Working past retirement age: embracing a new chapter

In recent years, an increasing number of New Zealanders are choosing to work beyond the traditional retirement age¹. This trend reflects a shift in how we view retirement, with many seeing it not as an end, but as a new beginning. Whether driven by financial necessity, a desire to stay active, or the pursuit of passion projects, working later in life offers numerous benefits and opportunities.  
 

The growing trend  

While there is no set retirement age in New Zealand, access to Kiwisaver funds and eligibility for NZ Superannuation both generally start from age 65.  Statistics show a significant rise in the number of older New Zealanders remaining in the workforce, with over 65’s accounting for 6% of the labour force, up from just 1% in 1991¹. This trend is expected to continue as life expectancy increases and more people seek to maintain their standard of living.  
 

Considerations for working past retirement:

1.   Scaling back to part-time hours: One of the most common adjustments for those working past retirement age is transitioning to part-time work. This allows individuals to enjoy the benefits of continued employment, such as social interaction and a sense of purpose, while also having more time for leisure and family.  
2.   Changing careers to pursue a passion: Retirement can be an ideal time to explore new career paths or turn hobbies into income-generating activities. Many find fulfillment in starting a small business, consulting, or engaging in creative pursuits that they were unable to focus on during their primary careers.
3.   Maintaining health and wellbeing: Continuing to work can have positive effects on mental and physical health. Staying active, maintaining a routine, and engaging in meaningful activities can contribute to overall wellbeing. However, it’s crucial to balance work with self-care and ensure that the work environment is supportive and accommodating.  
 

Financial and social benefits  

Working past retirement age can offer several financial benefits, including continued income, delayed drawing on retirement savings, and potential increases in KiwiSaver balances. Additionally, staying in the workforce can provide social benefits, such as maintaining social connections and staying mentally engaged.  

As more New Zealanders choose to work beyond the traditional retirement age, it’s essential to consider the various options and strategies available. A financial adviser can help you work out the best strategy for your financial goals and circumstances. Whether scaling back hours or changing careers, the key is to find a balance that supports both financial security and personal fulfillment.  

¹ Labour force projected to grow and grey | Stats NZ