Financial capability is an issue for everyone. An ageing population will mean some new challenges and greater pressure on the public purse.
We believe the role of private provision, which simply means the amount we need to provide for ourselves out of our own savings, will increase.
The future holds some very real challenges for our children and our grandchildren.
They are our future retirees and the time for them to start thinking about saving for retirement is now. For many people getting to retirement in good shape is about ‘little and long’. We’d like wealth to happen ‘big and fast’, but it very rarely does. It’s worth noting that ‘little and long’ is not a very appealing idea for our active consumers of today.
We are working hard to build everyone's financial capability so that they reach their 60s with choices.
We have an increased focus on low income and vulnerable New Zealanders, who risk reaching retirement with little or nothing.
In our mission to build financial capability and ensure New Zealanders are prepared for retirement, we are working to deploy some best-practice behavioural economics by considering questions like:
- How do social norms affect behaviour?
- How do we mitigate people's present bias, where today seems more important than tomorrow?
- And what do we do about the mentality of scarcity that robs people of their ability to plan for the long term?