For New Zealanders approaching retirement, the final five years of working life have become a high-stakes financial and health deadline, according to advice published by the NZ Herald on 3 November. The paper argues that poor savings habits, unmanaged health risks and family financial pressure can quietly erode the retirement people spend decades planning for.
The NZ Herald's advice column, written by an adviser at preventive healthcare and ageing-support company Age Brightly, profiles a 65-year-old client who wants to work until 70. She needs those five years of income for retirement to be viable, yet her savings, health and family obligations are pulling in opposite directions.
Why health is a financial asset in your 60s
The central argument is that earning capacity depends on health, yet health rarely appears in any retirement calculation. A fracture at 65 can mean months out of work, reduced mobility and a lasting loss of confidence. Citing Osteoporosis NZ, the column reports that roughly one in two women over 65 will experience a fragility fracture caused by weakened bones.
Cognitive decline is the second hidden threat. Hearing loss, cardiovascular health, sleep and physical activity all influence brain health, but the column notes these risks are rarely assessed together before problems emerge. Employers notice changes in memory, judgment and performance even when employees do not.
The column's blunt framing: because decline is not routinely measured, emerging risks go unrecognised while small changes are dismissed as normal ageing. In your 60s, the priority is protecting your ability to earn; in your 70s, avoiding preventable hospital admissions; in your 80s, preserving independence at home.
The savings gap hiding in plain sight
The client's case illustrates how a retirement plan can fail on paper arithmetic. On paper she could save $60,000 a year. In reality, she saves $10,000 through extra KiwiSaver contributions, while credit card debt outweighs her other savings. That is $50,000 annually slipping through the cracks.
Her investments add another layer of trouble. Some are performing 40 percent below expectations, masked by regular contributions. Her balance keeps growing, creating the illusion of progress when much of that growth is simply her own money going in.
Expecting someone who has struggled to save for decades to suddenly develop extraordinary discipline is not a strategy, the NZ Herald column argues. It recommends structure, automated savings and accountability instead of motivation. Put savings on autopilot, directing money into investments before it can be spent, and let habits catch up later.
Family spending: the retirement withdrawals nobody counts
Much of the client's overspending is not on herself. When her three adult children need something, the bill goes on her credit card with promises of repayment. Small, unpredictable amounts trickle back, enough for the children to claim they are paying her off, but never enough to cover the interest.
The column calls this pattern what it is: withdrawals from a retirement fund that is not theirs. It also names the cruel irony at its heart, compromising your own retirement to protect your children's financial wellbeing, only to become dependent on them later.
The recommended fix is behavioural rather than moral. The client has just started receiving NZ Super, and rather than letting lifestyle spending absorb it, the money is moved out of sight immediately. Next year, family expectations will be tackled together, with someone in her corner to hold the uncomfortable conversations.
Four mistakes to avoid before retirement
The NZ Herald column sets out four errors that matter most in the final stretch:
- Confusing moving money with saving it. Multiple accounts labelled Holidays, Treats and Emergency Fund provide a dopamine hit, but constant transfers between them build no wealth.
- Hiding behind a rainy-day fund. If credit card debt exceeds savings, financial security is an illusion. Clear the debt, even if it wipes out the savings.
- Relying on willpower. Automate savings before the money can be spent; force the outcome and let habits catch up.
- Ignoring invisible health risks. Decline starts before symptoms become obvious, and unmeasured risks go unaddressed.
Similar warnings are appearing offshore. Inkl recently flagged final-year mistakes including health insurance changes and benefit applications that take time to arrange, while The Free Financial Advisor warned against committing future retirement money to expenses only affordable on a salary, from farewell dinners to kitchen renovations. In Australia, CFS reports that downsizer contributions allow over-55s to add up to $300,000 from a home sale into super, a lever many older homeowners overlook.
Why this matters for New Zealand
The stakes in the NZ Herald's account are generational. If the client cannot work another five years, she risks becoming financially dependent on the very family members who currently depend on her, with consequences felt across generations. Ageism in the labour market compounds the problem, and it is one thing individuals cannot control.
What they can control, the column insists, is health, financial resilience and employability. Five years is enough to materially improve a retirement outcome, but only if people stop confusing good intentions with action. Health and wealth are inextricably linked; neglect one and you risk compromising the other.
FAQ
Why do the last five years before retirement matter so much?
There is less time to recover from poor decisions, less opportunity to compensate for inadequate savings and less room for the unexpected, according to the NZ Herald column of 3 November.
How much could one saver in the column have saved?
The 65-year-old client could theoretically save $60,000 a year but actually saves $10,000, with $50,000 annually lost largely to family spending and credit card debt.
What health risks threaten working into your late 60s?
Fracture risk and cognitive decline are the two flagged. Osteoporosis NZ reports about one in two women over 65 will experience a fragility fracture from weakened bones.
What is the recommended way to fix weak savings habits?
Automation: direct money into investments before it can be spent, clear credit card debt even if it empties savings, and get external accountability rather than relying on willpower.