A Horizon Research survey of 1,632 ANZ customers in the Gen X age group (born between 1965 and 1980) found that 35 percent of respondents planned to retire when they turned 65, a quarter were unsure, and the rest expected to continue working.
Fiona Mackenzie, ANZ managing director for funds management, said the way people traditionally think about retirement and how they spend their so-called golden years is changing.
“I think this data is fascinating because it continues the trend of people thinking very differently about life after 65 and for the Gen Xers I think there is definitely a cohort that wants to stay in work because they don’t have that goal or structure need in their lives,” she said.
“We are living much longer and more people are working past the official retirement age of 65.
“For some this is out of necessity, but for many working their late 60s and even 70s, this is a lifestyle choice.”
Of respondents, 16 percent said they plan to give up full-time work in their 70s, 2 percent expect to continue working until age 80, and 3 percent said they would never retire.
However, 9 percent expect to retire before age 60 and 10 percent said they expect to retire between age 60 and 64.
The bank also surveyed people who had already retired, asking if they retired earlier or later than planned, and why.
“The main reason for retiring ahead of schedule was for health reasons,” Mackenzie said.
“Unfortunately, 25 percent of people who retired later than planned said it was because they didn’t have enough money to retire comfortably.”
Housing security may be a factor in people continuing to work past age 65 or planning to continue working, she said.
“For some of these people who still need cash flow financially and don’t have enough savings for retirement, they may not own their homes.
“I think this is something New Zealand will see more and more of, with declining home ownership rates.
“Superannuation is more or less designed on the assumption that everyone owns their own home and that’s increasingly not the case, especially in the millennial generation.”
For Gen Xers who worried they didn’t have enough money to retire, Mackenzie said there was still time to build savings.
“These are generally very financially productive years, and even if you plan to continue working past age 65, it’s a good reminder to stay focused,” she said.
She advised people to increase their KiwiSaver employee contributions or make voluntary contributions if they could afford it and to make sure they ended up in the right KiwiSaver fund for their stage of life.