Many wealthy New Zealanders who planned to retire within the year have been forced to rethink their plans because of losses in the stock market. In other news, New Zealand? Apparently nowhere’s safe from the recession.
National Business Review: Retirement will have to be put on the backburner for some older workers who lost money this year, says Retirement Commissioner Diana Crossan.
She says that many who planned to retire within the next year have lost 20-30% or more of their retirement funds in the sharemarket, leaving them with tough choices to make.
They will either have to keep working for a couple more years, sell some of their assets to raise cash or accept a reduced standard of living in retirement, which Ms Crossan says those accustomed to wealthy lifestyles will probably baulk at.
Fortunately, if they do decide to keep working, they won’t have to work full work weeks to make up what they’ve lost.
“You don’t have to be working a 90-hour-a-week job; you might only have to work a couple of days a week to supplement your income or boost your savings…
She says some people caught up in the financial crisis might have to work two or three more years, but those planning to retire in five years’ time should have recovered most of their losses by then.