Related Research & Reports

  • Share:
  • Text Size:
  • A
  • A
  • A

Keeping your trolley loaded

Posted to Money Week Financial Capability on 05-09-2016

New research has revealed that many New Zealanders underestimate how much filling their shopping trolley in retirement will cost them. But they also don’t realise how well KiwiSaver could help them meet those bills.

The study was carried out for this year’s Money Week and is already motivating people to join KiwiSaver or add a little bit more to the amount they save each month.

People were asked to estimate how much they thought they would need for groceries over the 30 years they might spend in retirement. Only 11% guessed correctly at between $250k-$300k*.

They were also questioned about how much they would have in their KiwiSaver account if they saved at 3% from the age of 18**. The correct answer is between $300k-$400k. More than two thirds underestimated and nearly a third of those thought it would be less than $100k.

David Boyle, the Commission for Financial Capability’s group manager investor education, said: “If people realised how much they could end up with if they joined KiwiSaver and contributed regularly, then I think they would be much more likely to do so.”

When estimating how much they would have if they increased their KiwiSaver contribution rate from 3% to 8%, half expected it to be less than the correct answer of $600k-$700k.

Armed with that information, around half say they will now increase their KiwiSaver contributions; join KiwiSaver or look to join; start saving; or increase their savings. One per cent say they will stock up on groceries.

David added: “The great news is that we are living longer, many of us can now expect to spend 20-30 years in retirement. KiwiSaver makes it easier for us to save for our futures, the trick is to work out what we need to do to make sure our income lasts as long as we do once we stop working.

"It isn't easy to think about the daily costs in retirement, but Money Week focuses on helping people see things a little more clearly and, setting them up to start planning for it.

“We’re not suggesting anyone should stop enjoying themselves today, but work out a plan so you will be enjoying yourselves tomorrow as well. And the sooner you start putting a bit away, the greater the amount you will have to support you when you retire."

The theme for Money Week this year is ‘show me the money’ and looks at how the costs of everyday items can add up over 30 years of retirement.

Businesses, government, schools, community organisations and individuals are all getting involved in Money Week. The nationwide event features a range of activities, workshops and seminars to help build financial capability.

The Commission and Financial Markets Authority are running another survey during Money Week to help KiwiSaver members get the most out of their account - click here to take part.

The findings will be revealed on Thursday.

You can find more details about Money Week events here and you can use the tools, including a new goal planner, on Sorted to help get you on your way.

Keep an eye on #MoneyWeekNZ and our Facebook pages (Sorted and CFFC) for regular updates on Money Week. 

 * Based in today’s dollars on Massey University Fin-Ed Centre New Zealand Retirement Expenditure Guidelines 2015, two person household, metro food expenditure choices, with no alcohol. 

** Based on an average salary of $65,000 through a working life, contributions in a growth fund from age 18 to 65.



Next: Little Black Book a first in the fight against scams

Related News

scams book thumb

Little Black Book a first in the fight against scams


Wills stockshot thumb

Will they, won’t they – half of Kiwis have no will


Money Week logo thumb

Kiwis’ ‘she’ll be right’ attitude to insurance could backfire


Money Week Mangere Markets 2 thumb

Culture of saving needed to prevent harm of bad debt


Money Week web image thumb

Money Week 2018


Money Week 2018 Wngtn launch Kris Faafoi thumb

Minister helps launch 2018 Money Week


On the shoulders of others


“Be a smart alien and do the maths”


Be Royal campaign Money Week

CFFC and Media Design School collaborate on Be Royal campaign for Money Week


money week posters flat

What does debt do for you?


What would an alien think about borrowing and debt?


Two simple steps towards a better retirement


New Zealanders voice fears over financial security in retirement


Money Week logo

Creating a theme park on the moon


Maori Moneyweek 1 Shilling

Making sense of cents


Survey: KiwiSaver and you



Can you see your future?


winning selfie pic - Define Wealthy with a Selfie contest

'Wealth is having friends to share life with'


2015 Money Week - Windfall challenge at Britomart

What would you do with a $500 windfall?


quiz news story

Take the free Financial Fitness Check-up


Money Week 2015 launch event at Britomart with CFFC

Hip hop crew’s money moves launch Money Week 2015


money week 2015 twitter

Communities rally behind Money Week


Money Week 2015 Define Wealthy with a Selfie photo competition

What does a wealthy life look like?


Money Week NZ Fighting Fit logo

Money Week 2015: Bigger, better, bolder


Money Week 2015

Money management courses galore this Money Week


Money Week 2015

Counting down to Money Week 2015


money week - fighting fit logo

Getting Fighting Fit for Money Week 2015


New Zealanders encouraged to shape up their finances


news nzx video

Helping young people shape their future

Related Research & Reports