Young people more retirement focused

Retirement savings is on the radar of young people, with more than half of workers aged between 15 and 24 already saving for their retirement, the ANZ retirement savings barometer says.

The latest barometer surveyed 850 New Zealanders in April and May and found more young people were thinking about their savings.

Fifty-five percent of young people indicated they were already saving for their retirement, and 82% of those young people not already saving for their retirement indicated they planned to save in the future.

ANZ wealth management director John Body said it was great to see so many young people planning for their retirement.

''With KiwiSaver, the earlier you start saving, the better off you will be. We know retirement seems a long way off for young people, but clearly many young people have got the message they should start saving early,'' he said.

The survey found only 31% of young people were confident of saving enough money to provide the weekly income they required when they retired.

But young people had time on their side, he said. A 45-year history of regular contributions to a KiwiSaver fund, with the right mix of investments, meant they were likely to achieve their goals.

The past seven years had been about getting people to join a KiwiSaver scheme, Mr Body said.

''In the future, the priority has to be to get people to really focus on their KiwiSaver investment and ensure their savings plans are on track to deliver the retirement lifestyle they want.''

Other key findings from the survey included: 70% of those surveyed were saving for retirement. 17% of respondents expected to rely solely on national superannuation. 29% of women believed they would need more than $500 a week on top of national superannuation.

31% of women were confident of reaching their retirement savings goals, compared with 51% of men. Half of respondents said they would consider getting professional advice about KiwiSaver and their retirement savings plans. 55% nominated banks as their first choice for advice on KiwiSaver or retirement savings.

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