Money Myths Seniors Still Believe

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Money myths can quietly cost older Kiwis time, comfort and peace of mind. Many of these beliefs were passed down through families or shaped by a very different economy. Here are some of the most common money myths seniors still believe, along with the facts to help you plan with confidence.

Myth 1: Once you retire, you should stop investing.

Retirement can last twenty-five years or more. Moving all your money into cash may feel safe, yet inflation slowly reduces what it can buy. A balanced approach, matched to your comfort with risk, often suits retirees better. Free guidance from Sorted and the Retirement Commission can help you understand your options.

Myth 2: You must withdraw KiwiSaver at 65.

Many people believe KiwiSaver must be emptied once they reach eligibility age. In fact, you can usually leave your money invested and withdraw it when you need it. That flexibility can help your savings keep growing for longer. Check your provider’s current rules, as conditions can change.

Myth 3: Giving your home to the kids protects it from rest home costs.

This is one of the most misunderstood money myths of all. Gifting assets can affect subsidy eligibility, and there are rules about gifts made over time. Talk to a lawyer or a trusted adviser before transferring property or large sums, so your own care options are protected.

Myth 4: It is too late to get organised

It is never too late to review your budget, update your will, set up an enduring power of attorney, or check that you are receiving every entitlement, including SuperGold Card discounts. Small steps taken now can make a real difference to your wellbeing and to your family’s peace of mind.

Busting money myths is one of the easiest ways to feel more in control of your finances. Check the facts with reliable New Zealand sources, ask questions and take your time with big decisions.