The cost of being: A retiree who donates half their pension to charity

A retired professional in a small town has revealed how he manages his finances, including donating half of his pension to charity. The man, aged 66, identifies as Pākehā and describes himself as a volunteer in his local community. His annual pension includes a private pension of $210,000 and New Zealand Super of $30,000. He holds assets valued at more than $5 million, primarily in houses and investments. Living in a small town, the retiree pays nothing toward rent or mortgages because all his properties are fully paid off. He reports having no student loans or other debts, allowing him financial freedom. His weekly expenses include groceries costing $400, with a preference for organic products. Eating out is limited to $50 per week, while takeaways and workday lunches are not part of his routine. He spends $20 on coffee and snacks and an additional $50 on pet food each week. The retiree has maintained a strict savings habit throughout his life, setting aside 10% of every paycheck for savings, which he invested in the stock market. Over 50 years, this practice has resulted in over $1 million saved, split between cash and managed funds. He maintains three separate accounts, one for donations to the church, another for charitable giving, and a third for personal use. Even after retirement, he continues to allocate 10% of his pension to these accounts, highlighting his commitment to disciplined financial management. His lifestyle reflects a balance between frugality and generosity. He avoids alcohol entirely, having quit at age 25. Transportation costs are minimal, with an electric vehicle and regular cycling contributing to a weekly expense of $50. Clothing expenditures are modest, with an annual budget of $750, and his most expensive item was a waterproof jacket. Shoes cost $200, and grooming expenses total approximately $200 annually due to regular barber visits. Exercise is a significant part of his routine, with an annual expenditure of $2,000, largely due to the upkeep of his high-cost bicycle. His entertainment choices are varied, with a recent weekend activity costing $96, watching documentaries during the Mountain Film Festival. He admits to one regrettable purchase: a used recreational vehicle, which required substantial maintenance costs. However, he finds satisfaction in a recent indulgence: Shokz bone conduction headphones, which he uses for both commuting and household tasks. The retiree's approach to money is rooted in early lessons from his father, who emphasized the value of money despite growing up in relative poverty. Savings bonds were given as birthday gifts, and he learned to save 10% of his earnings from a young age. This habit continued into adulthood, with the guidance to avoid debt and prioritize paying off a mortgage quickly. He believes in buying used items when possible and maintaining a cash-only lifestyle, ensuring his Eftpos card has never been declined. Looking ahead, the retiree expects to remain financially secure. He has purchased a private annuity pension to ensure a stable income post-retirement. His financial philosophy combines prudence with generosity, reflecting a lifelong commitment to responsible money management and community support.