LIVING THE KIWI RETIREMENT DREAM?
A retired couple in New Zealand are living the dream. They have a mortgage free property and save at least $1000 from their pension (called Super in NZ). This money goes into their cheque account to be used for emergencies and bills such as visits to the dentist, car repairs, and rates. They had 40k in that account.
Now I don’t want to state the obvious or ask stupid questions. But…
Wouldn’t some of that money have been better invested elsewhere earning at least a good interest rate or in some form of managed funds where their savings could have increased in value?
This couple lived frugality and as a result found it easy to save. It appears that travel was not part of their retirement plans. I think most people would want to do stuff in their retirement years which included overseas travel so this couple’s system of living is not for everyone. The point being that it is up to everyone to select their own system of living which financial planning is a big part of. This couple’s lifestyle is not for everyone including yours truly but who is to say that its right or wrong. “Everyone’s to their own” as the saying goes.
This example does show that the habit of saving a portion of your money every pay day can make life easier for you later on in your life.
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