Retirement saving needs a target
New Zealanders appear to be kicking the retirement can down the road, with three quarters of Kiwis having never considered a savings target and a third not saving for their twilight years at all.
That's according to ANZ's latest Retirement Savings Confidence Barometer, which found that out of the 852 people profiled, 71 per cent had never considered the savings target they need in order to achieve the level of weekly income they would like to receive in retirement.
Tellingly, among those who had never considered a target just 40 per cent were confident they would save enough for retirement while among those who had considered a target 65 per cent were confident of achieving their target retirement income.
"The results show a strong correlation between having a saving target and being confident of attaining the lifestyle you want in retirement," said John Body, managing director of ANZ New Zealand's wealth and private banking units.
Body noted attitudes around retirement savings had improved since the introduction of KiwiSaver, but the finding that 34 per cent of respondents were not in a savings scheme at all showed more work needed to be done.
The survey found that of those not saving, over half indicated they were putting it off until a later date, and 29 per cent said they expect to fund most of their retirement through other means, such as owning an investment property or receiving an inheritance.
The data also showed New Zealanders are less confident about reaching their savings targets as they got closer to retirement and their earning potential decreased, which Body said highlighted the need for Kiwis to start saving early.
"Making regular contributions throughout your career and ensuring you are in the right fund profile for your age will help you make the most of your savings and be more confident about having a comfortable lifestyle in retirement," he said.