It is a financial nightmare that we all hope will not be fulfilled: in retirement, you run out of money and it is almost impossible to rebuild. Surviving without wealth can increase unwelcome levels of stress at a time when one is financially vulnerable. Here are seven good strategies to ensure your wealth lasts a lifetime or longer from our great advisor friends from retirementguide.co.nz. 

One of the biggest mistakes people make is that they realise too late that lack of money is a real possibility. The first step is to understand, think about, and plan for this threat, and the easier it is to plan for it, the more likely it is to be avoided if you have time on your side. 

By mixing income, past earnings, and interest, you can increase your wealth enormously while making little regular long-term gains. It might be a habit to add extra contributions each year, but take a look at the calculator on your super fund’s website to see how much extra contributions you will get in retirement. How much do you have to pay in interest, tax and other expenses for retirement in your pension account? 

This is a key element of the planning process and your superannuation banking website has a pension calculator where you can enter your required income and how much you need for your pensions and income needs. 

My experience is that we underestimate the need for retirement provision and the costs that it entails. A rule of thumb among experts is to allocate a travel budget of no more than 10% of the annual income to travel expenses. Remember that most pensioners “travel budgets are being cut, as this is the health budget for the last years of retirement. First of all, let us take the matter of social security, as it is becoming increasingly difficult to qualify for an old age pension. 

Most of us invest either directly or through managed funds, but only if we work for 6-12 months and not weeks and only a few years. 

These bits can be invested in a variety of ways, such as a 401 (k) plan, an investment fund, or even a private equity fund. 

It is absolutely essential to compare them with comparable alternatives and to charge, but not to change the chops. Also check your state superannuation, depending on your age and date of retirement. The more conservative you are with your pension plan, the more risk you can take if you have time to recover from setbacks. There is a good chance that your average return will rise over time as a result of combinations – ups – or your pension payments will be hit hard. 

There has always been a lot of focus on accumulating money for retirement, but surviving that can be just as crucial. 

Early retirement and retirement require careful planning and professional advice. Everyone is different, but it is crucial that your tailored plan reflects your personal financial needs, financial goals and goals for the rest of your life. These are important decisions, and failure to make the right decisions can have huge fiscal consequences. 

Even so, something will inevitably happen, and unexpected financial events can have a devastating effect on your wealth – the building plan. The fact that these events are surprises makes it difficult to plan them, but they involve risks and challenges of their own. 

So creating a buffer against the unexpected is always a wise decision, and, in addition to adequate insurance coverage, many experts suggest setting aside six months “wages to cushion against unexpected financial shocks. 

Put away an amount every year so that it always yields a return, even if it is not used up, for at least five years. 

With wage growth subdued, living within one’s means has never been so important, and if one keeps an eye on one’s spending and works toward future financial security, one will leave more to one’s own devices. Remember that there is a surplus of income and expenditure that can be used for investment and wealth creation. When you are under a heavy burden during this time and start a family, downsizing assets such as a house, car, or spending can make a huge difference. 

If we get it right, access to pension top-ups may be the biggest windfall most New Zealanders will ever see, but it will come sooner rather than later. Many often start helping adults and children buy houses, cars or businesses and make the mistake of thinking that the payout is more than they will ever need. This can be a mistake, because you can never be sure that it is enough. However, the payout can be huge, if done properly it can cause serious problems for those who do not, especially those in the middle of retirement. 

This may be a nice thing at the time, but unexpected financial shocks can come from anywhere, so beware of gifts for all. Make sure you get the money back if necessary and don’t overspend, especially in the early years of retirement.  1