How much capital do I need to retire comfortably on ?

[Bjauck]

I hope that you guys are not thinking of cutting National Super.

Mine starts this week ..... A bit of extra cash for things like oysters and chips on the beach and other treats.

I don't really need it but it will be good to spend. After it is rightfully mine as the government has been putting a bit aside for years. My Dad said 'one and frippence of your tax pound goes towards your retirement son'. The JP who witnessed my application said 'no your Dad was wrong, it was one and sixpence'

That National Super is rightfully mine. I will selfishly accept it (taxable bugger it) with glee. So no talk of taking it away. It is up to you young uns to work out how to pay for it

Congrats to W69 for reaching the Golden Years with money in his back pocket! Your post reminds of when I was in England and visited Blackpool beach on a midsummer day. There was a long row of deck chairs each with a dour senior in winter clothes with a newspaper wrapped bundle of chips. It reminds me of the reputed last words of King George V "Bug**r Bognor". Take your super and run, for it may be the end of the Golden Weather. Gen X may not be so lucky.

[Aaron]

Like I said, Trusts are a "can of worms" and will garner debate from a moral and ethical perspective so with all due respect to those of you who have already vented their spleen and other contemplating doing so, perhaps that's best left to its own thread that you are most welcome to start.

Granted these two topics are linked but perhaps now.... we can get back to the main thread topic.

Fair enough Roger.
Now how much income do you need to retire comfortably? W69 says he doesn't really need his national super (happy birthday by the way). Why would the govt (we the people of NZ) pay welfare to someone who doesn't need it (absolutely crazy). Nothing personal W69 I just don’t think welfare should be paid to anyone who doesn’t need it.
The govt hasn't been putting anything aside for years. It did for a while but I think it was spent on "Think Big". Michael Cullen had a wee go at it with the Cullen Fund. Here is a link to our Balance Sheet as at 30/06/2014. Which line is the one showing the money put aside and invested for National Super.
http://www.treasury.govt.nz/governme...d/jun14/19.htm
I see the deficit was $2,933,000,000 ($56mill a week) Better check that as even I find it hard to believe.
Before anyone bangs on about other beneficiaries such as solo mums please check “Note 6: Transfer Payments and Subsidies” looks to me like half of social welfare spend is NZ Super at $10,913mill with sole parent support at $1,222. Family Assistance at $1,965 is the next biggest.

Anyway stop winding me up you old b***tards I have to focus on work as I need to save enough for retirement as time is running out.

[Harvey Specter]

Aaron - Super is an entitlement, not a benefit. Just like free(ish) education and hospital care for all NZ citizens, no matter how wealthy you are.

[Biscuit]

Aaron - Super is an entitlement, not a benefit. Just like free(ish) education and hospital care for all NZ citizens, no matter how wealthy you are.

According to the wikipaedia:

An entitlement is a government program guaranteeing access to some benefit by members of a specific group and based on established rights or by legislation.^[1][2] The term may also reflect a pejorative connotation, as in a "sense of entitlement". A "right" is itself an entitlement associated with a moral or social principle, such that an "entitlement" is a provision made in accordance with a legal framework of a society. Typically, entitlements are based on concepts of principle ("rights") which are themselves based in concepts of social equality or enfranchisement.

W69 might have a sense of entitlement but then so do many other beneficiaries

[huxley]

That doesn't excuse it from scrutiny...

[Aaron]

Aaron - Super is an entitlement, not a benefit. Just like free(ish) education and hospital care for all NZ citizens, no matter how wealthy you are.

The money raised from the people of NZ will be spent how our elected leaders decide and our vote is our chance to have a say in that decision.

Tertiary education used to be a "right not a privilege"(or an entitlement if you will) but if I recall correctly in 1992 student fees came in and have been increasing ever since. Now do the maths if the last boomer was born in around 1964 add say 28 years and you will see that tertiary education became unaffordable about the same time as last baby boomer graduated.

I just think that the people of NZ's money should go to help those who need it. Based on history I am guessing national super will become unaffordable sometime around 2029. (1964+65)

P.s. sorry to be off topic again. In a way the national super debate is an important one for many NZers as they may be relying on it if they haven't accumulated enough capital. Will try to keep political discussions on the right thread.

[huxley]

the younger crew on here may be interested in this :
http://www.radionz.co.nz/national/pr...s-and-legacies

[Aaron]

the younger crew on here may be interested in this :
http://www.radionz.co.nz/national/pr...s-and-legacies

Thanks Huxley also a quick summary here
http://www.stuff.co.nz/business/mone...h-roger-and-me
At least he has a minimum savings target of $620,000 and plenty of time to save in case NZ Super is actually unaffordable.
Young people should stop feeling sorry for themselves and take an interest in their country and the people and policies we elect to represent us and shape society. Whinging isn't an option doing something about it is. Labour had two policies to address the affordability of national super. Raising the age of retirement and compulsory retirement saving. They also proposed a capital gains tax (weakened by own home exemptions(bad idea)but necessary to ensure at least a couple of votes) to spread the tax base. Possibly even making it fairer. These are unpopular for the individual but might have been good for NZ as a whole. Labour got slaughtered at election time and we will get the society we voted for in the long run.

[artemis]

Mr English has said no to a CGT but that the Budget will put more dosh into IRD compliance.

Which has a good return if past experience is anything to go by (Hansard last month):

Hon JO GOODHEW: Last Budget this Government actually provided an extra $132 million to Inland Revenue to bolster its tax compliance activities, and, boy, has that been good value for money. Targeting the hidden economy, tax avoidance initiatives returned nearly $50 million—$5.51 for every dollar spent. Targeting property speculators returned $52 million, a return of $7.88 for every $1 invested.

[winner69]

The Social Security Act 1938 - a Social Security Tax of one shilling and sixpence in the pound is introduced to fund both social security benefits and health costs but is later merged into standard income tax rates.

That was the promise.


National Superannuation, as introduced in 1976, was seen as an inter-generational social contract. Each generation in retirement would be funded by their childrens' contributions, not by their own. The rationale being that the way to secure a prosperous retirement was to invest in our generation of children, rather than being 'encouraged' to save more

That was the new contract

I have invested in my own children and their friends (and society in general) to ensure they have a prosperous nation to give me a 'prosperous retirement'. Just hope they see the light of day and don't shirk their responsibilities.

Sorry for hijacking your thread Roger. To answer your original question - BLOODY HEAPS but don't dare tamper with my National Super. If you don't achieve BLOODY HEAPS I'm sure you will still enjoy a fulfilling and happy life with your family and friends.