Her Magazine

Her Magazine April/May 2013

Her Magazine is New Zealand’s only women’s business lifestyle magazine! Her Magazine highlights the achievements of successful and rising New Zealand businesswomen. Her Magazine encourages a healthy work/life balance.

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:where would we be without men? would we be without Why women need to know more about retirement finances than men When my father was age 90, he was going to the local pub for Sunday lunch. When I asked who he was going with, he replied, "20 widows and me" (with a cheeky grin). I said, "What, no men?" And he said, "No, they have all gone." This is of course no surprise to anybody; we all know that women live longer than men. Let us assume that a husband age 68 retires. His wife is 65 so they now both get National super of $27,000 a year. They have a debt free home and have saved $300,000 for retirement thus they are looking relatively comfortable. Assuming a 4% after tax return and 3% inflation, how long will this money last? If they are sure they will only live 10 years, they can spend $31,000 a year.If they are sure they will only live another15 years, they can spend $23,000 a year. If they are prudent and assume they will live for 20 years, they can spend $19,000 a year. If one of them lives for 30 more years, they can only spend $15,500 a year. Now we all know who is likely to live longer – the woman – so it is clear that all women need to be well-informed about retirement and all its financial aspects. There are many, many issues that you need to be aware of (see box insert on this page). This can seem a pretty depressing subject, but it need not be. In fact, you can have a pretty good retirement in NZ if you plan ahead, and there are many things you can do out and about at low cost. 38 | www.hh e rmagaznn ec c o. n z www. e rmagaz i i e . . o. n z • Will the retirement age be raised from 65 to…? • Should you perhaps work a little longer or keep working part-time? • Why you need more investment returns than the bank will pay you • How you can get better investment returns without taking excessive risks? • Women seem to outlive men by 7 to 10 years • A woman living alone gets $18,000 a year govt. super • A woman living alone will have most of the expenses that a couple would have • Women seem to outlive men by 7 to 10 years • If you are going to outlive your man, you need to understand money today

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