I keep coming across families and couples where one partner is not working. That’s cool, life happens, we’re not obliged to be non stop working machines. They are not working due to disability, other responsibilties to family (like taking care of elderly relatives) or they’ve taken years out of their career to raise young children. For whatever reason your partner is out of the workforce you cannot afford to neglect their retirement accounts.
At the very least you need to work out how you can contribute the $20.06 a week to Kiwisaver to at least get the full $521.43 member tax credit for the non-working partner. This is a guaranteed 50% return on investment and it would be foolish to ignore the chance to collect this.
Lets be honest, in New Zealand its most often woman who undertake the full-time care of children. But regardless of who takes on the responsibility those years not contributing to kiwisaver can really cripple your retirement savings. Looking after a family is unpaid work. Long hours, no financial compensation and sometimes the clients like to vomit all over you.
In New Zealand women live longer than men and need more funds to service their retirement yet so many families are neglecting retirement savings for non working women (not to mention when they are working they are often earning less so even more of a reason to make sure those retirement accounts are contributed to!!)
Living off one income is hard but there are lots of ways to find an extra $20 in the budget. You owe it to person giving up their income to care for the family, you owe it to yourself and you owe it to your children. Assuming you are still together when you retire there will be more in the pot for the both of you, more money will mean a less stressful retirement. You also taking care of your children by saving properly for your retirement, you wont be a burden to them, you wont cripple them financially by having to ask them to pay for any of your expenses in your old age.