Financial Advice New Zealand Extends Partnership With Massey University’s Fin-Ed Centre

18 September 2024

Financial Advice New Zealand is pleased to announce our partnership with Massey University’s Financial Education and Research Centre (Fin-Ed Centre) has been extended for three years to continue the New Zealand Retirement Expenditure Guidelines research. This collaboration underscores our commitment to providing valuable data-led insights which help financial advisers, and their clients plan for a secure and comfortable retirement.

The NZ Retirement Expenditure Guidelines, developed by the Fin-Ed Centre’s internationally recognised academic research team, offer comprehensive data and analysis on the costs associated with retirement living in New Zealand. These guidelines provide an important tool to ensure individuals, financial advisers, and policymakers make informed decisions about retirement savings and expenditures.

“Planning for retirement is a maze of both emotional and financial decisions. We know through research that Kiwis who have a financial adviser by their side, feel more confident about their retirement future and are financially better off,” said Nick Hakes, Chief Executive Officer, Financial Advice New Zealand. “The NZ Retirement Expenditure Guidelines research is instrumental in guiding the decision-making of advisers and their clients, and that their financial plans align with the realities of retirement living in New Zealand.”

Hakes said “It’s estimated that by 2030, 20% of our population will be over 65 years. Combined with the current cost-of-living pressures and rising KiwiSaver balances, today is the best time to start planning for the future”.

“Careful planning for your retirement living has never been so crucial as it is today. With a declining rate of home ownership in retirement and some retirees still expected to go into retirement with debt, it is vital that well-considered and professionally advised financial plans are put in place sooner than later,” said Dr Pushpa Wood, Director, NZ Centre for Financial Education and Research, Massey University. She added, “it is not about scaring people, rather it is about stating what is ahead and how we can all prepare for our retirement with careful planning.”

The Fin-Ed Centre first undertook this research in 2012 and is now up to its 13th release. The report uses data from Stats New Zealand and purchases data on a triennial basis, with annual inflation adjustments in the interim. The data analysis, insights gained from the data, and if required, further interrogation of the data is carried out by Massey University researchers who specialise in this area. The report is peer-reviewed by internal and external academics to ensure its robustness.

The 2024 New Zealand Retirement Expenditure Guidelines are scheduled for release in November this year.

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