Inflation hits super savings confidence
Kiwis' confidence in reaching their savings goals for retirement has dropped, according to the latest ANZ Retirement Savings Confidence Barometer.
ANZ surveyed 989 New Zealanders aged between 15 and 64 and asked them about the level of retirement income they would like to have in addition to New Zealand Superannuation when they retired.
For the first time the bank adjusted savings targets to take inflation into account.
This adjustment led to a drop in confidence, the bank said, with only 39 per cent confident of reaching their savings goals, down from about half who were confident in the December survey.
ANZ wealth managing director John Body said a 30-year-old planning for a retirement income of $200 a week on top of New Zealand Superannuation would probably need double today's money when they reached 65.
The results showed many people were not taking inflation into account, he said.
"A quarter of male respondents and 32 per cent of women said they would increase their KiwiSaver contribution now they could see the impact of inflation on their goals," Body said.
But 58 per cent said they would not change their plans despite accepting they needed to save more, the survey showed.
More than half of those surveyed said they would like up to $300 per week on top of New Zealand super for their preferred additional income.
Body said savers could increase their contribution rate or change their investment approach to compensate for inflation.
Confidence fell most for those aged 25 to 44 with 38 per cent confident they would reach their savings goals.
High earners, with an income of more than $100,000 per year, were less confident too, down from 66 per cent to 50 per cent.
Five per cent of those surveyed said they intended to live on New Zealand super alone.
Superannuitants who are single and living alone get a maximum of $357.42 net per week from New Zealand Superannuation.
A married person or someone in a civil union or de facto relationship can claim a maximum of $274.94 net per week.