If you’ve spent any time thinking about retirement, it can be difficult to grasp what it could mean in terms of the lifestyle you lead today and the lifestyle you may want to have in the future.
Over the past year we’ve been working hard to give members of the Kiwi Wealth KiwiSaver Scheme* a better understanding of what the value of their KiwiSaver investment could be when they’re eligible to withdraw, but then another question often arises: How much might I actually need?
Earlier this year we added the ability to choose a retirement lifestyle within Future You, our online member tool.
This lets you choose between three fixed retirement lifestyle options – No Frills, Flexible, and Deluxe – and get an understanding of the weekly income that might be required to afford that lifestyle. You simply select the retirement lifestyle you desire, and that lifestyle – or goal - was used as the basis of our estimates: You can see how much your KiwiSaver account might give you alongside how much you might need, and explore what options you may have to help close any gap.
Many of our members, though, want to go a step further: they don’t need help working out how much they spend as they already know, or they know how much they might want to spend in the future when they retire.
On that basis we’ve just added a new feature to Future You: the ability to create your own goal.
When using the member tool, simply select the ‘Create your own goal’ panel and enter in the dollar amount for your estimated weekly expenses – the estimates you see in the tool will then be based on that figure. This feature lets you create an estimate that’s potentially more relevant to what you may spend today, or what you think you might spend in the future.
This version of the feature allows you to enter a single figure, assuming you know – or have a good idea – about how much you think you might spend each week. In the future we’re looking at how we might give members more granular control over this figure, potentially entering specific living, “luxury” and holiday costs into the tool to give you even more control over the estimates. Let us know what you think!
* The Future You tool is available to members who are aged between 18-65 and who have not made a transfer from an Australian complying superannuation fund.
The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed, or relied on, as a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any investment decisions.