How are you funding your retirement?

There’s a lot to look forward to in the lead up to your retirement. But like most things in life, it pays to have a plan.

Approximately 40% of retired New Zealanders rely on superannuation alone to fund their retirement. The rest use their savings and other sources of income to bridge the gap between what they’re entitled to, and what they need (or want) to maintain their standard of living.

Whether you’re nearing retirement or already there, now’s the time to start thinking about your retirement plan. Begin by figuring out how much money you will need. This will vary from person-to-person depending on their circumstances, finances and their retirement goals.

Then, figure out whether your Superannuation entitlements will see you comfortably through your retirement. If they fall short, factor in any retirement savings (including Kiwi-Saver) and how you might reduce costs and free up extra money to cover daily expenses.

Many retirees invest their money into investments that can supply a regular, reliable source of income throughout their retirement.

We recommend working with a financial adviser to guide you through your investment options and build an investment portfolio that’s suited to your age, stage and risk appetite.

As a rule of thumb, investing in your retirement usually means building a diversified investment portfolio that includes income-producing, medium term investments with a low risk profile.

When determining where to invest your money, you should also consider your overall liquidity, whether you want active or passive investments, and whether the company or provider you’re investing with is transparent and trustworthy.

At Southern Cross Partners, we understand that navigating the investment landscape, especially when you’re using your hard-earned pennies, can be a daunting exercise.

That’s why we’ve built a handy guide to help you invest in your retirement and enjoy the financial freedom you deserve.

Disclaimer: Southern Cross Partners is licensed to provide peer to peer lending services under the Financial Markets Conduct Act 2013. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. We recommend you speak with a financial adviser before making any investment decisions.