Why an early death is preferable to the lingering agony of a bleak, penniless retirement!

Years ago, living comfortably in retirement was something most New Zealanders looked forward to. Today, however, that aspiration is confined to the 'chosen few' - the less than one percent of the population who will retire wealthy.

For the rest of us, death at age 65 seems more and more the preferred option!

After all, we probably won't be able to afford to stay alive anyway!

Lets look at the reasons why:……

1) Superannuation in this country is a legitimate form of quadruple taxation - you deposit your taxed paid dollars into your preferred super scheme (in reality, nothing more than a limited liability company trading as an "XYZ Retirement Fund"). Company tax is deducted each year - out of the investment pool. You are then taxed on your profits when you withdraw them to fund your retirement. Oh, and you also have to pay tax on the interest you earn when you park your retirement savings into a bank account for easier access!

2) There is no tax relief or savings incentive applicable to New Zealand superannuation schemes.

3) Wages have fallen way behind the cost of living, meaning that not only is it damn expensive to live anyway, but almost impossible to save!

4) Mutual funds in New Zealand are a win-win for the fund managers - they get paid regardless of whether they make or lose money for us! That seriously sucks! NB: In Europe for example, you'll find that most fund managers only get paid on "net new profits", meaning that they don't earn a cent until such times as the fund/s they're trading reach new highs.

5) The insurance salesmen and others who market these superannuation plans 'get to keep' the first 24 month's worth of your hard-earned monthly payments. That's how they get paid! And THAT'S the real reason why it usually takes at least ten years for your investment fund to break even, let alone show a profit!

6) Typically, the promoters of superannuation and other similar retirement products in this country will have us believe that the yearly returns are around 10% pa. Nothing could be further from the truth!!! You're lucky if you break even in many cases! I used to sell superannuation plans myself back in the mid 1990's, and I know the bullshit that gets spun about them when it comes to their performance.

7) Even if retirement funds really did return up to 10% pa, the negative impact of the plethora of fees and charges against such fund quickly consigns them to the "useless investments" file.

And as if the above 7 reasons weren't enough to have you quietly reaching for the carefully secreted euthanasia kit under the bed, the head of the NZ Reserve Bank is now spouting off how he intends to destroy the property market in this country! Apparently, according to Mr Bollard, property investors have 'had it too good for too long' and house prices have risen to high for the average first-home buying Kiwi to afford.

While I agree with Bollard on the "too high-priced for new home buyers to afford" tag he has labelled on housing in New Zealand, I sure as hell don't buy into his spin about the need for 'drastic measures' to curtail the continued rise in property values!

For many of us, owning two or three investment properties as well as our family home, is a far, far better option for long-term retirement planning that the draconian super schemes we get dished up to us!

Unlike the triple taxation aspect of superannuation, property investment attracts very little tax in the greater scheme of things - especially if you have a good accountant.

And that's the way it should be!

I'm telling you now, if they (treasury) screw around with our mortgage rates and borrowing abilities much more - and then make changes to taxation on investment property ownership, there'll be absolutely nothing left for us! We simply won't have any way of saving for a decent retirement… and "yes, maybe the concept of dying before 65 aint so stupid after all!"

What do you think? How are you going to cope with funding your retirement? Post a comment below.