How can you live your best life after 65?
Forget the comfy slippers and golf club membership – retirement is changing beyond recognition.
How? For starters:
- nearly one in four people aged 65 plus are now in paid employment, and numbers are expected to keep rising
- staying on at work may be good for your health. Studies have found that working even one year past 65 can extend your life expectancy and cut the risk of serious health problems
- on average, 80% of 65-year-old women in New Zealand can expect to live to 94, and men to 90.
- by 2038, older people will make up almost a quarter of the population
The message is clear: we’re living longer, working longer and staying healthier, which means traditional ideas of retirement are no longer relevant.
And that means planning for your retirement has to change too.
Thinking about the future now will make it easier to figure out how much money you’ll need to live the life that suits you after 65.
Some investors choose to prepare for retirement by investing in term deposits, which are a way to lock away money and earn a fixed rate of return – although at relatively low interest rates.
For investors who are prepared to take more risk for potentially higher returns, Glen Macann, Kiwi Wealth’s Head of Advice, suggests a good option can be managed funds.
“Kiwi Wealth’s managed funds are an efficient way of investing, you can access expert investment management, the benefits of diversification and all for a reasonable fee.” says Glen.
When you invest in a managed fund, your money is pooled with other investors’ money and invested in assets such as cash, fixed interest and shares.
Because Kiwi Wealth’s managed funds invest in shares they’re expected to bring higher returns over the long-term than a savings account or term deposit and you can withdraw money from your investment when you need to.
They’re also easy to invest in. You can open an account with Kiwi Wealth Managed Funds for as little as $500, and make regular contributions from only $50.
Here are just four of the ways Kiwi Wealth’s managed funds could help you prepare for life after 65:
- 1. If you plan to keep working into your 60s and maybe even your 70s, managed funds can diversify your investments and give you an extra income stream besides New Zealand Super and KiwiSaver.
- 2. “You can even set up a regular withdrawal for $100 or more as an income stream from your managed funds account.”
- 3. If you want the flexibility of being able to withdraw your money whenever you need to, you could set up multiple managed fund accounts like medical expenses account or holiday account.
- 4. If you want to set some money aside for your children, you could set up an account with a managed fund as an inheritance fund.
Whether your retirement will be about continuing to work, retraining, volunteering or competing in your first triathlon, managed funds could be a way to help you achieve your goals.