More than 40% of people who want to have retirement income on top of NZ Super want at least $500 extra a week, ANZ’s latest Retirement Savings Confidence Barometer shows.
For 20 years, that would require a lump sum at retirement of about $400,000.
At the moment, more than half of pensioners survive solely on Government assistance. Of those receiving some income on top of that, another half receive $100 a week or less.
But ANZ’s survey showed just 5% of respondents who are currently working intended to live on the pension alone. And the survey showed that 48% of people who were saving for retirement, planning to save or expected another source of income in retirement were confident of reaching their goals.
It showed that 51% of regular KiwiSaver contributors were confident they would reach their goals. The most confident were men and those with higher incomes.
Among those who had stopped contributing, that number fell to 29%. Just under half of those on a contributions holiday were confident.
An ANZ spokesman said it did not seem KiwiSavers were stopping contributions to focus on other investments. Most of those who stopped were people who cited KiwiSaver as their primary retirement savings vehicle.
ANZ wealth managing director John Body said the confidence gap was concerning. “It’s encouraging to see KiwiSaver appears to be making a difference to people’s confidence about achieving their preferred retirement income.”
Just under 65% of people surveyed were saving for retirement. Almost a third of those not saving expected income from other sources, such as selling a business.
Body said a gap in savings could make a big difference. “If you are in your 20s or 30s and take a five-year gap from paying into KiwiSaver, then the impact on your final lump sum at retirement can run into tens of thousands of dollars.”