Property Investment and Retirement Needs

The biggest worry at retirement is whether the same lifestyle that one has maintained for decades will be sustainable. This largely depends on how financially independent the individual is, and how well he has planned his retirement phase.

It becomes important to draw a list of retirement needs years in advance and gradually work towards ensuring their fulfillment.

Some of the significant retirement needs include the following:

  • A place of residence, owned and not rented.
  • A sufficient pool of investments that yield a decent monthly income that helps to meet expenses
  • A vehicle for moving about
  • Medical insurance and some capital put away to meet medical exigencies
  • Some annual income for travel and vacations
  • A feeling of being financially independent and secure.

As people grow older their needs reduce, but comfort and continuing to live in the same manner as they have been accustomed to, becomes their biggest need. The state takes care of senior citizens as well, and social security benefits are provided, but limiting dependence on the government, is always preferable.

Ways to meet retirement needs

  • Start saving early– The popular belief when a working career begins, is that retirement is decades away, so why start saving now. Time flies and expenses multiply over the years, hence starting to save early is important to ensure that some money is left over for retirement comforts as well. Splurging unnecessarily makes holes in capital and wealth, which will never get filled. So it is best to start forced savings from the day earnings start coming in.
  • Pay off all debts– Once savings have started accumulating, the first expense besides living needs, should be to pay off debts taken in the past for education etc. Debts are a burden and the interest on them can be a burden.
  • Invest in a diverse set of assets to spread the risk– Once all debts have been paid, it is time to put the saved capital to lucrative use, so that it generates income and creates wealth. This is possible by investing small amounts of money in different assets like stocks, bonds, forex, gold and property. Since each of these comes with its own set of risks, spreading capital in small amounts in each of these, helps to spread the risk, and minimize losses, if any. Caution and knowledge to make informed decisions are important so as to not be affected by market volatility.
  • Buy property– Property purchase is one of the essential investments that needs to be made. This helps to cut rental expenses, which is money down the drain, and as an asset, property is one of the safer investments, not exposed to market volatility, and one which grows in value and helps build wealth over time.
  • Set aside funds for education and other family expenses– Education of children at higher levels is a big expense, and if a fund is kept aside to meet these expenses, it will ensure that the retirement pool is not eaten into.
  • Create and build wealth– No matter how small the saving amount, the idea is to maximize returns through wise investments, so that in a span of thirty years, it has multiplied and ensured sufficient wealth creation.

Retirement needs can thus easily be met and this security makes the “golden years” more comfortable and stress free.


For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here


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