It’s striking that how to decumulate – how to organise savings for income in retirement – is a hot topic right now in many countries. Why aren’t solutions ready?
Every developed country is facing up to how people should manage their money in retirement. New Zealand is no exception, but is unusual in having no annuity market. If annuities came to New Zealand, would the problem be solved?
I don’t know the answer to that question, and you may not want to. But it helps to have some idea – for retirement planning, to understand longevity risk, or maybe you are just curious. It’s not too difficult to get an average figure. The problem comes in making that figure realistic for you. Continue reading