There’s plenty going on in the political scene at the moment. There’s all the alcohol reforms (which I really don’t care about, given how much I drink and my age), tighter rules for the adventure tourism industry, and the talk about our abysmal savings rate and murmurings of compulsory superannuation.
While I personally think that the choice should remain ours, I believe you’re a fool if you’re not in Kiwisaver. I realise everybody’s situation is different, but I think most people can manage the minimum 2 per cent, especially if it’s taken out before you get your paycheck.
How can you not want to have the option to retire some day? I don’t doubt couples can survive on $24k NZ Super a year, but if you want to travel or basically enjoy anything but the basics, or don’t own your home outright, it’s going to be a pretty austere existence. And who’s to say Super will still be around for us in our old age? 40 years is a long time and many government terms away.
I know a couple of retirement age who still rent, run their own business and work crazy hours, getting up before dawn. And hey, if that’s what you want to do, that’s great. But they’ve worked hard all their lives, and I don’t think it is. Wouldn’t it be nice to not be bound by the need to continue earn a living?
I’m grateful that my own parents – as far as I know – are fairly secure. Because since I started taking an interest in personal finance, I’ve heard WAY too many horror stories of family bailouts, obligations and – worst of all – taking in ageing parents who have nowhere else to live.