New Zealanders continue dangerous liason with property
Residential property remains the key plank in the retirement plans of most New Zealand-ers according to a new survey commissioned by Armstrong Jones.
Residential property remains the key plank in the retirement plans of most New Zealand-ers according to a new survey commissioned by Armstrong Jones.
The survey found that more than 50 per cent of respondents rated their own home or rental property as an essential ingredient in their retirement savings plan.
Head of Armstrong Jones, Paul Fyfe, says the survey illustrates the skewed nature of New Zealanders investment priorities. He says there are not enough people pursuing a balanced portfolio approach to retirement savings.
“New Zealanders are still in love with property - particularly residential property - at the expense of a balanced, less risky higher growth strategy,” Fyfe says.
He says many may discover it is not so easy to cash up their property investments on re-tirement.
The survey also found reliance on the family home as part of a retirement plan increases with age and that those with property investments are significantly less inclined to engage in regular, planned retirement savings.
Other findings indicate 40 per cent of full time workers are not saving for retirement at all with only 29 per cent engaged in regular saving activity. The keenest savers are in the 40 to 50 year old group with 36 per cent saving regularly for retirement.
Surprisingly, the survey also revealed that people on higher incomes are generally less inclined to save on a regular, planned basis for retirement.
Fyfe says the results illustrate the ad hoc approach many New Zealanders are taking to-ward their retirement planning and the need for more education in this area.
“We’ve moved on from the quarter-acre paradise but our retirement attitudes are still back there. We think that if we own a house we’ll somehow be alright, and we always think we can save enough just before we retire,” Fyfe says.
“Those days are over.”
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