Living longer means saving more
New Zealanders are living longer: a lot longer and we can anticipate that our life expectancy will continue to rise in the years to come.
The most recent national population projections (2014) show 1.3million Kiwis will be aged over 65 by 2041, accounting for almost one quarter of the total population. By that time, more than 220,000 Kiwis are expected to be aged over 85 [source]. In 2013 there were just over 600,000 New Zealanders aged 65+ [source].
Most adult New Zealanders underestimate their likely lifespan [source]. Data collected in the 2009 Financial Knowledge survey suggested about 65 per cent of adult New Zealanders underestimated their likely lifespan, 15 per cent overestimated and only 20 per cent got it about right.
Managing multiple financial objectives and risks in retirement is complex and many Kiwis may need to react to longer expected lifespans by trimming their retirement income ambitions, saving more and/or working to later ages.
Check how your retirement plans are tracking with Mercer’s Retirement Income Simulator. Simply log in to your online account to access the tool personalised with your information.