Retirement: Not Sexy
There’s an episode of Friends where Phoebe is working in a massage parlour (real massages) but she’s not happy there because it’s “one of those chain places”. Still, she stays despite her misgivings because they help her with what she calls a “four-oh-wunk”. Cue the canned laughter, because she’s referring to a 401K which is a retirement fund in the US.
That reference would have been completely lost on me the first time I saw the episode (yes, I watch the odd rerun) but I understand now, because a year ago I started reading lots of books about how to manage my money better.
We don’t have four-oh-wunks here in NZ, but we have a new thing called Kiwisaver which is similar. Deposit some funds, and the government/your employer will help out too. Sounds good. I’ve signed up with a medium risk fund at 8% of my net income.
It’s hard, though, for two reasons. One, I have a terrible attitude about ageing. I want to be better and wiser etc, but why does that have to be accompanied by hundreds of cats/walking frames/the pervasive scent of lavender/ lawn bowls? So it’s hard to acknowledge that I’m heading in that direction and need to prepare financially for a time when people start buying me lavender soap for my birthday.
Also, it’s money that could be spent on far more exciting things: travel to exotic locations, books, clothes, gadgets… best not to dwell on it really, and just do it. I’ll thank myself later.
Do you have a four-oh-wunk?
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Wednesday, February 6th, 2008 at 1:26 pm
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Wow, I’m really surprised to see that this is only a recent introduction to NZ, and that it’s voluntary. Australia has had compulsory superannuation for fifteen years now, so most people here in a regular salaried job will have some sort of retirement fund when they can finally quit working.
I lived in the Netherlands for about five years, and they had a similar scheme there, too, although it might well have been tied more closely to pensions.
What’s NZ’s pension bill like?
February 7th, 2008 at 2:24 pmRetirement will definitely be not-so-sexy, and that has nuthin to do with finance. More to do with anatomy.
February 8th, 2008 at 3:06 pmPaul, we used to have NZ Super where some of our tax went but it was not calculated on an individual basis. I definitely like this new version better - you can decide how much to contribute, and receive statements to see how much you’re saving.
Ling, maybe you’re right although Joan Collins and Jane Fonda aren’t doing too badly for 70-somethings!
February 9th, 2008 at 9:16 amMinx, it’s all in your mind. You can always do something about your looks if you are not happy, but your attitude toward life will not change just because you reach retirement. Think of it as more time to travel and enjoy life. Less energy, but more time. Plus, if you are with the right person who you can share your life with, it makes growing old worthwhile.
February 27th, 2008 at 6:31 am