‍Simon shares his dreams for retirement and how prioritising KiwiSaver has set him on the right path.

As I sit here on the sand-and-pebble beach of Lake Taupo, where I have holidayed since I was a kid, I consider previous New Year’s resolutions I’ve made and how, for the most part, they were a waste of time.

Some stayed in place for a few months and, if I’m totally honest, some only lasted for a couple of days. Whether it was eating healthier, drinking less, exercising more or saving money, my previous attempts to stick to some of these have been lacklustre.

As 2017 was being ushered in, I decided I shouldn’t do New Year’s resolutions and instead decided I would identify at least five things I loved about myself or what I had done the previous year and focus on putting in place a plan to roll those things over.

One of those things, which became more ‘in my face’ in 2017 becoming an independent contractor, was my responsibility to ensure I was putting money away in my KiwiSaver. 

Non-PAYE folks must actively set up a (monthly) direct debit or dump in funds into their KiwiSavers before June (when the KiwiSaver calendar year ends) to ensure they get the member tax credits (that’s the free money from the government).

Back in Taupo, I wander up to get the boys a gelato (which I know for my youngest will be more on his face than in his mouth) I daydream about perhaps retiring here and maybe owning a charter fishing boat or spending my days smacking a golf ball around Wairakei Resort Club and walking the Great Lake Walkway/s. Either way, it’s a lovely place (and a lovely daydream to have) and that lake—wow! As my eldest says, great place to swim, Dad, no sharks!

Have you thought about what your retirement might look like? And have you consider how you’re going to fund it?

The idea that the government will look after me gives me shivers. And I’m pretty sure I’m not going to win Lotto (mainly because I don’t buy tickets). So, when I think how I have been with money in the past, for me at least, setting up that direct debit for my KiwiSaver was the best move I could have made for planning for retirement. Set and forget. And it’s growing quite nicely now (thanks in part to my not being able to dip into it).

I’m a wee way from retirement, so for me, I need to make the most I can between now and then. How about you?

I would suggest that your retirement, whether it’s decades away or years away, will be a time you’ll want to be comfortable. And if, like me, you don’t buy Lotto tickets, money sometimes burns a hole in your pocket and you like to ‘have a life’ and enjoy some nice things, then this New Year’s resolution or rollover plan could include ensuring that your KiwiSaver is set up right to keep you on track to maximise that retirement fund. Think of it as a future you.

Simon O’Neill is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.