Financial Planning
Planning your finances for retirement – and the years that follow – is about creating stability, comfort, and confidence for your future self. Whether you’re nearing retirement or already there, thoughtful financial planning can help you make the most of what you’ve worked for and ensure peace of mind for you and your loved ones.
A good budget is the foundation of financial wellbeing. Take time to review your income, expenses, and lifestyle goals. Consider:
- How your spending will change once you retire
- What you’ll need for essentials like food, insurance, utilities, and healthcare
- How much you’d like to set aside for leisure, travel, and family
Free budgeting tools from organisations like Sorted.org.nz can help you map out a realistic plan that keeps your savings on track.
Managing loans and debts
Before or after retirement, it’s worth reviewing any existing loans or debts.
- Bank or personal loans: Check if early repayments could reduce interest costs.
- Car loans: Assess whether a more affordable vehicle or lease might better suit your post-retirement lifestyle.
- Mortgage or home equity loans: If you’re considering downsizing or freeing up equity, seek professional advice to understand tax and legal implications.
Once you retire, it can become much harder to be approved for new borrowing, as banks and lenders generally prefer applicants with regular employment income. This can make it difficult to get a new mortgage, car loan, or even increase your credit card limit later on.
If you anticipate needing access to funds, it may be wise to:
- Renew or extend existing credit facilities before you retire
- Upgrade your car or major appliances while you still have regular income
- Keep a low-limit credit card active for emergencies (and pay it off monthly to avoid interest)
Clearing or reducing high-interest debt before retirement can make a significant difference to your financial comfort — but keeping limited access to credit can provide flexibility for unexpected expenses.
Investing for the future
Even in retirement, smart investing can help your money last longer. You might: keep a portion of savings in term deposits or low-risk funds or explore diversified investments such as managed funds or index funds. Seek qualified advice before making major investment decisions. The key is balancing growth with stability so your investments support your lifestyle and legacy goals.
KiwiSaver and superannuation
For most New Zealanders, KiwiSaver plays a key role in retirement income. Once you turn 65, you can access your savings, but you don’t have to withdraw everything at once. Many choose to keep their funds invested, drawing down what they need over time.
Review your KiwiSaver fund’s risk level and performance regularly. A financial adviser can help you decide whether to stay in a growth fund or move to a more conservative one as your needs evolve.
You’ll also receive NZ Superannuation if you meet the residency and age requirements. Check Work and Income NZ for up-to-date rates and eligibility.
Reverse home loans
For some, their home is their biggest asset — but the value is tied up in the property itself. A reverse home loan (also called an equity release loan) lets homeowners aged 60 and over access some of the equity in their home without having to sell or move out.
You can receive the funds as a lump sum, regular payments, or a line of credit. The loan (plus interest) is repaid when the home is sold, usually after you move into care or pass away. You’ll still own your home, but the amount you owe increases over time as interest compounds.
The loan reduces the value of your estate and may affect your eligibility for certain benefits. Independent legal and financial advice is essential before signing. Providers such as Heartland Bank and SBS Bank offer reverse mortgage options in New Zealand — make sure to compare terms carefully.
Home improvements and renovations
If you’re planning to stay in your home long-term, consider renovating to improve safety, comfort, or accessibility. You might want to look into:
- Government or council grants for home insulation or accessibility upgrades
- Whether refinancing, a small home loan, or reverse mortgage might make sense for your situation
- The potential return on investment if you plan to sell later
Always ensure renovations fit within your broader budget and don’t compromise your long-term financial security.
Financial planning is more than numbers – it’s about making sure your future reflects your values, priorities, and dreams. Whether that means supporting family, leaving a legacy, or simply enjoying the everyday moments, the right plan gives you freedom and reassurance. For trusted financial guidance, speak with a licensed financial adviser or explore tools and resources from Sorted.org.nz, KiwiSaver providers, and Work and Income NZ.
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