What to Do If You’re 60 and Haven’t Saved Enough
Photo source: openverse, Tinomen
Reaching 60 without a substantial nest egg can feel overwhelming, but it does not mean your retirement years have to be defined by financial stress. Many New Zealanders find themselves in this position, and there are practical steps you can take right now to improve your situation.
First, take stock of where you actually stand. Review your KiwiSaver balance, any other savings, debts, and your expected NZ Superannuation entitlement. Understanding your full financial picture is the foundation for making good decisions going forward. If you are unsure how to interpret your position, a session with a registered financial adviser can provide clarity without requiring a long-term commitment.
Consider whether working a few more years is realistic for you. Delaying retirement, even part-time, allows more time for savings to grow and reduces the number of years those savings need to stretch across. Many employers value experienced workers, and flexible or reduced-hour arrangements are increasingly common.
Look closely at your KiwiSaver contributions. If you are still employed, increasing your contribution rate, even slightly, can make a meaningful difference over the remaining years before retirement. It is also worth checking whether your fund type suits your timeline and risk tolerance, since this can affect growth potential.
Review your everyday spending and identify areas where adjustments could free up money for savings. This does not mean giving up things you enjoy, but rather being intentional about where your money goes. Small changes, sustained consistently, often add up more than people expect.
Think about your housing situation as well. For many seniors, the family home represents significant equity. Downsizing, or exploring options such as a home equity release, could provide additional financial breathing room, though these decisions deserve careful thought and professional advice given their long-term implications.
Do not overlook the support available through NZ Superannuation, Community Services Cards, and other government assistance programmes designed to help seniors manage living costs. Understanding what you are entitled to can ease pressure on your personal savings.
Remember that it is never too late to build better financial habits. Even modest, consistent steps taken now can meaningfully improve your position over the coming years. Approaching this stage with a clear plan, rather than avoidance, is one of the most valuable things you can do for your future peace of mind.
