As of May 2025, the New Zealand government is revisiting the idea of gradually raising the age of eligibility for superannuation. While no law has passed yet, serious discussions are underway, and the implications are significant—especially for those born after 1970. If you’re part of this group, it’s time to start planning for a retirement landscape that could look very different from what was promised in the past.
Why the Retirement Age Is Under Review
New Zealand’s current retirement age is 65. This hasn’t changed since 2001, despite life expectancy increasing and the demographic balance shifting. According to Treasury projections, by 2040 nearly one in four New Zealanders will be over 65. The fiscal pressure of funding superannuation for a longer-living population is driving the call for reform.
The government’s review, backed by several economists and think tanks, suggests a gradual lift of the retirement age to 67 by 2044. Those born in 1970 or later would likely be the first cohort directly affected. The plan under consideration would phase in the change over a period of years to allow for financial adaptation.
Who Will Be Affected and When
Here’s a breakdown of how the retirement age could change based on your birth year:
| Birth Year | Current Retirement Age | Proposed Retirement Age | Year You Can Retire (Proposed) |
|---|---|---|---|
| 1969 or earlier | 65 | 65 | 2034 or earlier |
| 1970-1973 | 65 | 65.5–66.5 | 2035–2039 |
| 1974-1978 | 65 | 66–67 | 2040–2044 |
| 1979+ | 65 | 67 | 2045+ |
If you were born in 1970, you might retire a few months later than expected. If you were born in 1978 or after, you’ll likely be working until age 67. The phased approach is designed to soften the financial impact, but the effect on retirement timelines and savings strategies will still be significant.
What It Means for Your Financial Planning
Raising the retirement age changes more than just the date on your calendar—it affects how long you’ll need to work, how much you should save, and when you can access government support. For instance, Kiwis born after 1970 will need to factor in an additional two years of self-funded living, whether through KiwiSaver, personal savings, or continued employment.
Those in physically demanding jobs may find it especially difficult to keep working into their late 60s. Policymakers are considering targeted exceptions for people in high-risk or labor-intensive roles, but nothing is final. Younger workers might also need to rethink assumptions about pension reliability and consider investing more aggressively in their 30s and 40s.
How Employers and the Economy Could Respond
As the retirement age shifts, workplaces will need to adapt. This may include more age-inclusive hiring practices, retraining programs for older employees, and an emphasis on flexible roles that can accommodate changing health and energy levels. At the same time, delaying retirement can help ease the strain on the public purse and potentially strengthen the economy by retaining experienced workers.
However, not everyone agrees this will benefit all New Zealanders equally. Critics argue that people in lower-income brackets, who often have shorter life expectancies and fewer resources, will be disproportionately affected by the change. This has sparked calls for complementary reforms, such as early-access provisions and enhanced financial education.
Conclusion
If you’re a New Zealander born after 1970, the proposed superannuation changes mean retirement might come later than you thought. It’s not just about waiting longer to get your pension—it’s about rethinking how you prepare for the future. With the next election cycle likely to influence whether this proposal becomes law, keeping informed and adjusting your financial strategy now is the smartest move.
FAQs
What is the current retirement age in New Zealand?
The official retirement age remains 65 as of May 2025, but proposed reforms could change that for future retirees.
Who will be affected by the proposed retirement age increase?
Anyone born after 1970 could see their retirement age gradually rise to 67 by the mid-2040s.
When could these changes take effect?
If passed, the changes would begin rolling out around 2035, with full implementation by 2044.
Will there be exceptions to the new retirement age?
Possible exceptions for physically demanding occupations are being discussed, but no formal rules have been set.
How can I prepare for a later retirement?
Start saving more now, review your KiwiSaver strategy, and consider longer-term employment plans to stay financially stable.
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