The newly released FSC Financial Resilience Index 2025 has revealed a striking reality that only 44% of New Zealanders feel financially prepared for retirement. This marks a drop from last year, bringing us back to 2023 levels.
At Aurora, we see this not just as a statistic, but as a wake-up call and a meaningful opportunity. It’s a timely reminder that retirement readiness needs attention. Preparing financially is about feeling secure, having choices, and being able to enjoy the lifestyle you’ve worked hard for.
The retirement readiness gap
While some Kiwi are showing signs of improved financial resilience, such as being able to stretch their savings further, a growing number don’t feel ready at all. With more than half of New Zealanders still worrying about money weekly, financial security can feel out of reach for many.
Last year, we explored how much you might need to have saved for a comfortable retirement. According to 2024 research from Massey University’s Financial Education and Research Centre:
A no-frills retirement will cost around $500,000 in savings.
For a more comfortable lifestyle, including travel, dining out, and discretionary spending, you may need upwards of $1 million, especially in larger cities.
Read the full article here.
4 ways to strengthen your retirement plan
No matter your age or stage, now is the time to reflect and take action. Ask yourself:
1. Am I contributing enough to reach my retirement goals?
Even a small increase in contributions can make a big difference over time. Consider whether increasing your KiwiSaver contributions, even slightly, could help build your retirement nest egg more effectively.
Try the KiwiSaver calculator on the Sorted website to see how different contribution levels can impact your savings.
2. Is my KiwiSaver fund still the right fit for me?
Your fund choice should match your risk profile and life stage. Younger investors might benefit from growth funds, while those closer to retirement may prefer a more conservative approach.
A review with your financial adviser or a chat with the Aurora Client Care team can help ensure you're on track.
3. Am I maximising the government contribution?
Each year, if you contribute at least $1,042.86 between 1 July and 30 June, you’ll receive a maximum of $521.43 from the government. It’s free money toward your future, are you on track to receive it? Learn more about how to qualify here.
4. Do I have a clear retirement plan or could a chat with an adviser help?
Research from the Financial Markets Authority shows that New Zealanders who receive financial advice tend to have around 50% more in their KiwiSaver account than those who haven’t. Many people hesitate to seek advice, but professional guidance can provide clarity and confidence. Talk with your financial adviser or have a chat with the Aurora Client Care team to arrange a review.
Growing prosperity together
Retirement should be a time to enjoy life, not worry about money. With the right support, tools, and planning, you can take charge of your financial future today. Let’s work together to turn the tide and help more New Zealanders feel prepared.
Ready to check in on your KiwiSaver strategy? Talk to your financial adviser or contact us to talk to an Aurora KiwiSaver specialist. We’re here to help you grow your future, with clarity and confidence.
DISCLAIMER
This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any investment decisions.