NZ Herald 25 April 2026

AHave you ever thought about how lucky you — and I — are that we’ve been in a position to work most of our lives?

Think about the people who haven’t earned taxable income because of physical or mental health issues? Or because they were taking care of family with disabilities? Surely you would still give them NZ Super.

But the minute we start getting into: “Why did you pay no tax?”, we invite people to make up stories. And we have to hire government officials to check whether those stories are true, not always getting it right.

The logical extension to your argument is to means test NZ Super, paying little or nothing to wealthy people, regardless of how much tax they have paid. But that would mean even more — many more — officials to check if people are hiding their wealth through trusts and other mechanisms, or “giving” their assets to their children but still using them, or getting around the system in any number of other ways.

In any case, NZ Super is not really a reward for paying taxes when you were younger. Back then, in exchange for the money you paid, you received government services, such as police, education, health care and roads, as well as support for people who were retired then.

In turn, people over 65 now receive Super as a right, paid by those currently working.

Experts around the world praise NZ Super for its simplicity and universality. Many regard it as a national treasure.

True, we may have to make some modifications to the rules, given how many more over 65s there are now than a decade or two ago. That’s partly because of the baby boom, and partly because medical advances keep people alive for longer.

Perhaps we’ll have to gradually raise the eligibility age — although that would need to be done with care to not hurt some people disproportionately. And perhaps we should slow the pace of annual NZ Super payment increases. But I don’t think we should mess with means testing or your suggestion.

AWe do, indeed, need all the laughs we can get these days. And the Q&A about Calment — who died at 122, way outliving the man who had signed a deal to get her house upon her death in exchange for giving her monthly payments — is only half of the story! Read on.

AYes, that’s another intriguing twist in a fascinating story.

According to Wikipedia, people challenging her age at death have said, “Jeanne died in 1934 and her daughter Yvonne, born in 1898, assumed her mother’s official identity and was therefore 99 years old when she died in 1997.”

But the theory is discounted by experts.

One of them, French gerontologist Jean-Marie Robine, “pointed out that during his research, Calment had correctly answered questions about things that her daughter could not have known first-hand,” says Wikipedia. “Robine also dismissed the idea that the residents of Arles could have been duped by the switch.”

AFirstly, forget about the “stupid to ask” bit. There’s no such thing as a stupid question about investing and financial stuff. Asking is how we all learn.

Now, let’s see if we can get rid of your trapped and confused feelings.

What can you expect from the government after you turn 65? Basically, NZ Super, which is currently just under $2,000 a fortnight, before tax, for a couple, plus $64 winter energy payment from May through September.

At some stage you may also be eligible for other support, such as the accommodation supplement, disability allowance and residential care subsidy.

I have to say that I’m not keen on some of your ideas for your future:

• I would hate to be counting on free housing from the government. That’s available only for those with pretty much no savings, including KiwiSaver money that’s accessible after you reach NZ Super age.

  And there are no guarantees about the quality of future state housing, or even if a place would be available. The whole “the government will house us” attitude feels horribly disempowering.

• Moving to a cheaper country? Your savings would certainly go further. But do you want to leave family and friends, and live in a country that may offer little support if you need it?
• On investing in gold, silver or mutual funds — called managed funds in this country — I would stay clear of the precious metals. They can do really well for a while — and indeed have done so at times in the last few years. But their value can also fall pretty fast.

  For an experienced investor, with plenty of savings, gold and silver can give some diversification with a tiny portion of their savings. But that’s not you.

  Managed funds are a different story. They include KiwiSaver and non-KiwiSaver funds, and come at varying risk levels. If you decide against going for home ownership, they would be a good spot for your savings.

  In retirement, put spending money for the next roughly two years in a low-risk cash fund, money for two to ten years in a mid-risk balanced fund, and perhaps longer-term money in a growth fund. But that last bit applies only if you can tolerate ups and downs in your balance. If not, stick with a balanced fund.

However, I don’t think you should give up on home ownership. Most people really like the security it brings in retirement. And it’s not as if you have no deposit money. Well done on your KiwiSaver and other savings!

I asked Bruce Patten, CEO of mortgage aggregator NZFSG, whether you would be able to get a mortgage.

“This is a common occurrence, and interestingly one that wouldn’t have played out the same way in my opinion if it weren’t for KiwiSaver,” he says. “Most people couldn’t have saved that much money if it hadn’t been locked into KiwiSaver.

“It’s great to see someone have the opportunity to purchase their own home, even if only for 8 to 10 years.

“What they have to think about is their plan after retirement? If they have a $550,000 mortgage, in eight years at age 65, the debt will only be down to $482,000 based on a 30-year term.

Patten says banks can’t discriminate on age, but “they will look to responsible lending criteria when determining the loan term they will give. Some will allow a 30-year term as long as the couple have an exit strategy. For example:

• “Sell and downsize, maybe move out of Auckland.
• “Possibly an inheritance from family? However, this isn’t usually considered an exit strategy as such.
• “The ability to repay the loan quicker or pay lump sums?
• “At 57 years old, lenders may consider that borrowers are probably at the height of their income earning ability, so income increases might not be considerable.”

He suggests you consider whether you could pay the loan over a shorter period, “like 15 years, so that in eight years the balance is down to $340,000, meaning they have more equity and a lower debt that may be affordable on a lower income.”

How about buying a modest home, and then making an all-out effort to pay off the loan as soon as possible? At the same time, build up your KiwiSaver balances again, so you benefit from employer and government contributions. Then, at 65, use that money to put a hole in the remaining mortgage.

You could also boost your financial situation by working past 65 — either in your current jobs or perhaps doing something completely different, on a full-time or part-time basis.

According to Stats NZ, 44% — not far off half — of people aged 65 to 69 were in part-time or full-time employment in the 2023 Census.

For people aged 70 to 74, it was 25%, and for people 75 and older it was 10%. All the numbers are considerably higher than ten years earlier.

Some over 65s say they are continuing work because of financial pressures, while for others it’s more about the social interaction and sense of purpose they get from working.

So — lots to think about. I hope you’re feeling more positive about your future.

The next Q&A should be of interest to you.

AIndeed it is, although there are online mortgage calculators that will show you the same thing, and are perhaps easier to use.

The mortgage calculator on sorted.org.nz is a good one. It lets you try different payment amounts and frequencies, different terms — the number of years the loan will run — and so on.

Through your questions to AI, you’re clearly making the point that weekly payments that are a quarter of monthly payments works out better.

That’s partly because you are making most of the payments a bit earlier each month — in the first, second and third weeks.

Also, there are not four times twelve — 48 — weeks in a year, but 52. So there will be some months in which you make five weekly payments. If you receive your income monthly, you might find the five-payment months a bit tricky.

Still, if you can manage it, weekly payments can work well. You not only get rid of the debt faster, but also pay less total interest, as your figures show.