Financial milestones for those ages 56+
As people enter their mid-fifties and beyond, they often focus on securing their financial future and enjoying their retirement. Below are some key financial milestones for those aged 56 and older, offering practical steps to help achieve financial stability and peace of mind.
Be in the right KiwiSaver Fund: Review your KiwiSaver and complete a risk profile to ensure you are in the right fund for your stage of life and circumstances. This means checking the closer you get to 65, you are looking at capital preservation rather than growth.
Established rainy day fund: This fund should now have at least 3 months of living expenses. Only use for emergencies and if you need to use some funds, start saving the balance back up again with slow and steady amounts each pay.
Review insurance cover: Talk to a financial adviser to regularly review and update your insurance policies to ensure they are fit for purpose. Make sure you’re not overinsured.
Review your financial goals: Keep checking and achieving your goals. They may have changed as you head towards retirement. Regularly reassess your financial plan to ensure it aligns with your current situation.
Marriage or living together: Ensure you and your partner are still on the same financial page. Set joint goals, keep up the regular money dates, and be willing to compromise on spending strategies. Be open and honest.
Estate planning: Make sure you have your Will sorted and Enduring Powers of Attorney.
Look at downsizing: If you already own a home, consider downsizing. Keep living within your financial means to avoid overextending yourself.
Enjoy grandchildren: Spend quality time with grandchildren and support them as needed. Consider setting up savings accounts or investment funds for their future.
Diversify investments: Keep reviewing your investment portfolio and seek financial advice to manage risk and optimise returns.
Prepare for retirement: Now is the time to accurately calculate whether you are going to have enough to live the lifestyle you desire. Consider speaking with a financial adviser to create a comprehensive retirement plan and how to live off the money you have saved.
Travel: Plan for travel during retirement. Consider extended trips or exploring new destinations. Budget for travel and use retirement savings to fund these experiences. Ensure you have comprehensive travel insurance for peace of mind.
Enjoy grandchildren: Spend quality time with grandchildren and support them as needed. Consider setting up savings accounts or investment funds for their future.
Diversify investments: Keep reviewing your investment portfolio and ensure it includes a mix of stocks, bonds, and other assets. Consult a financial adviser for personalised advice to manage risk and optimise returns.
Travel! Consider extended trips or exploring new destinations. If you’ve planned for your future, start using these funds and enjoy the experiences! Ensure you have comprehensive travel insurance for peace of mind.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
