Judging the right time to retire is often dictated by finances. Photo / 123rf
Hard work, a kind property market and a “massive leap of faith” allowed Berni and Brian Blair to retire in their 50s. Fate too, if you believe in that kind of thing.
Now based in Hawke’s Bay, the couple self-funded their early retirement by selling their Wellsford hairdressing and earth moving businesses as well as the family home and three rental properties to spend their days travelling, rock’n’roll dancing and visiting grandchildren.
The couple took the plunge in 2017, when Berni was 50 and Brian was 56, after losing two friends to cancer and Brian suffered a stroke after a car accident, spending six months learning to walk again.
“When you lose friends so young, or suffer a personal trauma, you realise that life is short,” says Berni. “You only have your health for so long, so why spend it working for the tax man doing something you don’t enjoy?”
They are, she admits, “extremely lucky”.
“Not everyone can afford to retire before 65 but my advice is to have a retirement plan in place and to stop working as soon as you financially can because tomorrow isn’t promised.”
While Berni has several friends who’ve pulled the pin early, they’re in the minority: recent figures from the Household Labour Force Survey show that since 2000, growth in the number of employed people beyond superannuation age has been dramatic with 47% of Kiwis aged from 65-69 and 15% of those aged 70-plus still in paid employment. That’s an increase of 538% for those aged 65-69 and 750% for those aged 70-plus.
If the International Monetary Fund (IMF) has its way, more of us will be joining their ranks. In the April 2025 World Economic Outlook report, the IMF suggested raising the retirement age to 70, saying healthy workers should stay in jobs longer to mitigate the financial strain of increasing life expectancy, declining fertility and slower economic growth.
Besides, the report boldly declared, the “50s are the new 70s”.
Data from 41 economies showed a person who was 70 in 2022 had the same cognitive ability as a 53-year-old in 2000. Physical health had also improved, the IMF found, with 70-year-olds displaying the same fitness as 56-year-olds 25 years ago, based on grip strength and lung functionality tests.
Better health, the report argued, meant older workers could stay in the workforce for longer.
Closer to home, New Zealand’s Treasury has gone further, suggesting the retirement age needs to gradually increase to 72 over the next 40 years if we’re to keep our superannuation bill at 5.1% of GDP.
It’s a sentiment that sets Mike Calder’s teeth on edge.
The 64-year-old labourer might look like he could knock off a triathlon before breakfast, but years of manual work have taken their toll.
“My knees are shot, I’ve got arthritis in my hands, I need a hip replacement and have a dodgy back from when a window fell on it,” says Calder on the phone from Christchurch.
“My body is stuffed but I rent and have a child still at high school. I’ve been in low-paid jobs since I started working at 16 and can’t afford to pay into KiwiSaver so there’s no way in hell I’ll be able to stop working at 65 or even 70.”
Calder’s concern is for people who have to keep working for financial reasons but their bodies won’t co-operate.
“It’s all very well for workers in cushy office jobs to say keep working until you drop but the reality is that many manual workers physically aren’t able to. It doesn’t seem fair to have to keep working. What have we paid taxes for all our lives?”
Ian Fraser agrees. At 73, the founder of Seniors@Work, an employment agency for people in their mid-50s and up, puts in about 30 hours a week, with another six hours spent applying for funding for various organisations.
“I’m absolutely against raising the retirement age to 70-plus,” says Fraser from the Sandringham home he shares with his primary school teacher wife. “It would be especially cruel for manual workers whose bodies won’t allow it. They look forward to and deserve to receive super when they turn 65 because they’ve paid taxes all their lives.”
Fraser started Seniors@Work in 2019 after applying for 75 jobs but landing only three interviews.
“There was a lot of ageism and discrimination with recruiters immediately dismissing me because of my age. I thought, there must be lots of people in the same boat so let’s make it easier for them.”
Fortunately, he enjoys what he does because he can’t afford to retire yet.
“People think all boomers are filthy rich but we’re not. I still have a mortgage and like so many others I deal with, I need to work. Our generation didn’t have KiwiSaver and we didn’t save sufficiently for retirement, which is why so many over 65s who need to are still working, some with two or three jobs to top up their Super.”
The number of seniors registering with Fraser’s company has increased from about 30-50 a week to 50-100 per week in the past five months.
“That gives you an indication of how many older Kiwis are struggling and need to keep working because Super alone doesn’t allow for a comfortable retirement.”
It’s not just about the money though: Fraser says there are several positive reasons to remain in the workforce such as the social aspect, keeping his brain active and having something to get out of bed for each morning.
“I’ve seen posts on social media saying, don’t retire, it leads to an early death. I wouldn’t go that far but working is about more than just a pay packet, it’s also good for mental health.”
The father of two adult children says he’s eyeing up retiring at 78, by which time he and his wife will have downsized the family home to free up some cash.
“I agree we need to have the conversation about raising the retirement age because of economic factors, and I don’t know what the answer is, but putting it up to 70 is absolutely nonsensical. I don’t think any Government would have the balls to do it.”
As you’d expect, the Retirement Commissioner Jane Wrightson takes a more measured approach.
“Raising the age to 70 would disproportionately affect those in manual work, with poorer health, and lower-income careers, groups where Māori, Pacific peoples and women are overrepresented,” says Wrightson.
“Our system is not means-tested, which supports workforce participation and planning certainty. At just over 5% of GDP, our pension spend is modest by international standards. But it’s important we have principled, evidence-based conversations about the retirement income system as a whole and take a long-term view. What’s essential is a cross-party accord that preserves public trust and ensures future generations can rely on NZ Super as we do today.”
While Fraser hasn’t found much to like in the IMF’s retirement age increase proposal, he does approve of their associated policy considerations, such as promoting healthy ageing, supporting reskilling and increasing work flexibility.
“I get excited when I hear about employers who are becoming more flexible and enabling older people to work fewer hours, for example. And I’m a huge advocate of employers who provide opportunities for mature workers who might not be super skilled in IT, for example. I always say to job seekers, if you’re ever given the opportunity to undergo retraining then please, please take it.”
No amount of retraining or financial incentives would have made the Blairs stay in the workforce.
Now 58 and 64, the couple had a retirement plan in place for years – flipping houses – but when they met a pair of early retirees travelling around Aotearoa in a campervan, they decided to do the same.
“We sold everything and began our exciting next chapter of spending three months a year travelling in our caravan and three months overseas on cruises,” Berni says.
Their base between travels is a $70,000 Hawke’s Bay shed they converted into a comfortable one-bedroom lock-up-and-leave.
“It was an ugly shed we totally renovated ourselves by watching a lot of YouTube videos. It isn’t flash but it allows us to live the kind of life we want, where we wake up according to the temperature, not the alarm clock, and where we can go fishing, camping or just sit in the sun enjoying our time together.”
Neither has a private pension but they’re living off their managed investments.
“Our bank manager told us we could afford to live the way we are until we die. In our eyes, we don’t spend excessively. I cook a lot at home but if we want to go out for a meal we will. We were both brought up with the attitude that if you can’t pay for something in cash, then you don’t buy it. It also helps that we’ve never tried to keep up with the Joneses and would rather put our money into travel and experiences instead of the latest handbag or car.”
Not surprisingly, the couple isn’t in favour of raising the retirement age to 70, not just for the reasons you’d think.
“We reckon the retirement age should be lowered to 60,” says Berni. “Not only is raising it unfair for manual workers and people who’ve worked hard all their lives, but because young Kiwis deserve a crack at the job market. All these old coots staying on are taking jobs from the young ones. For goodness sake, retire and give the kids a chance!”
Is the IMF correct in believing that 70-year-olds in 2022 are as cognitively able as 53-year-olds? Yes, says professor Lynette Tippett, from the University of Auckland’s Centre for Brain Research and director of the Dementia Prevention Research Clinics.
“Findings in the IMF report indicate that 70-year-olds in 2022 are more cognitively able than 70-year-olds in 2000,” says Tippett.
“The improved cognitive ability is down to historical, societal and health influences over these lifespans. Compared to those who were 70 in 2000, persons who were 70 in 2022 lived through a period of relative food security, increased access to healthcare, vaccinations for childhood illnesses and increased educational opportunity, which we know underpins cognitive resilience in later life.”
Understanding, prevention and treatment of cardiovascular health and disease has also exploded in the past 20-30 years, which has had a major impact on brain health.
“Behaviours such as stopping smoking, treating high blood pressure and addressing factors like physical inactivity, obesity, diabetes and poor nutrition are not only good for the heart, they’re good for the brain and contribute to better cognition. Better access to health information, now available across media and social media, is also responsible for older New Zealanders making better health choices.”
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