8 Retirement Statistics That Should Scare You Into Action

Retirement planning might not be the most thrilling topic, but let’s face it, it’s pretty important. It’s all about making sure you can kick back and enjoy life when the time comes. But having enough for retirement is far from sunshine and daisies… Here are 8 scary statistics that show us Kiwis might need to improve on our planning. 

56% of New Zealanders are living payday to payday.

Imagine waiting eagerly for your paycheck every week, fortnight or month, knowing that without it, you’d struggle to make ends meet. Well, that's the reality for more than half of Kiwis. 56% are stuck in a cycle where they spend everything they earn, leaving no room for unexpected expenses or emergencies.

Over 48% of Kiwis say they couldn’t survive for two months with no income.

Almost half of New Zealanders would find themselves in deep water if they lost their income for just two months. Think about it—no paycheck coming in for sixty days! It highlights how many of us are just one crisis away from financial trouble. Having a safety net for tough times is crucial, whether it's an emergency fund, savings, insurance, or other forms of support.

NZ Super can be only $27,000 a year.

Retirement—the golden years, right? Well, not always. The maximum a single person can get from NZ Super is around $27,000 a year (or about $41,600 for couples). While it helps, it might not stretch as far as you think, especially with rising costs. It’s a reminder that relying solely on NZ Super might not provide the cushy retirement we dream of. Saving extra for retirement is like adding sprinkles to your ice cream—it makes it sweeter.

Only 65% of New Zealanders are investing.

Believe it or not, only about two-thirds of Kiwis are taking the plunge into investing. That means a big chunk of us are missing out on potential ways to grow our money. Whether it’s stocks, property, business, or something else, investing can be a smart move for building wealth over time. Maybe it’s time for more of us to dip our toes into the investing pool!

The average Kiwi expects to need just over $470,000 for retirement (incorrect).

While $470,000 might seem like a hefty sum, it might not be enough to cover all your expenses in retirement, especially if you want to maintain your current lifestyle. Things like healthcare, travel, and leisure activities can add up quickly. So, it's wise to aim for a retirement fund that can support you comfortably for the long haul. It's like planning for a marathon—you want to have enough endurance to cross the finish line with ease.

26% of Kiwis save nothing.

Picture this: more than a quarter of Kiwis aren’t putting any money aside for the future. No emergency fund, no savings for a rainy day. Saving might not sound exciting, but it’s like planting seeds for your financial future. 

Half a million NZ consumers are in debt arrears.

Did you know that a whopping half a million Kiwis are behind on their debt payments? That's a lot of people juggling bills and struggling to keep up with their financial commitments. Being in debt arrears can add stress and strain to everyday life, making it harder to break free from the cycle of debt. It's a sign that many of us could benefit from better budgeting and financial planning to stay on top of our finances.

New Zealanders are over $6 billion in credit card debt.

Yep, you read that right—Kiwis collectively owe over $6 billion in credit card debt. That's a staggering amount of money! Credit cards can be handy for managing expenses, but they can also lead to financial trouble if not used wisely. It's like a snowball rolling downhill—the debt can quickly pile up if you're not careful. This is a reminder to use credit responsibly and to pay off balances promptly to avoid getting buried under a mountain of debt.

So, what can we take away from all this? Well, it's clear that we need to start paying more attention to our finances. Whether it's setting aside a bit of cash for emergencies, looking into smart ways to invest our money, or just being more careful with our spending, there's always something we can do to improve our financial situation. By taking small steps now, we can set ourselves up for a brighter, more secure future. After all, when it comes to money, a little bit of planning can go a long way!