Three key elements to a happy retirement

Those most confident about their retirement point to three key ingredients. Photo/Getty Images.

There are three key ingredients to being confident about having a good retirement, research has revealed.

A survey of New Zealanders aged between 60 and 74 years has found those who plan early, get help from others and have a wide range of investments feel most confident about their golden years.

The research, by investment watchdog the Financial Markets Authority, showed those who planned at least 10 years in advance were the most confident but even planning at least six years in advance boosted confidence.

FMA head of investor capability, Paul Gregory, said a lot of existing research showed how poorly prepared most older Kiwis felt about their retirement.

"We wanted to engage with people about the factors that would make them feel confident, and ask them why."

Gregory said that getting advice from a professional worked, but was not the only route to confidence.

"Talking to family and friends, opening some books or using the internet, or resources from a financial provider, were just as good."

But it did find people who went though an adviser had a wider range of investments, including shares, bonds and managed funds.

Gregory said the biggest difference came from starting early.

"The investors feeling most confident are more likely to have looked for information or advice more than 10 years out from retirement.

"They are also more likely to have a healthy retirement savings balance. But there is still a lot of confidence, and significant final retirement balances, among investors who started between six and 10 years out from retirement," he said.

Gregory said none of the research findings was particularly surprising but taking the steps made a difference to people feeling confident and ending up with better financial resources in retirement.

How to wise up for retirement
• Choose the most suitable investments for you and your goals
• Know your finances and budget, so you can have confidence the money will last
• Check in with your investments, including getting expert help, to get further guidance
• Understand the investment risk, so you worry less about investments going up and down and also how it affects the amount of money you will have to live on.