Give your mum the gift of a comfortable, dignified retirement by having a quick chat with her about what’s next. Here are a few tips to get you started.
How good are mums? Sunday 11 May 2025 is Mother’s Day, and we’ve got a chance to celebrate them and say thanks for everything.
You could give her the classic socks, breakfast in bed, or a gift voucher. But to add a little something different and long-term, you could also give her the gift of a comfortable, dignified retirement - here’s how.
1. Have a conversation
Your mum might already be financially sorted for retirement, or she may need a gentle nudge in the right direction. Whatever the case, it can’t hurt to have a quick chat with her.
Lots of people are sensitive about money, so make sure you broach the topic with tact, and don’t worry if you get brushed off.
For example, you could start by asking whether she’s planning to retire soon, or how money’s going if they’re already retired. Then you could (very gently) ask a few more questions or make suggestions based on the below.
2. How much do you need for retirement?
This is a hard question, and unfortunately there are no easy answers! But there are a few rules of thumb for mum to consider:
- Don’t forget about NZ Super. At the time of writing (April 2025) a single person living alone gets $992.74 a fortnight after tax and a couple gets $1,527.28 a fortnight after tax. See more info here.
- Divide your savings by years. Another way to do things is to simply divide the amount of savings you have by the number of years you want it to last. For example, if you were retiring at 65 and wanted your cash to last until you’re 90, you’d divide your savings by 25. This gives you an exact amount to live off each year, and it’s conservative (since it doesn’t account for investment returns) so you might end up with more.
- Figure out how much they're currently spending per year. This will give you a base on how much life is currently, and an approximate for much you'll need per year. While some expenses like for kids may go down, expenses for health may go up in retirement.
- Follow the Massey University New Zealand Retirement Expenditure Guidelines. These say that including super you’ll need a total of $355,000 saved to live a budget retirement lifestyle as an individual living in a metro area, or $717,000 for a comfortable budget. Couples will need a bit more.
Any of these methods can work - the main thing is that mum’s had a think about how she’s going to fund her retirement and, if necessary, made some adjustments to ensure she’s sorted.
3. What can mum do to improve her retirement balance?
If mum does the maths and she’s not quite happy with how her retirement balance looks, there are a few things she can do to improve it.
Number one is to get advice. Speaking to a professional financial adviser she can trust will help get her on track for the best possible retirement, by helping choose investments, make sure she is in the right KiwiSaver fund, structure mortgages, and get the right insurances.
Next, it’s almost always a great idea to increase your KiwiSaver contributions if you're able, and to have other appropriate investments in place leading up to and during retirement. Even if your mum is years away from stopping work, it’s never too early to start saving.
Last, but certainly not least, it’s a good idea for mum to get rid of as much debt as possible before retirement. Start with high-interest stuff, like credit cards and personal loans, then once she’s paid those off move onto home loans. A good goal is for mum should be debt free by the time she retires.
4. Let's close the retirement gap
Unfortunately, women tend to be worse off than men in retirement. In fact, recent KiwiSaver data shows that their KiwiSaver balances tend to be 20% lower, and at age 60-64 they get paid 15% less. This is all despite the fact that women have a longer life expectancy than men, so may have longer retirements on average.
These gaps are because of structural inequities, including the gender pay gap, poor maternity leave policies, and more. Solving big problems like these requires a long-term concerted effort from businesses, and politicians, as well as husbands, daughters, sons and friends.
So, while we’re unlikely to solve these this Mother’s Day, we can do better than socks. We can give our mums the gift of support, care and a listening ear to make sure they enjoy the comfortable retirement that they deserve.
Disclaimer:
This ‘Happy Mother's Day! Is your mum sorted for retirement’ blog is general information only. The views and opinions expressed do not necessarily reflect those of the FSC. It is not intended to constitute legal or financial advice and does not take your individual circumstances and financial situation into account. We encourage you to seek assistance from a trusted financial adviser, legal or other professional advice.
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May 2025
