Being conservative in retirement
By developing a retirement income plan you can optimise your income in retirement.
If you are too conservative in your spending at the start of retirement, you are highly likely to discover in 10-15 years into retirement that you are ahead of target and able to increase spending. Just at the time that you are physically and perhaps psychologically least likely to want to do so.
The ability to adjust spending dynamically gives greater scope to spend more in your early years of retirement. However, taking more risk with spending requires a calculated basis to assess the chance that your funds may run out. A process for monitoring and adjusting spending is paramount to a finically secure retirement.
To determine the level of retirement income that you could achieve we calculate the probability of your funds running out at a projected life expectancy age. Taking this into account, we measure historical market movements which we test this through a number of Monte Carlo Calculations.
Your New Zealand Superannuation is broadly inflation indexed.
By not inflating the drawings from your investments you are able to spend more in the earlier years. This is when you have the time for travel, hobbies, and newfound opportunities to spend money on.
In the middle to late retirement years, spending may slow. Houses sometimes get downsized, travel may lessen, and the trappings of consumerism lose some of their appeal as some retirees spend less time accumulating possessions and may instead feel a calling towards simplification. As your spending needs drop inflation will effectively decrease the purchasing power of the drawings from your investments.
This is in-line with US studies which show that the income needs of retirees drops by around 1-3%pa during their retirement years. The inflation target set by the New Zealand Reserve Bank is also 1-3%. This is our rationale for not inflation adjusting your portfolio drawings.
Having a solid retirement plan is a core part of feeling financially secure.
Our Refinancing Process
How it works
01
Speak with Lancewood
Chat with one of our mortgage advisers about your goals.
Speak with Lancewood Investment
02
We arrange your lending
We'll compare options from our panel of lneders and handle the process for you.
03
Your club receives $500
Once your mortgage settles, we'll donate $500 to your club.
Our Refinancing Process
We’ll look at your current structure, balance, and rate to identify improvement opportunities.
01. Review Your Current Loan
We analyse your options across major banks and specialist lenders to find better value, flexibility, or features.
02. Compare Lenders
We’ll recommend a structure that matches your goals, whether it’s paying off faster or improving cash flow.
03. Structure for Success
We handle the transition, paperwork, and communication with lenders to make the switch seamless.
04. Manage the Switch
We’ll keep in touch to review your loan regularly and ensure you continue to get the best outcome.
05. Ongoing Support
All your lending options in one place
We compare major banks and specialist lenders for you, making the process simple
Benefits of Independent Advice with Lancewood Mortgages
Independent mortgage advice tailored to your goals. Lancewood helps you navigate your lending options with a focus on flexibility, structure, and long term outcomes.
Access to multiple banks and specialist lenders
Potential to save on interest and repayments
Simple, guided process from review to settlement
Independent advice that puts your interests first
Local support with national coverage
Example Outcomes
Refinancing can create meaningful improvements to your financial position. Depending on your goals, the outcomes might include reducing repayment costs, freeing up equity, simplifying your lending, or adjusting your structure to better suit your current circumstances.
Reduced repayment costs through better rates
Released equity for renovations or investments
Consolidated multiple debts into one manageable loan
Adjusted loan structure to match changing income
Business owners
It is normal for business owners to overvalue their businesses. Formulas and assumptions vary and ultimately a business is only worth what a buyer is prepared to pay for it. This in one of the reasons that so many business are liquidated rather than sold in New Zealand.
Business owners often need to diversify and save for their retirement in other areas outside their business. This is especially true in New Zealand, where many business owners own property as their primary income. As such business owners should largely hold investments that compliment New Zealand property and sufficiently diversify their investments.
The average Kiwi will spend 40,000 hours working towards accumulating their retirement needs. The least they could do is spend an hour discussing how to protect these needs.
