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Are You Really Ready for Retirement?

Are You Really Ready for Retirement
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New Survey Shows Kiwis Still Struggling to Plan Ahead

A recent update to the InvestNow Retirement Readiness Index (RRI) reveals a concerning trend: many New Zealanders still aren’t financially prepared for their retirement years—and the numbers haven’t improved much.

The RRI, which is based on biannual surveys of both InvestNow customers and a sample of the general public (via TGM Research), measures how many people have a retirement plan they trust. This year’s overall score is 48.7%, a slight dip from the previous 50.4%, suggesting just under half of us believe we’re on track financially for life after work.

Confidence Varies Widely Between Investors and the Public

There’s a significant contrast between those who use investment platforms like InvestNow and the general public. Around 69% of InvestNow customers feel confident in their retirement plans, compared to just 14% of the public—down from 19% last year.

That’s a stark gap, but it’s not entirely surprising. Investors who actively manage their money are more likely to have considered retirement and taken steps to prepare. For many others, retirement might still feel distant or overwhelming to plan for.

Younger Investors Show Surprising Optimism

Interestingly, while people under 25 are the least likely to have a retirement plan, those who do are overwhelmingly confident in it. Among InvestNow customers in this age group, every single respondent who had a plan said they felt either “pretty confident” or “really confident” about it.

What’s behind this optimism? There are a couple of possibilities. On one hand, it could reflect a growing financial awareness among younger generations—perhaps helped by increased access to investing tools, online education, and financial content. On the other, it may simply reflect inexperience. Younger people haven’t yet faced big financial pressures like buying a home, supporting children, or experiencing market downturns over the long haul.

Regardless of the reason, it’s encouraging to see some younger Kiwis are thinking about retirement early—and backing it up with action.

Planning Peaks Then Fades?

Another curious finding is among the general public, the proportion of people with a retirement plan seems to peak in the 35–44 age group, then declines in older brackets. This could suggest some people start planning in midlife but then let their plans slide—or perhaps life circumstances force them to adjust or abandon their original strategies.

By contrast, among InvestNow customers, planning becomes more common with age, especially among those in their 50s and 60s. This aligns with major life shifts: mortgages get paid down, children become financially independent, and retirement starts to feel much closer.

Waning Faith in KiwiSaver

Confidence in KiwiSaver has taken a hit. Despite upcoming changes to default contribution rates announced in Budget 2025, many New Zealanders remain sceptical about relying on KiwiSaver alone to fund their retirement.

According to the survey, 74% of InvestNow customers and 63% of the general public say they don’t believe KiwiSaver will be enough to maintain their current lifestyle once they stop working. Just six months ago, the figure was 49% for both groups.

The drop in confidence may reflect recent market instability, including fears of an international trade war. But there’s a potential silver lining: downturns like this often motivate investors to engage more deeply with their financial strategies—and better understand the global forces shaping their portfolios.

Where Are People Turning for Advice?

When it comes to seeking help, the two groups differ. Among InvestNow users, the most popular source of retirement information is reading articles (26%), followed closely by consulting a financial adviser (23%). In the general public, 32% rely on a financial adviser, while nearly as many (30%) turn to friends or family for guidance.

While DIY investing is increasingly common, the value of expert advice shouldn’t be underestimated—especially when planning something as significant as retirement. A good adviser can help build a personalised plan, adjust it over time, and steer through periods of market turbulence.

The Need for Action Is Clear

Despite growing awareness, many Kiwis are still without a retirement plan. Among those who don’t yet have one, over half of InvestNow customers (53%) and more than a third of the public (34%) say they intend to make one soon.

Sometimes, the biggest hurdle is just knowing where to start. This is where InvestNow’s Investment Principles come in—a simple planning framework designed to help people create a strategy to fit their goals and risk tolerance. It’s not personalised advice, but it can be a valuable first step for anyone feeling stuck or unsure.

The message from the RRI is clear: while investor confidence exists—especially among those already engaged in planning—it isn’t yet matched by widespread retirement readiness. Whether you’re 25 or 65, it’s never too early or too late to take stock, build a plan, and give yourself the best chance of a comfortable retirement.

After all, it’s your future. Why leave it to chance?

Disclaimer:

This information is provided by InvestNow Saving and Investment Service Limited (“InvestNow”). The information and any opinions in this publication are based on sources that InvestNow believes are reliable and accurate. InvestNow, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of InvestNow, or otherwise, except for any statutory liability which cannot be excluded. All opinions and market commentary reflect InvestNow’s judgment on the date of this publication and are subject to change without notice. This disclaimer extends to any entity that may distribute this publication. The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019. In particular, in preparing this document, InvestNow did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser is recommended before making any investment. All Investments involve risk.