Financial Background2020-04-06T12:17:06+00:00

Financial Background

Diamond Property Group is passionate about helping Kiwis become financially independent and retire comfortably.

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We believe that financial planning and wealth creation shouldn’t be for the privileged few, but for everyone.

New Zealand is experiencing a significant change in the structure of its population, with the number of people aged 65 and over  doubling since 1980. This figure is likely to double again by 2036. The largest growth will occur in the coming years, as baby movers move into the 65-plus age group.

Note: The percentiles and shading in graphs indicate the chance that actual results will fall within this range.

By 2036, we expect that 21- 24% of New Zealanders will be aged 65 or over, compared with 14 percent in 2012 (Figure 2). By 2061, we expect that 22-30% of the population will be aged 65 or over.

The table below shows New Zealand Superannuation (NZS) rates as at 1 April 2016

This means that a couple will only receive $591.94 per week. If NZS is their only source of income then $591.94 is all they can have to pay for the following costs: accommodation related, vehicle-related, insurance, groceries, utilities, entertainment, lifestyle. Someone living alone will only receive $384.76 per week. Currently, around 75% of retirees enjoy mortgage-free homes however with increasing house prices, more and more people will be paying the mortgage in their retirement.

Financial background

The great majority of older New Zealanders are very dependent on NZS for their income.

  • 40% have virtually no other income source
  • another 20% rely on NZS and other government transfers for 80% of their income

It’s predicted that 60% of us will retire on less than $25,000 per annum. This concerns us, especially when the average income in Auckland is $75,000 per annum. With the average life expectancy for men at 82 years and for women 87 years, it means we need to plan for approximately 20 years of retirement.

We recommend our clients plan their retirement with an annual income of around 80% of their working income, subject to their mortgage being paid off before retirement.

So how are you planning to be financially independent when you retire?

If you decide to do nothing, you will have to face the following options:

  • Continue to work in your retirement to supplement your income
  • Face a dramatic change in lifestyle
  • Downsize and move into a smaller/cheaper property
  • Take on a reverse mortgage

There are risks and disadvantages associated with each of these options. While it is good to keep these options in mind, we want to give you the opportunity of retiring financially independent, to enjoy your golden years with comfort and dignity.

Give yourself a chance or prosperity through the property, and book your consultation with Diamond Property Group now.


Maria Temnyuk

Maria Temnyuk