Shortcomings of conventional retirement advice planning models are discussed. The impact of an expectations gap between the investor, the adviser and the product manufacturer is examined, and how baby boomers will drive financial advice from being supply driven to demand driven. Whether a more holistic, objectives-based approach to portfolio construction would better address baby boomer clients’ needs is considered and its benefits for advisers are explained. The important role of product providers in providing the vehicles to facilitate the execution of a variety of post-retirement strategies is stressed.

This report is the second in a three-part series seeking to understand Kiwi’s attitudes to retirement savings. It delves into the attitudes and expectations of older New Zealanders and sets out the results of research. FSC commissioned Horizon Research to interview 2,199 adults, a representative sample of the national 18+ population and gathered more than 3,900 comments from those interviewed. The research allowed FSC to estimate for the first time the total wealth New Zealanders expect to take into retirement. It also provides insights into where New Zealanders are under or over estimating how financially well off they will be after they stop paid work.

Traditionally advisers helping clients plan for their retirement years, make the assumption that clients need to accumulate sufficient funds to maintain a stable standard of living through their retirement. However, new research suggests that retirees spending actually tends to decline in real terms across their retirement. Some of this research is considered and what it means for advisers when developing retirement plans for clients is explained.