NZ Herald 10 October 2026

QI have been reading your work for years now, even purchased your book Rich Enough? A laid-back guide for every Kiwi when it first came out.

I was born and raised in South Auckland where financial literacy is non-existent, with a lot of youths and middle-aged people driving massive utes, Audis etc. We have worked to get ourselves out of that mindset.

We don’t own a fancy car, and both vehicles are paid off. No credit card debt etc. I own a pair of clean sneakers which I clean regularly and look “new and expensive”, though they are really not.

I worry about leaving my kids with nothing if something were to happen, so me and the wife have knuckled down and tried to save a few dollars.

Our situation at the moment is:

• My current KiwiSaver balance is at $97,000. My wife is at $35,000 (she doesn’t work as she is a homemaker looking after the kids). We also get government assistance with Working for Families.
• We’ve been debt-free for almost two years now. However, we weren’t always lucky, as my parents had to sell their home to get us out of the red zone due to arrears (which have now been paid in full).
• We have $15,000 in term deposits due to mature in November. Also $10,000 worth in a share holding account and $10,000 in an investment fund where we contribute $25 weekly.
• We rent in Mangere at $780 a week, which is fine (well not really — it’s pretty expensive compared to rent in Palmerston North where we used to live).

We have four children, 16, 12 and twins 10.

I am the only one working, which is fine — employed with the same business for 21 years.

We were contemplating buying a house. However, as me and the wife are both 40 we do not want to burden our children with paying off a mortgage, in sacrificing their future or potential independence to travel the world etc.

I can’t see myself buying a house at 41 and to work till 70 to be mortgage-free. We also add the fact that health issues or sudden incidents could happen at any moment.

Our kids now have KiwiSavers that me and wife pay $5 a week to, with our eldest already having a Sharesies account.

In your opinion am I doing the right thing? Thank you for hearing me out.

QMy sister, now in her 60s, has been disabled from birth and needs 24-hour care. She is in a rest home, funded by her disability and accommodation benefits, but also topped up from a trust left by our parents, in order to get her her own room, and to buy better food and toiletries (pads), because the rest home’s food is woeful and pads are inadequate.

For many years she has been putting aside whatever she can into KiwiSaver and will have maybe $80,000 by the time she reaches 65.

I think that’s great, but have become worried that once 65, her KiwiSaver becomes seen as assets by “the funding system” and they will get effectively clawed back in place of some of her benefits.

Is that a real concern — for someone getting lifetime support from the government (topped up by family as well)? Is KiwiSaver safe savings or would someone like her have been better to spend her little extra along the way?

The details of her benefit are:

She gets a weekly “Supported Living Payment”. The MyMSD site shows the bulk goes to her rest home as a contribution towards their charges, the rest of their charges being the Residential Support Subsidy paid by the Ministry of Health.

The remainder of her Supported Living Payment goes to her (and some then to KiwiSaver), a standard $138.14 per week.

That’s it, apart from looking after equipment and related needs. They are handled by Accessable, funded by Disability Support Services. I understand that funding moves to Health NZ once she’s 65, but she would still see Accessable, no change on that.

QYou published my letter, last time, about some wealthy older people being reluctant to spend.

It’s quite true that people in my examples, or anyone, might have good use for whatever wealth comes along, but that doesn’t address what I was talking about, which is truly a serious problem — the unease about spending money for pleasure. I once wrote a short story about this. Here it is:

I knew my mother wanted the cushion. It caught her eye as we walked past the shop window. “Ooh look, isn’t that lovely dear,” and of course I agreed even though it wasn’t at all the sort of thing I liked myself.

“It would look beautiful on your sofa,” I said. “Let’s go buy it.”

“Oh no, you can see it’s expensive. I’m not wasting money like that.”

“Well, it will do no harm to ask. Come on,” and taking her by the arm, I got her into the shop. “You go and have a look and see if there’s anything else you like and I’ll ask how much it is.” To my relief she started down the aisle and I quickly approached the assistant.

The cushion was $49. “Would you do something for me,” I asked. “Would you tell my mother it’s on special today at $15 and please take this $34 to make up the difference.” The assistant must have known someone like my mother, who was always spending money on others without a second thought, but a different story when it came to spending money on herself.

She smiled and gave me a conspiratorial wink, “Of course I will.”

My mother’s mouth fell open. “Fifteen dollars — are you sure?” Her face looked a little doubting, but the assistant played the part brilliantly. “Yes, indeed madam, it’s a special just for today.” The cushion was popped in a bag and away we went, my mother thrilled to bits to have had such luck.

The cushion looked glorious on her sofa, with its pale green tufted satin and long silk fringe. The pleasure my mother got from it lasted until she died a few years later. She especially delighted in telling people what a fantastic bargain it was.

QI appreciate the writer of the first letter in your last column who shared her observations on how her older friends seem reluctant to spend money.

I have been in the retail business for over 40 years, and so have many of my suppliers. It has been frustrating experiencing this reluctance on a daily basis as we struggle to survive through this very challenging economy.

And yes, there is a group of mainly older people who feel entitled to “wander” around shops for free entertainment without thought to how these retail businesses can survive let alone thrive.

We have experienced a number of long-standing businesses liquidating, and prices increasing, but not so much to make a soap unaffordable. I often suggest that selling 10 soaps a day supports a part-time staff member, and last Xmas was the first time in 30 years I didn’t employ students. And my store is located in an affluent suburb.

And yes everyone deserves to spend their money as they see fit or not. But if they want vibrant thriving communities and abundant interesting stores near their retirement villages then it might pay to remember there are no banks in heaven.

QThe short answer to the situation described in the first letter last time: “Fly first class, or your children will!”

QIn response to your first letter, I wish to share some thoughts from a Muslim perspective.

Islam is a religion that legislates for every aspect of life. It is compulsory for any individual who has savings, gold and cash that has sat for a year to pay 2.5% of the balance in tax. The money goes to categories of people identified as needy — the disabled, orphans etc.

This is a form of self taxation nowadays. It was enforced during the Prophet’s lifetime. This does clear one’s conscience. The Prophet said it purifies wealth, as there is a share for everyone.

It was also made clear that wealth is given to some as a test. Society looks after one another. But of course, the tax does not go towards roads and infrastructure. The governments manage that through other income streams.