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FANZ Welcomes Retirement Income Review: Advocates For Bipartisan Vision & Stronger Role For Financial Advice
Financial Advice New Zealand (FANZ) broadly supports the findings of the Retirement Commission’s 2025 Review of Retirement Income Policies and its call for a long-term, bipartisan roadmap to strengthen New Zealand’s retirement income system.
“This review is a timely reminder that the nature of retirement is changing,” says Nick Hakes, CEO of Financial Advice New Zealand. “With more New Zealanders living longer, facing declining home ownership, and managing rising health costs, we need a system that is fair, sustainable and one which all Kiwis can have confidence in; and quality financial advice is central to achieving that.”
As the professional body for financial advice, Financial Advice New Zealand is uniquely positioned to assist policymakers in shaping pragmatic long-term solutions. Financial advisers are closest to the client conversation and understand the real-world financial decisions Kiwis face every day. This insight ensures that policy design translates into meaningful retirement outcomes for New Zealanders.
The review highlights several critical trends:
- Declining home ownership means more retirees will face ongoing housing costs, challenging the traditional assumption of mortgage-free retirement.
- Changing expenditure patterns, as evidenced in Massey University Fin-Ed and Financial Advice New Zealand research, show that retirees increasingly need flexible strategies to manage income and spending over decades.
- Rising healthcare costs add further complexity, making personalised financial planning essential.
“These realities underscore the importance of advice in the decumulation phase,” says Nick Hakes. “How Kiwis draw down their savings is just as important as how they accumulate them. Without structured guidance, many New Zealanders worry about if they have enough funds to retire on, and for others there can be a risk of underspending out of fear or exhausting their savings too soon.”
Financial Advice New Zealand also points to its Value of Advice White Paper, which found that professional financial advice significantly improves retirement outcomes by:
- Helping clients optimise KiwiSaver contributions and investment choices.
- Supporting informed decisions on drawdown strategies and managing sequencing and longevity risk.
- Building confidence and resilience in the face of financial shocks.
How financial advice supports the review’s recommendations
| Recommendation | Financial Advice as an enabler |
|---|---|
| Develop a nationally consistent decumulation framework | Advisers help retirees apply drawdown strategies, manage longevity risk, and integrate NZ Super with KiwiSaver and other assets. |
| Design and trial sidecar/emergency savings accounts | Advisers guide clients on balancing short-term liquidity with long-term goals, reducing hardship withdrawals. |
| Targeted KiwiSaver reforms (parental leave, low-income support, inclusivity) | Advisers explain new entitlements, optimise contributions, and adjust plans for life events like parental leave or late-career work. |
| Cross-party accord and
10-year roadmap | Advisers provide continuity and confidence during policy changes, translating how changes to legislation impact financial plans. |
| Improved data and hardship processes | Advisers interpret improved data, identify risks early, and guide decisions to protect retirement savings. |
Accessing financial advice is not a luxury, it’s a necessity,” says Nick Hakes. “As KiwiSaver matures and balances grow, the role of advisers in guiding decumulation and managing complex needs will only become more critical.”
Financial Advice New Zealand endorses the Retirement Commission’s recommendation for a cross-party accord and a 10-year roadmap. “Retirement policy must rise above political cycles. Certainty and stability are essential for public trust and effective planning,” says Nick Hakes.
National KiwiSaver policy announcement
Financial Advice New Zealand welcomes the National’s KiwiSaver policy announcement as a being consistent with a longer-term strategy for future contribution rates and a first-step towards a comprehensive KiwiSaver plan.
“We encourage all parties to work together on a bipartisan vision that integrates KiwiSaver, NZ Super, and innovative advice solutions to cater for New Zealander’s diverse retirement needs.
About Financial Advice New Zealand: Financial Advice New Zealand is the largest financial adviser-representative professional body for Financial Advisers and Financial Advice Providers (FAPs) in New Zealand. Our members provide trusted advice to consumers across financial planning and investments, mortgages and lending, and life, disability & health insurance, which ultimately helps Kiwis grow, manage, and protect their wealth.
Today, Financial Advice New Zealand is a vibrant, innovative association, where the underlying driver of policy is that great advice transforms lives. We promote the highest professional standards for financial advice, so more New Zealanders have the confidence to actively seek quality financial advice to improve their financial health, wealth, and well-being.
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