Fin Advice NZ backs retirement report

“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.”