retirement.org.nz

The Retirement Commission takes a lifetime approach to educating and informing New Zealanders about managing personal finances.

Our work, through education, information and promotion, contributes to three key elements that are vital to New Zealand’s retirement income framework and to creating personal financial wellbeing for New Zealanders so they are adequately provided for in retirement:

• New Zealanders are well educated in financial matters and can make informed financial decisions throughout their lives.
• The financial services sector is trustworthy.
• The government’s retirement income policies are effective and stable.

These three elements need to be in place so that all New Zealanders have the confidence and ability to make informed and lasting decisions about their finances throughout their lives.

New Zealanders’ standards of living in retirement will depend largely on what assets and income they have during their retirement years. Their income is likely to come from three major sources: government, private savings and investments, and workplace superannuation.

A fundamental assumption for any retirement planning or decision-making is that the Government will continue to supply a basic income to older people. For some years there has been broad political consensus supporting this approach. If individuals want to receive more than this basic retirement income, then they must take action themselves.

New Zealanders are faced with issues of funding education, home ownership, investing in businesses, debt management, and family financial obligations. They need to fit financial preparation for retirement into this framework.

Simply saving some money for retirement may not be possible, nor indeed the best financial choice for some individuals and families at certain stages of life.

The traditional message that ‘you must save for your retirement’ is now of less practical use to people living in an advanced modern economy and a changing society. Financial decisions involve increasingly complex and subtle considerations about the sources and uses of personal funds throughout life.

It is important that when people make their financial decisions – such as opting in or out of KiwiSaver – they are aware of all their options, and the issues and implications involved.

The Commission is funded to provide information that will help people make informed financial decisions throughout their lives. All our information is impartial and independent.