A survey by superannuation fund manager AMP today shows most people have realistic expectations about inheritances supporting their retirement.
Most people won't be using an inheritance to help support them mainly because only 14 per cent can expect to inherit $10,000 or more.
"People seem to have realistic expectations about inheritances, which
is a positive, but it does reinforce once again the need for a good long-term savings plan," AMP managing director Ross Kent said.
Nearly 60 per cent said they weren't expecting to receive any money or assets which they would use to help support them in retirement, aside from what they were saving themselves and the state pension.
Of the 38 per cent who were expecting additional funds, a third were expecting some kind of inheritance. However, only 1 per cent of those anticipating an inheritance were expecting to rely on it to a large extent.
"It is interesting that the number of people expecting an inheritance -- 14 per cent of the total -- matches exactly the number of individuals who reported receiving an inheritance of $10,000 or more in the Retirement Commission's survey this year on the Net Worth of New Zealanders.
Mr Kent said the small proportion who can expect to inherit a significant amount underlined the need for people to save if they want anything over and above the state pension when they retire.
"There are no magic bullets in this game -- regular saving over the long term is the only guaranteed way to accumulate extra money."
He said that people who panicked a year ago at the state of investment markets and quit or suspended their super schemes had missed out on the big rebounds in sharemarkets this year.
Mr Kent said it was worrying that investment in housing was crowding out other forms of saving.
"People really do need to think about having a diversified savings plan and that means having something other than housing assets."
- NZPA
