30 January 2023
The Great Unretirement
“NZ Super provides an essential lifeline for many. One of the great things about NZ Super is that there is no disincentive for people to stay in, or return to, paid work because it isn’t means-tested."
According to research undertaken for the 2022 Review of Retirement Income Policies, housing costs are a particular concern for older people, as around a third of the over 65s paying rent or making mortgage repayments (only half the over 65s actually own their own home outright).
“One of the key recommendations I have made following the release of the 2022 Review of Retirement Income Policies is to keep the age of eligibility at 65. Any increase is only going to further disadvantage those who need it the most, particularly Māori, Pacific Peoples and women,” says Jane.
Mary Glowacka, Centre of Excellence Lead in the Human Resources Chapter of Preply, says, “The COVID-19 pandemic saw a large number of older people leave their jobs in many countries but this trend is reversing with many now returning to work post-pandemic amid the cost-of-living crisis and concerns regarding their future retirement income.
“Companies need to consider how they can support older workers’ return to the workforce. Policies that prevent age discrimination need to be established and enforced. In addition, training and assistance needs to be provided to successfully match older workers with the right job opportunity for them.”
Calculate what you could draw in retirement.
According to Statistics New Zealand, those aged 65 and over represent 15 percent of the total population of Aotearoa. Of this 15 percent, about a quarter are still working, whether that be full-time or part-time. While there is no official retirement age in Aotearoa, and mandatory retirement was abolished in 1992, New Zealanders have some of the longest working lives in the developed world.
The Great Unretirement is becoming an increasingly required option for many older New Zealanders. It provides a way to supplement income while remaining engaged and productive. For more information on the study, read more here.
This article is for informational purposes only and should not be considered financial or medical advice.