I used an online calculator to work out how much I would need to save. At current interest rates, to replace the sickness benefit of $nz190 a week, I would need nz200-300 thousand. That seems so much I got depressed wondering how on earth I could possibly reach that amount.

Then I realised, at the moment I earn $139 a week in the hand, so to get up to $190, I only have to have nz51 a week interest coming in. Much more manageable - smiles again.

The traditional route calls for investing in somewhere like the stock market and letting your gains compound. This does not work for me becuase of the abatement regime. I need to have use of the interest to avoid being squeezed.

So what I am going to do is start paying my savings into an interest bearing investment. As the amount of interest paid to me rises, so the amount I am recieving from the govt will go down. And I can carry on paying a percentage from my jobs into Kiwisaver for retirement. Sorted!