21 Nov Mythbusting: “My job, the government, and my pension will take care of my retirement”
If you are looking for financial freedom and the choice of having enough income to finance the lifestyle of your choice without having to work, you will never achieve this through your job or through a government pension.
Do you know what the pension pays today for a single person? For a single person, it’s about $340 a week. Could you survive on that, even if you have paid off your mortgage? Rates alone in Auckland would diminish a portion of this. And for many people, even owning a house is now out of the question, and they are resigned to renting.
Even if you do pay off your mortgage by retirement age, how are you going to have that stress-free comfortable life living on the pension? And what if the government raises the pension age to 70, mirroring Australia, because of our ageing population?
With fewer working people and an increasing retiree segment that needs to be funded, many governments in the western world cannot afford to look after the ageing population so the once reliable government pension will keep getting pushed out and being reduced as the ageing population continually rises. We are increasingly living in a world where individuals must look after themselves – the user pays.