How Much Do I Need?

This is a fundamental question that requires answering before one can satisfactorily devise a portfolio investment strategy. The answer depends upon

the size of the investment fund already established
estimating future contributions to the capital fund from other activities – saved earnings, inheritances, endowments, ..etc
estimates of calls on the investment fund – retirement income needs, bequeaths anticipated for children, ..etc
judgement of what government-provided pensions will provide
the anticipated rate of return from the investment fund

Commonly, it is the role of "retirement calculators" to provide estimates of investment funds required for your particular situation. These calculators are wide and varied and their usefulness severely constrained by the particulars of the specific tax and State pension regimes built into them. There's one available on www.sorted.org.nz, we also have one that is more flexible which you can play with until your heart’s content (ours has been commended by Consumer Magazine). We recommend you do this in order to get an idea of how well matched your means are to your aspirations.

You can find it at the calculator.

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