FANZ: Rising costs and changing retirement patterns make advice essential
Financial Advice New Zealand (FANZ) has welcomed the Retirement Commission’s 2025 Review of Retirement Income Policies, saying it strengthens the case for a long-term, bipartisan strategy to improve retirement outcomes.
“This review is a timely reminder that the nature of retirement is changing,” said FANZ chief executive Nick Hakes (pictured). “With more New Zealanders living longer, facing declining homeownership, 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.”
Changing retirement realities intensify planning needs
The review highlights pressures such as falling homeownership, rising essential costs, and more complex spending needs across longer retirements. FANZ says these trends make personalised advice increasingly important.
New Massey University guidelines show first-home buyers are now around 35 and heavily relying on KiwiSaver for deposits. KiwiSaver balances climbed 10% to $123bn, underscoring its dual role in housing and retirement.
Massey’s modelling also finds early KiwiSaver contributors can still retire comfortably after a typical $75,000 withdrawal, while late starters face larger gaps.
Hakes said the review “arrives at a pivotal time”, with New Zealanders aged 65 and over set to reach one million by 2028.
How advisers strengthen retirement outcomes
As the professional body for financial advice, FANZ says advisers play a critical role in translating policy into real-world decisions.
Financial Advice NZ’s Value of Advice research found advisers improve retirement outcomes by helping clients:
- optimise KiwiSaver contributions
- manage drawdowns and longevity risk
- build resilience to financial shocks
“These realities underscore the importance of advice in the decumulation phase,” Hakes said. “How Kiwis draw down their savings is just as important as how they accumulate them.”
Support for cross-party accord and KiwiSaver reform
FANZ supports the review’s recommendation for a cross-party accord.
“Retirement policy must rise above political cycles. Certainty and stability are essential for public trust and effective planning,” Hakes said.
It also welcomed National’s KiwiSaver policy announcement as a first step toward a longer-term strategy for contribution rates.
“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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