A 100 day promise on superannuation, but a much bigger challenge ahead for New Zealand

National and Labour's commitment to bipartisan talks on superannuation in the next government's first 100 days is encouraging. But I worry that focusing on whether NZ Super starts at 65 or 67 risks missing a bigger challenge: preparing our healthcare, housing and retirement income systems for an ageing New Zealand.

Stats NZ’s projections suggest the number of New Zealanders aged 65 and over will reach one million by 2029.

Treasury's latest Long-term Fiscal Statement  warns current policies will become harder to sustain as New Zealand ages. There are around four working-age New Zealanders per person over 65 today, falling to two by 2065. Without policy changes, NZ Super costs are projected to rise from 5.1% of GDP to around 8% by 2065.

Any reform must protect those who have planned retirement around today's settings, while recognising those settings may be unsustainable for future generations. NZ Super remains the foundation of retirement security, supported by savings built through KiwiSaver. Both must keep pace with an ageing population. A man reaching 65 today can expect to live for another 19.7 years on average, and a woman another 21.8. That retirement may come with higher living costs, pressure on healthcare and, for a growing number of New Zealanders, no mortgage-free home. 

According to the Ministry of Social Development, mortgage-free home ownership among New Zealanders aged 45 to 64 has fallen from 60% in the early 1990s to 32% in 2024.

What does a secure retirement look like when the mortgage still needs paying and health or care costs could change overnight?

We have spent years encouraging New Zealanders to save for retirement. Now we need better answers for turning a finite pool of savings into dependable income. How much can you safely draw down without knowing how long it must last? How do you prepare for costs that could look very different at 80 than they did at 65? Government and the financial sector both have a role to play.

Preparing for greater healthcare demand  

Healthcare and superannuation are part of the same challenge. The Ministry of Health expects demand for health, disability and aged-care services to rise as the population ages.

From where I sit, that pressure is already visible. AIA New Zealand paid $177.31 million in health insurance claims in 2025, $10 million more than the previous year. For us, that increase is one indication of the growing demand moving through the health system, alongside the rising cost and sophistication of treatment.

That presents a difficult balance for government. People need treatment now, and our public system also needs the investment in hospitals, services and the workforce an older population will rely on in the decades ahead. 

But the opportunity is bigger than meeting the next healthcare bill. It’s helping people stay well enough to enjoy the years they have worked towards. 

Prevention needs to be considered alongside treatment and future capacity as an essential part of our health infrastructure, and this is an area where health insurers could make a greater contribution.

The next government should draw on insights from across the health system, including relevant, aggregated information from health insurers, to support New Zealand’s long-term health planning. This could help identify gaps in existing health data and strengthen prevention planning for all New Zealanders. 

Insurers hold valuable information about claims, treatment costs and healthcare trends, alongside experience with programmes designed to encourage healthier behaviours. 

Bringing those insights together with existing public health data could help establish prevention policies that serve us for decades to come. 

But getting on top of our healthcare challenges can’t just be seen as a government problem. We shouldn’t underestimate the role businesses can play in facilitating healthy behaviours in our population, and how this will reduce the strain and cost to the health system. 

We already contribute to prevention through our AIA Vitality programme, using incentives to encourage people to build healthier habits. Through this programme, we’re also gathering valuable insights into how people engage with preventative health initiatives. One example is our HealthyFood Benefit, which gives all Vitality members 10% off fresh fruit and vegetables at Woolworths, increasing to 25% when they complete a Vitality Health Check. Through this benefit, we can see how financial and point of sale incentives can help create healthier purchasing behaviours – at scale – as part of everyday grocery shopping.

That is one idea from one business, but I ask the private sector to imagine what could be possible with a more coordinated approach. 

A shared vision for retirement  

No matter the outcome of the election, I’m pleased that both major parties have committed to working together to tackle the challenges of superannuation. It will require all of New Zealand to do its part.

The longer we wait, the harder these pressures will be to manage. Whether NZ Super remains at 65 or moves to 67 deserves proper debate, but our ambition should go beyond making the numbers add up. 

Everyone wins when we have a healthier population. 

Working towards becoming one of the healthiest and best protected nations in the world means giving more New Zealanders the opportunity to enjoy later life in good health and with financial confidence. That is the retirement future we should be preparing for.