100-year-old problem for advisers
New research by the Financial Services Council has predicted that about half of all New Zealanders born last year will live until they're 100 years old (44% for males, 52% for females).
The research has prompted renewed calls for changes to New Zealand's superannuation system, with a warning by the FSC that taxes will have to increase significantly unless changes are made such as raising the age of eligibility.
And according to Institute of Financial Advisers president Nigel Tate, it won't just be the government that will have to change tack as a result of this demographic headwind; advisers will also have to change the way they do things.
"I suspect it will be [a big issue for advisers] going forward; however, the people born last year are currently one year old, so we've got a couple of decades up our sleeves.
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