their income aside for when they retire - they might need it

[fungus pudding]

Life just isnt fair-i would like it to be but cant ever see it happening under our current political system.
Your post isnt fair-times change.
As a baby boomer approaching super age I will feel no guilt receiving it even if I dont need it.
We paid very high taxes-up to 66%-with the expectation that this would fund our super.
Mortgage interest rates up to 20%.
Tertiary education was cheap-but still had to work in the holidays to fund it.

I'd point out that very few of us had tertiary education. It wasn't as easy to qualify as it is now, and universities were not geared up to handle the numbers they do today.
My secondary education was in the early 60s. There were 2 streams in the academic class , (don't know if they still grade that way) Now you have very generous student loans-no interest and small repayments.

Mortgage repayments on houses a lot less. a fraction
Clothes,cars,food,electrics,travel a lot less.
Just accept it as you are not going to change it totalling approximately 100 students. Perhaps about 6 or 8 went to varsity.

[Aaron]

Interest free student loans seem reasonable but not when compared to having all your course costs paid for and a small allowance for living expenses that the boomers enjoyed.
Tax rates were high but no tax money was put aside to fund nz superannuation all spent on other things. So this argument (which keeps cropping up) that "I have paid taxes all my life" has been described as vacuous and I would tend to agree. nz super will be funded by current and future taxpayers.
I also don't think we have to accept things the way they are but if you want change you need to stick your neck out and make an effort. I am probably currently comfortable enough not to want to put in the effort other than upsetting the boomers on sharetrader. maybe it will help prepare you if there is ever any backlash when tax rates go back up to 66% to cover health costs and nz super in the future and your feelings won't be as hurt if it happens.

Life will never be fair but that doesn't mean we should give up trying.

Currently trying to put a bit aside for retirement (probably not 20%)as I would feel bad putting my hand out for welfare if I don't need it. I am a bit sad that I have to forgo other things like, new cars, overseas holidays, boats and jet skis but I wouldn't expect others to fund these for me through an overly generous welfare system.

Stop winding me up winner69 I need to work long hours to pay enough taxes to fund your super as well as put some aside for my own.

[Aaron]

Sorry I should change the thread title to overly generous nz super.
http://www.interest.co.nz/opinion/85...er-sustainable
Older workers keeping nzsuper sustainable? Maybe more so if they weren't actually receiving it while they worked. I think aussie super is asset and means tested.

[RGR367]

Sorry I should change the thread title to overly generous nz super. ...............

No. Not generous enough. If it were so, many soon to be retiring baby boomers would not be investing and/or trading anymore. But worry not, you'll get old soon enough. Let us know by then if you still don't want your "retirement entitlement" (sic) when you get to that stage

[Aaron]

No. Not generous enough. If it were so, many soon to be retiring baby boomers would not be investing and/or trading anymore. But worry not, you'll get old soon enough. Let us know by then if you still don't want your "retirement entitlement" (sic) when you get to that stage

No ones going to turn it down and the people will vote in whichever party promises to keep it going so I guess Fish is right even though common sense would say you don't give welfare to those who don't need it, a self centered, greedy, bludging mindset of a majority of NZers will ensure this doesn't change. I don't begrudge NZ Super to people who need it.

[winner69]

No ones going to turn it down and the people will vote in whichever party promises to keep it going so I guess Fish is right even though common sense would say you don't give welfare to those who don't need it, a self centered, greedy, bludging mindset of a majority of NZers will ensure this doesn't change. I don't begrudge NZ Super to people who need it.

Stop winding me up Aaron (he says jokingly)

It's not welfare, it's an entitlement - a little reward for the contribution we have made in making this country what it is today

Was pay day yesterday - might shout myself to oysters and chips for lunch and have a picnic on the beach

[h2so4]

No ones going to turn it down and the people will vote in whichever party promises to keep it going so I guess Fish is right even though common sense would say you don't give welfare to those who don't need it, a self centered, greedy, bludging mindset of a majority of NZers.

They got nothin on you mate.
You need a fair kick up the ass.