Environment
Our work supporting New Zealanders’ financial capability began when we first launched the Sorted website 19 years ago. At the time, it was revolutionary: there was nothing else like it for New Zealanders wanting to take control of their money. Then the introduction of KiwiSaver became a gamechanger and easy online accessibility changed the world. There is now a vast array of information on offer, from banks, KiwiSaver providers, registered financial advisors, global pundits, web entrepreneurs, and others.
However, the COVID19 pandemic is a stark reminder that economic shocks can be rapid and far-reaching. In times of great change, people want and need trusted financial advice more than ever, and Sorted is a highly trusted brand and a valued source of independent information.
Retirement is changing too. We are living longer, often working well past age 65, and some have a good range of options for where and how they want to live. Others - around 15% - arrive at pension age from a life of material hardship.
As the wealth gap has increased over the past 25 years, the issues around NZ Superannuation have become more complex. Is the pension a benefit or an entitlement? In any case, as discussed in our 2019 Review of Retirement Income Policies[7], there is clear evidence NZ Superannuation is valued by New Zealanders.
Retirement villages have become a growth industry. It has been estimated the industry needs to supply around 1800 new units per annum to meet demand over the next 20 years. The current model relies on peoples’ ability to release equity from accumulated assets: the clear trend toward lower home ownership, and increased mortgage debt at retirement, may impact the current business model.
And of course retirement policy issues overall are more dynamic as the demography of our country changes rapidly. So there is no shortage of work to do.
What next?
We have looked carefully at the scope of our work, on where we can make the most difference, and are now charting a more focused direction for the next four years.
In short, our independence and research capability is a key strength in terms of providing New Zealanders with trusted information; we need to bolster our work in providing informed advocacy on retirement- related matters; and ensure effective collaboration so that current and future retirees are served well.
All this activity is to provide current and future retirees with confidence in a system that supports good retirement outcomes.
[7] retirement.govt.nz/policy-and-research/retirement-income-policy-review/2019-review-of-retirement-income-policies/
Our vision and mission for the next four years is:
Tā mātou whakakitenga Our vision
New Zealanders retire with confidence
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Tā mātou kaupapa mātāmua Our mission
To help improve retirement outcomes for New Zealanders, with trusted information, informed advocacy and effective collaboration
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Tā mātou aronga Our objectives
Trusted information
Informed advocacy
Effective collaboration