Planning for the future

You have choices about your future working life. Your income, health and aspirations will all play a part in your decision when and how to retire. The key is planning and collecting information. Here are some things to think about.

Considering retirement from paid work

Your decision to retire from paid work will be influenced by many factors, including:

• Your ability to save for retirement, your income additional to national superannuation, and your home ownership
• Level of health or disability that affects your ability to continue your work roles safely
• Early retirement policies which can serve as an incentive to retire
• Superannuation earnings rules or income testing that can be disincentives to continuing work if your superannuation is abated
• Private pension plans and features where staying at work longer may mean getting better returns on contributions
• Opportunities for employment for older workers. Reduced opportunities may limit choice.

Transitions

Some employers offer retirement planning courses or information and support for their older workers. Increasingly, employers may offer flexible work conditions and hours to ease the transition from work to retirement. Discussing options with your manager directly or through the human resources department, workplace employee assistance programme, union representative or occupational health and safety service are all ways of finding out about retirement policies in your workplace.

Preparing financially for retirement will include finding out about pension entitlements, employer superannuation schemes, private pension plans and financial and legal issues such as savings plans, investments, family trusts and protection of property provisions.

Key fact

• Income: New Zealand Superannuation (NZS) only gives an annual income of around $11,400 - $14,800 per person (net, after tax at 'M' rate). This will rise by around $11 per week after the October tax cuts.

Information

The Office of the Retirement Commissioner is a source of up-to-date information on planning for retirement. GO TO their website at www.sorted.org.nz.