NZ's Retirement Crisis: Expert Calls for Cultural Shift in Savings
New Zealand faces a critical retirement savings shortfall as cultural attitudes and economic pressures create barriers to financial security. Experts call for urgent action to transform saving habits.
New Zealand families need new strategies to secure their retirement future beyond traditional housing investments
New Zealand Faces Critical Retirement Savings Challenge
New Zealand is rapidly approaching a retirement crisis as households and the nation struggle to meet future financial needs. This warning comes amid growing concerns about economic stability and savings rates across the country.
Blair Turnbull, CEO of Milford, emphasizes that traditional strategies like housing-only investments no longer suffice in today's economic landscape. This revelation comes as New Zealand's property market undergoes significant changes.
The Cultural Challenge: Breaking the Money Taboo
A significant barrier to improving New Zealand's savings culture is the widespread reluctance to discuss financial matters. According to a 2025 FMA report, 42% of Kiwis feel uncomfortable discussing their financial situation, while 61% describe themselves as financially uncomfortable.
"When we don't talk about money, we don't learn more about it, and we don't work through our problems together," says Turnbull.
Building a Nation of Savers
The statistics are concerning: Reserve Bank data shows New Zealand households experienced a net dis-saving rate of 3% of GDP in 2023. This trend reflects broader challenges in regional economic development and public administration.
Key Steps for Change:
- Promote open dialogue about financial planning
- Optimize KiwiSaver investments
- Develop more local investment opportunities
- Create stronger financial education initiatives
Turnbull advocates for expanding investment opportunities within New Zealand, particularly in infrastructure and listed companies. Currently, Milford maintains approximately 80% of investments offshore, highlighting the need for more domestic options.
Moving Forward: Individual Action and National Strategy
The path to financial security requires both individual commitment and systemic change. Small, consistent savings habits, combined with informed investment choices, can compound into significant retirement funds over time.
As Turnbull concludes, "Hope is not a strategy." New Zealand needs concrete action at both personal and policy levels to address this growing challenge.
Ella Thompson
Ella Thompson is a Wellington-based journalist covering politics, climate policy, and digital freedoms in the Pacific. With a background in law and international relations, she brings sharp analysis and a passion for civic accountability.