Fin Advice NZ backs retirement report

Financial Advice NZ broadly supports the findings of the Retirement Commission’s 2025 Review of Retirement Income Policies, and it welcomes National's policy of increasing KiwiSaver contribution rates.

Wednesday, November 26th 2025, 8:35AM

“This review is a timely reminder that the nature of retirement is changing,” chief executive Nick Hakes says. “With more New Zealanders living longer, facing declining home ownership, and managing rising health costs, we need a system that is fair, sustainable and one which all Kiwis can have confidence in; and quality financial advice is central to achieving that.”

As the professional body for financial advice, Financial Advice New Zealand is uniquely positioned to assist policymakers in shaping pragmatic long-term solutions. Financial advisers are closest to the client conversation and understand the real-world financial decisions Kiwis face every day. This insight ensures that policy design translates into meaningful retirement outcomes for New Zealanders.

The review highlights several critical trends:

Declining home ownership means more retirees will face ongoing housing costs, challenging the traditional assumption of mortgage-free retirement.
Changing expenditure patterns, as evidenced in Massey University Fin-Ed and Financial Advice New Zealand research, show that retirees increasingly need flexible strategies to manage income and spending over decades.
Rising healthcare costs add further complexity, making personalised financial planning essential.

“These realities underscore the importance of advice in the decumulation phase,” Hakes says. “How Kiwis draw down their savings is just as important as how they accumulate them. Without structured guidance, many New Zealanders worry about if they have enough funds to retire on, and for others there can be a risk of underspending out of fear or exhausting their savings too soon.”

How financial advice supports the review’s recommendations

One of the recommendations was to develop a nationally consistent decumulation framework. Hakes says advisers help retirees apply drawdown strategies, manage longevity risk, and integrate NZ Super with KiwiSaver and other assets.

Another recommendation was to design and trial sidecar/emergency savings accounts. "Advisers guide clients on balancing short-term liquidity with long-term goals, reducing hardship withdrawals," he says.

The Retirement Commission argued for a number of targeted KiwiSaver reforms. Advisers are an enabler here as they explain new entitlements, optimise contributions, and adjust plans for life events like parental leave or late-career work wit clients.

Similarly when it comes to cross-party accord and a 10-year roadmap, as recommended by the commission, advisers provide continuity and confidence during policy changes, translating how changes to legislation impact financial plans."Accessing financial advice is not a luxury, it’s a necessity,” Hakes says. “As KiwiSaver matures and balances grow, the role of advisers in guiding decumulation and managing complex needs will only become more critical.”

Financial Advice New Zealand endorses the Retirement Commission’s recommendation for a cross-party accord and a 10-year roadmap. “Retirement policy must rise above political cycles. Certainty and stability are essential for public trust and effective planning.”

Hakes also said Financial Advice NZ welcomes tNational’s KiwiSaver policy announcement to increase contribution rates as a being consistent with a longer-term strategy for future contribution rates and a first-step towards a comprehensive KiwiSaver plan.

“We encourage all parties to work together on a bipartisan vision that integrates KiwiSaver, NZ Super, and innovative advice solutions to cater for New Zealander’s diverse retirement needs.”

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