A study was undertaken in the first half of 2009 to provide an insight into the spending patterns of retired people in New Zealand.
Provision of consumer information about financial products (often called ‘disclosure’) is a cornerstone of consumer protection legislation. The aim of disclosure is to make specifications of products clear to the consumer so they can compare products and make informed decisions prior to purchase. Is it read? Understood? Too complex? Are there better ways of giving customers the information they need?
The Retirement Commission and Families Commission have completed further joint research on the indebtedness of New Zealand families.
This latest report has found that financial behaviour – notably not saving and living from pay-to-pay ‘most’ or ‘all’ of the time – can increase the likelihood of a family experiencing over-indebtedness by more than 20 percent, holding family and financial circumstances constant.
The Retirement Commission and Families Commission are currently carrying out joint research on the indebtedness of New Zealand individuals and families. We have recently completed a background report which identifies some of the key characteristics and trends around indebtedness. December 2008.
This is an update of the original report written in 2004. The study provides a summary of New Zealand's retirement income policies from the late 1800s through to 2008, and an examination of the main issues that have arisen in that time. It describes the main sources of retirement income including public pensions, occupational pensions and private provision.
Saving for retirement is an important decision for individuals and couples. The extent to which people are saving for retirement is a key element in formulating public policy toward saving and retirement incomes. The accumulation of retirement wealth is the key indicator of retirement saving behaviour by households. For this, information is needed on the assets and liabilities of households.1 This paper uses new data on assets and liabilities from the Survey of Family Income and Employment (SOFIE) in New Zealand to examine the accumulation of wealth.
This paper aims to bring together the range of considerations which influence how we as citizens provide for our future, during the years of life generally considered as retirement. The paper shows how the notion of retirement itself is changing, and that this has reduced the relevance of analysis based on demographic measures alone. Since the last review of retirement provision in 2003, thinking on retirement, savings, and employment has become more informed by new sources and emerging trends, as well as some extensive studies done elsewhere. October 2006.
The savings behaviour of New Zealanders is a topic of considerable current interest. As we live in an increasingly interdependent economic world, we have to think of our savings as part of a global scene. The big feature of international savings at present is that Asian societies tend to save more than they invest and most other economies, especially the US, invest more than they save. New Zealand follows this pattern. September 2006.
Home ownership rates among older people in New Zealand are high, but their incomes are, on average, lower than for younger age groups, so that many fit the description "asset rich, income poor". Housing wealth can be used in various ways. Trading down may release some equity, but if people wish to stay where they are, there are a variety of commercial equity release (ER) options.
While much attention has been directed towards the accumulation of assets for retirement, including the latest policy initiative ‘KiwiSaver’, to date, there has been little focus on the policy issues around the decumulation phase. KiwiSaver is structured to provide a lump-sum for example, with no concerns yet articulated as to how the money might be drawn down in retirement. New Zealand has not been alone in focusing primarily on the accumulation phase. However New Zealand is a unique position in having perhaps the least proactive policy focus on decumulation in the OECD.