This article was published in Metropol magazine on 26 October 2021.

Age 30, 40 and 50 may seem a long way off, and 65 incomprehensible, but come the day you do decide to opt for a life of retirement, early planning will prove invaluable.

That’s where Shiree Hembrow, a financial adviser at phwealth, can help make a big difference.

With more than 25 years’ experience in the financial planning industry, Shiree can assist clients with all aspects of wealth management and financial planning – from retirement planning to estate planning, budgeting to investing.

She helps all manner of clients, specialising in helping women, from a young age, to participate confidently in financial activities. Women in particular need to think longer term and plan for retirement, says Shiree.

“Statistically women live longer than men and earn less. This means women require more money saved for what is likely to be a longer retirement. Women over 50 need reassurance they will not run out of money or be a burden on their families,” she explains.

Statistics New Zealand data shows the gender pay gap was more than nine percent in the June 2021 quarter.

“This means women earn less but will require more money saved for what is likely to be a longer retirement.” She says the sooner anyone starts saving, the better off they will be. “For instance if you’re 60 and want to retire in five years’ time, you will have to save so much more than if you had started 20 years earlier.”

Recent research found that 86 percent of retired people aged over 65 rely strongly on New Zealand Superannuation for their income.

“It’s easier if you own your own home, but if you don’t then a lot of the superannuation will go on rent. If people want to maintain their standard of living they must have an additional source of income.”

A recent HorizonPoll in New Zealand showed Kiwis are putting more money into lifestyle assets ahead of investments. Shiree’s advice is to invest a higher proportion into growth funds, i.e. shares rather than fixed interest investments, as shares have a higher expected return over the long term.

She can help you determine the correct proportion of growth funds based on your financial goals, your risk profile and your investment time frame. “It’s a more volatile market, but long-term you will reap the rewards as your investment assets build to support your years in retirement.”