Fromsaving tospending:
Buildingaretirement planthatworks
Retirementdoesnotremove unforeseencosts,itsimply changeshowpeoplemust prepareforthem.Inretirement theabilityto“replace”an emergencyfunddisappears. Onceyou’veclockedoutfrom workforthelasttime,strategic planningisneededtoensure investmentslastthrough retirementandunexpectedcosts.
Theone-offexpensesretireesfaceare oftensignificant,includinghomerepairs, healthissues,helpingfamily,replacing vehicles,andagedcareneeds.“It’snotabout expectingthingstogowrong,”saysPlace.“It’s beingpreparedwhenlifechanges.Planning helpsreducefinancialstress.”
“Whenwe’reworking,we’dideallybe buildingtowardsaboutthreetosixmonths’ worthofexpensesandcallitemergency savings,”saysAMPretirementcoachDebbie Place.“Butwhenit’sretirement,wecan’t replacethatemergencyfundfromincome.”
AMPgenerallyrecommendsthatretirees maintain12months’worthofexpensesin cashfundsortheequivalent,dependingon individualcircumstances.
Partofabroaderplan
Anaccessibleemergencyfundisvitaland
mustbepartofawiderretirementstrategy, balancingimmediateneedswithlong-term growth,saysPlace.Keepingeverythingin cashmayreducelong-termgrowthpotential, whilekeepingeverythinginvestedcanexpose retireestotheriskofsellingduringamarket downturn.
It’sa“confidencetool”,saysPlace.Itallows retireestohandleaholeintherooforfour newtyreswithoutgoingintodebtoraccessing managedfundswheninvestmentmarketsare down.Thisalsoprevents“knee-jerk”emotional reactionstomarketnews,ensuringretirees don’tlockinlossesbysellingunitswhenprices aredown.
Identifyingthe“deficit”and“sensechecking”expenses
ThroughAMP’sretirementcoachingservice, Placeandherteamhelppeoplenearingorin
retirementsense-checktheirplansandmake themostofthesavingsthey’vespentyears building.
Atypicalconversationstartsby understandingpersonalcircumstancesrather thanapplyingaone-size-fits-allformula.“It dependsonyourexpenses,lifestyle,dayto-dayspending,hobbies,travelandfamily commitments.”
Shestartswith“sense-checking”expenses andcreatinga10-yearcashflowforecast. Thefirststepisathoroughunderstandingof theclient’sspending.TheAMPcoachworks withtheclienttofillinadetailedexpenses form,whichcoverseverythingfromfoodand subscriptionstohobbies.
Placeoftenfindsthatpeoplemaynotbefully awareoftheirownspendinghabits,andhave asurplusonpaperthatdoesn’texistinreality.
“I’llsay,‘right,thismeansyouhavethisleft overeveryfortnight,’andsometimesthey’ll go:‘Oh,actually,Idon’t’”Costssuchasvet bills,dogfood,orhobbiesaresometimes forgotten
Thegoalistoidentifythe“deficit” The gapbetweenguaranteedincomesuchasNZ Superandactuallifestylecosts Forexample, ifacouplereceivesabout$44,000fromNZ Superbutspends$60,000,that$16,000 differencemustbestrategicallydrawnfrom theirsavings
Areal-worldapplication
Placerecentlyworkedwithamortgage-free clientlivingalone Togethertheyestablished thatayear’sworthofemergencysavings wouldbe$40,000 Theclienthad$30,000set aside,expectingannualandretirementleave payoutstotopitup Byidentifyingother buffers,includingtermdeposits,Placehelped theclientunderstandhowthosefunds couldgrowifinvestedappropriatelywhile balancingimmediateneedswithlonger-term savingsgoals
Thethree-bucketstrategy:balancing accessandgrowth
Onceaperson’sfinancialpositionand deficitsareunderstood,Placewilloften useathree-bucketapproachtostructure investmentsaccordingtowhenthemoneyis
likelytobeneeded
● Bucket1:supplementsyourNZSuper tocovershort-termspending Thisiscashset asideforimmediateneedsandisprotected frommarketmovements “Youcanwakeup andthink,‘what’sgoingoninthenews?’” saysPlace “Butit’snotgoingtoaffectthe moneyyouhavesetasideinyourcashfund”
● Bucket2:coversspendingthatisstill severalyearsaway Thismoneyisinvested moreconservativelythanlong-termsavings, withafocusonpreservingcapitalwhile achievingmodestgrowth Overtime,itcan beusedtoreplenishBucket1andhelpfund futuretravel,largerpurchases,orother lifestyleexpensesduringretirement
● Bucket3:isdesignedforlong-term growth Peoplecanspenddecadesin retirement,sothisbucketisinvestedinmore growth-orientedinvestmentstohelpmoney continuegrowinguntilitisneededlaterin life
Thisstructureensuresclientsare notaccessingfunds“willy-nilly,”and acknowledgesthatmarketvolatilityis a“when,andnotanif”,Placesays An emergencyfundsitsalongsidethesebuckets ratherthaninsidethem Insuranceandretirementplanning Placeoftenfindsthatretireesarestill
payingforcovertheyneededwhentheyhad amortgageorchildrenathome “Youcould savemoneywithareviewatthatpoint,”she says “Myquestiontoclientsis,‘haveyou reviewedyourinsurance’?Isthelevelofcover stillappropriate?Arepremiumsaffordable?” Healthinsurancecanbecomemore important,butit’sworthreviewingcarefully, particularlylaterinlifewhenchanging providersmayresultindifferentterms, conditionsorexclusions Beforechanging anything,optionsavailableundertheexisting policyshouldbeexplored Insomecases, adjustmentssuchaschangingtheexcessor reviewingthelevelofcovermayhelpmake premiumsmoreaffordablewhilestillmeeting theirneeds
Theroleofholisticcoaching AMP’sretirementcoachingserviceis distinctfromtraditionalfinancialadvice Whileafinancialadvisormightlookat insurancesorinvestments,acoachlooksat thewholefinanciallifeofaclient,including theirspending,savingsandlifestylegoals Theservicetypicallyinvolvestwocalls: thefirsttounderstandthecustomer’soverall financialpositionandretirementgoals,and thesecondto“tweak”theirplanafterthey’ve hadtimetoreviewit
Plansthatevolve
Aretirementplanisnotastaticdocument AMP’sretirementcoachesadvocateforregular check-insbecauselifeis“ever-changing” Health,familycircumstances,housingneeds, lifestylepriorities,andmarketscanallchange Regularreviewsensurethatyour“buckets” remainfilledcorrectly,givingyouthefreedom toenjoyyourretirementwithouttheshadow offinancialstress
Thisarticleisintendedtoprovide generalinformationonlyanddoes nottakeintoaccountyourobjectives, financialsituationorneeds Before takinganyaction,westrongly recommendyouspeaktoafinancial adviser.Ifyoudon’thaveanadviser, contactAMPon08002675494.All formsofinvestmentinvolverisk,and returnsarenotguaranteed.
The money shocks Kiwis don’t see coming
AhealthyKiwihousehold canlookfinanciallysecure untilthepaystops,afamily memberneedshelp,ora majorbillarrives Thehidden emergenciesareoftentheones nobodyplansfor
She’llberightisstilltheattitudeofmany Kiwistofinancialrisks ‘It’snevergoing tohappentome’ Unlesstheywork ininsuranceorareveryriskaverse,many peopledon’tevenknowwhathiddenfinancial emergenciesfacethem
Nordotheyhavethesavingstocope Te AraAhungaOraRetirementCommission’s FinancialSentimentTracker,whichsurveys approximately1,000NewZealandersaged 18+perquarter,foundthatfortheyear
endedJune2026,thetotalnumberofNew Zealanderswithoutanemergencysavings fundis38%
Financialemergenciescanbeasingle catastrophicevent Formanypeopleit’sa seriesofordinary,butunavoidableexpenses thatpileupontopofeachother Theyinclude: Jobloss Redundancybelongsatthetopof thelistoffinancialdisastersthatcomeoutof nowhere Formostpeople,theirabilitytoearn istheirlargestfinancialasset Ifthepaystops unexpectedly,financialpressurecanstart withinweeks Redundancy,reducedhoursand businessfailuredon’tjusthappentoothers Theycanhappentoskilled,experienced workers
Illnessandaccident Losingyourincome, eventemporarily,canquicklyleadtomissed billpaymentsorloaninstalments Employees mayhavesickleaveforafewweeks,andACC coverspartofearningsafteranaccident But long-termillness,ratherthanaccident,isthe majorreasonKiwisbecomedisabled Ifpeople cannotcontinueworking,manyendupona benefit
Relationshipbreakdowns Thisisperhaps oneofthemostoverlookedfinancialdisasters formiddleincomehouseholds Thecosts involvedcanbehugeandcanincludelossof oneincome,thesuddendoublingofhousing costs,movingcosts,legalcosts,buying furnitureandhouseholdgoodsagain,and more Thelowerearnerisoftenhitveryhard Majorhousecosts Bothhomeownersand renterscanfaceunexpectedcostsreplacing expensiveappliances Homeownerscanbe hitwithmuchlargerbills,suchasaleaking roof,failedretainingwall,burstwatermainor brokenhotwatercylinder Theserepairscan costmanythousandsofdollarsandusually happenwithoutwarning Eveninsurance claimsinvolveanexcess,andsomerepairs maynotbecovered,suchasburstDuxQuest waterpipes,whicharecommoninKiwi homes Veterinarybills Vetbillsareacommon causeoffinancialdistressinNewZealand It’s notunusualtopay$10,000ormorewhena petsuffersamajorillnessoraccident Unlike humantreatment,pets’ailmentsarenot
subsidisedbythegovernment Vehiclerepairs AfailedWarrantofFitness, worntyres,afailedtransmissionortiming beltcaneasilycosthundredsorthousandsof dollars
Dentaltreatment Rootcanals,crownsand emergencyextractionsarerarelybudgetedfor andcancostseveralthousanddollars Familyemergenciesandcaringfor others Oneoftheleastrecognisedfinancial emergenciesisbecomingacarer Peoplefind theyhavetoquitwork,takeunpaidleave,or reducetheirhourswhenalovedoneneeds care Itmightbeachildwithaseriousillness ordisability,apartnerwhofallsmentallyor physicallyill,orhasanaccident,oranageing parentwhosuddenlyneedshelpwithdaily living Theremaybeadropinhousehold incomeatexactlythetimeexpensesarerising Theaimisnottopredicteverypossible emergency Itistobuildenoughfinancial breathingspacethatwhenlifethrowsan unexpectedbill,ajoblossorafamilycrisis, yourfinancescanbendwithoutbreaking
Abiggersalarywasonceseen asthepathwaytofinancial freedom.ButformanyKiwi families,risingcostsand growingcommitmentsmean earningmorestilldoesn’tfeel likeenough.
Agrowingnumberofhighearning Kiwihouseholdsarediscoveringan uncomfortabletruth:moremoney doesn’tautomaticallymeangreaterfinancial security.Despitesix-figureincomes,many familiesarestilllivingpaydaytopayday asrisingcostsandfinancialcommitments consumeagrowingshareoftheirincome.
“It’soneofthebiggestmythsinpersonal financethatahighincomeequalsfinancial peaceofmind,”saysTammyBarton,founder ofMyBudget,whichspecialisesinpersonal budgeting,debthelp,cashflowmanagement andsavingsplans.
Afterhelpingmorethan130,000Australians takecontroloftheirfinances,MyBudget islaunchinginNewZealandthismonth, bringingitspersonalised,hands-onapproach
tobudgetingtothissideoftheTasman.
TheissueMyBudgetistacklingis“theSilent Squeeze”thatmiddleNewZealanddoesn’t wanttotalkabout,Bartonadds:financial pressureaffectingpeoplewhooutwardly appearsuccessful.
“Aspeopleearnmore,theirbaseline spendingoftenrises,”shesays.“Abigger mortgage,nicercars,privateschooling andthecostofmaintainingabusylifestyle graduallybecomethenewnormal.”
Risinginterestratesandhigherliving costshavecompoundedtheproblem.Fixed commitmentsarehardforhouseholdsto reducewhencircumstanceschange.
“Whenyou’reearningagoodincome, admittingyou’restrugglingcanfeelincredibly confronting,”Bartonsays.“Moneyisrarely justaboutdollarsandcents.Itrepresents security,trustanddeeplyheldvalues.”
Theconsequencesoftenextendbeyond bankbalances.Moneystresscanfuelanxiety, disruptsleepandplacesignificantstrainon relationships,Bartonadds.Overtime,that invisibleresponsibilitycanquietlybecome resentment,evenwhenneitherpartner intendsforthattohappen.
Bartonbelievesthekeytofinancial confidenceisn’tearningmoremoneybut havingtherightsystem.
“Peopledon’thaveamoneyproblem. Theyhaveastructureproblem,”shesays.For
manyhouseholds,thatstructurebeginswith somethingdeceptivelysimple:abudget.
“Abudgetisreallytheonlywaytosee exactlywhereyourmoneyisgoing,whereyou arespendingit,whereyoumightbeableto cutbackandsaveand,mostimportantlywhat changesyoumayneedtomaketogetahead,” Bartonsays.
“Withoutaclearbudget,you’reessentially drivinginthedark.Youdon’tactuallyknow whereyoucantrimback,whatchangesyou needtomake,orhowmuchyou’retruly abletosave.Thatlackofvisibilitycreates significantstressandanxiety.”
“Themomentyouputacomprehensive budgettogetherandgiveeverydollar apurposebeforeitarrives,everything changes,”shesays.
“Abudgetisn’taboutrestrictionortaking awayyourlifestyle;it’saboutgivingyou control,peaceofmind,andsomething excitingtobuildtoward.”
“Takingcontrolofyourfinanceswith abudgetdoesn’tjustgiveyoufinancial freedom,itgivesyouthefreedomtoliveyour lifefreefrommoneyworries,”shesays.
“Thenextstepisputtingaclearplanin place.Ratherthanfocusingonlyontracking pastspending,MyBudgetworkswithclients tobuildaclear12-monthfinancialprojection, handlestheroutinetaskofpayingbills, andassignsadedicatedteamofexpertsto
Thesilentsqueezehitting high-incomehouseholds
supportyouinpayingoffdebtandcreating savings.Thisisthedifferencebetween knowingwhatyoushoulddoandactually livingwithoutmoneyworries.Theaimis toshiftpeoplefromreactingtofinancial surprisestohavingconfidenceintheir financialfuture.”
AsBartonsays,themomentpeoplegive everydollarapurposebeforeitarrives,their relationshipwithmoneycanchange.
Formanyfamilies,thepeaceofmindthat comesfromfinancialstructuremaybeworth morethanapayrise.
TammyBarton,MyBudget Founder&Director
Thesafetynetsthat protectyourmoney
Anemergencyfundisthe firstlineofdefencewhenlife takesanunexpectedturn.But frominsuranceandKiwiSaver hardshipwithdrawalstoWork andIncomesupportandlender assistance,thereareothersafety netsthatcanhelpwhenfinances comeunderpressure.
Ajobloss,seriousillness,relationship breakdown,orunexpectedbillcan quicklyturnacomfortablefinancial positionintoastressfulone.
MoneyMonththisyearisaboutpreparing fortheunexpected.TheTeAraAhungaOra RetirementCommissionrecommendshaving atleastthreemonths’worthofexpensesset asideinanemergencyfund.Anemergency fundcanbeaccessedimmediatelywithout applications,approvals,orpenalties.
Savingsarethefirstlineofdefence, buttheyarenottheonlyone.Therearea
numberofwaystoprotectyourselffromthe financialshocksthatcanotherwisederail yourplans.
Insurance:House,Contents,Income Protection,Health,andLife Insuranceisnotasubstituteforsavings, butitcanpreventasetbackfromturning intoamajorfinancialcrisis.Thesearesome oftheinsurancestoconsider:
•Houseinsurancecanmeanthe differencebetweenrecoveringfroma disasterandfacingfinancialruin.Contents insurancecanhelpreplacebelongingslost throughfire,theft,ormajordamage.
•Incomeprotectioninsurancepaysa percentageofincomeifyoucannotwork, whilemortgagerepaymentcoverhelpsmeet mortgagepayments.Traumacoverpays alumpsumforspecifiedillnessessuchas cancer.Lifeinsurance,whichpaysoutwhen youdiecanalsoincludesomeoftheseother coversasadd-ons.
•Healthinsurancecoversmedicalbills andcanhelpsomepeoplegetbacktowork morequicklybyavoidingpublichospital waitingtimes.
KiwiSaverhardshipwithdrawals
KiwiSaverisgenerallylockedinuntil retirementage,buthardshipwithdrawals canofferasafetyvalveinaseverecrisisifyou
cannotmeetminimumlivingexpensesor haveamedicalemergency.Applicationsare assessedbyKiwiSaverprovidersandrequire evidenceoffinancialhardship. WorkandIncomeassistance
WorkandIncomeprovidessupportfor peoplefacingfinancialdifficulty,including somepeoplewhoareworkingbutstruggling tomeetessentialcosts.
AssistancemayincludeJobseeker Support,AccommodationSupplement, TemporaryAdditionalSupport,Disability Allowance,andSpecialNeedsGrantsfor urgentcosts.Eligibilitydependsonfactors includingincome,assets,andhousehold circumstances.
Lenderhardshipprovisions
Homeownersexperiencingafinancial shockshouldcontactlendersandBuy NowPayLatercompaniesaboutdebtsand repaymentsassoonaspossible. Theyarerequiredbylawtoconsider optionssuchas:
•Temporarilyreducingrepayments
•Extendingtheloanterm
•Switchingtointerest-onlypaymentsfor aperiod •Restructuringlending Theearlieryouseekhelp,themoreoptions areusuallyavailablefromlenders.People
whoignoretheproblemsometimeslose theirhomesandotherassetssuchascars. Revolvingcreditandoffsetaccounts Revolvingcreditandoffsetmortgage accountscanprovidevaluableflexibility whentheunexpectedhappens.Ifyou’vebuilt upabufferbyoverpayingyourmortgagein thegoodtimes,theycanallowhomeowners toaccessfundsquickly.However,theyare debtfacilitiesandshouldbeusedaspartof abroaderfinancialsafetynetratherthana replacementforemergencysavings. Communityorganisations Budgetingservicesareoftenagoodplace tostartwhenyou’refacingacrisis.Their mentorscanhelpcreateaplan,negotiate withcreditors,accessfinancialassistance, andconnectwithotherservices.Theycan alsoprovideanindependentperspective whenfinancialstressmakesitdifficulttosee optionsclearly.
Otherorganisations,includingCitizens AdviceBureau,communitylawcentres,food banks,andcharitiessuchasTheSalvation ArmyandStVincentdePaul,canprovide practicalsupportandreferrals.These servicesarenotjustforlow-incomeearners. Jobloss,relationshipbreakdown,orillness canleaveanyoneneedinghelp.
Fromappsthatanalysespending totoolsthatautomaticallymove moneyintosavings,technology ismakingiteasiertounderstand yourfinancesandbuilda financialbuffer.
Technologyischangingthewaypeople managemoney.Understandingwhere yourmoneywent,usedtomean spreadsheetsandmanualtracking.Now, appsandartificialintelligencecananalyse spending,spotpatternsandhelpautomate betterfinancialhabits.
Technologythatcanhelpyouunderstand yourmoney
Newdigitaltoolsaremakingiteasier toseewheremoneyisgoingandidentify savingsopportunities.Oneexampleisthe freeSortedBufferBuilderapp,launched thisMoneyMonthbyTeAraAhungaOra RetirementCommissioninpartnershipwith ChristiansAgainstPoverty.
Withauser’spermission,BufferBuilder connectstobankaccounts,analysesyour transactionsandcategorisesspending.It isdesignedtohelpunderstandspending patternsandworkouthowmuchyouhave
availabletobuildanemergencyfundor financialbuffer.
Theappalsoincludesinterestingtools designedtobuildthatfinancialbuffer. FromwithinBufferBuilderyoucansetup regulartransfersfromyourregularbank accountsintosavings,rounduppurchases intosavingsormakeone-offcontributions. YousettheseupinBufferBuilder,which sendsyourinstructionsautomaticallyto Kiwibank,BNZ,ASBandWestpac,whileANZ functionalityismorelimited.
BufferBuilderispartofawidertrend towardstechnology-basedmoney management.Commercialbudgetingapps suchasPocketSmith,BudgetBuddieand SortMealsoallowusers,withpermission,to createbudgets,importbankingtransactions andanalysetheirspending.Theirfocusison budgeting.
Manyoftheseservicesrelyontechnology thatconnectsbankswiththird-partyapps. NewZealandfintechplatformAkahu providesthisconnection,allowingapproved servicestoaccessbanktransaction informationwithcustomerconsent.
Artificialintelligenceasamoneycoach
Artificialintelligenceisbecomingauseful toolforpeoplewantingtobettermanage theirfinances.Usedwell,itcanactlikea personalmoneyassistant,helpinganalyse spending,createbudgets,explainjargonand explorescenariosbeforemajordecisions.
Forexample,peoplecanuploadspending informationandaskAItoidentifypatterns, suggestwaystocutcostsorcreatearealistic savingsplan.Itcanalsochallengeour thinkingbyaskingquestionssuchas“what couldgowrongwiththisdecision?”or“what wouldacautiousinvestorconsider?”Thisis usefulbecausefinancialmistakesareoften drivenbyemotion,overconfidenceoracting tooquickly.
However,AIshouldbetreatedasa researchassistantratherthanafinancial adviser.Itcanproduceconfident-sounding answersthatarewrong,anditdoesnot understandthepersonalcircumstancesthat ahumanadvisercouldteaseoutunlessyou providethatcontext.
AIhasnolegalresponsibilitytoact inyourbestinterests,soimportant decisionsaboutinvestments, insuranceorretirementshouldstill involvecheckingreliablesourcesor seekingprofessionaladvice.
Bankaccountautomation
Banksofferanumberofother electronictoolstohelpmanageyour money.They’renotalwayssexy,but theycanbeuseful.
Somebanksandnon-bank accountscanautomaticallysplityour incomingpayintodifferentaccounts suchasbills,funmoneyandsavings. Otherscansweepmoneyleftat
Buildingabuffer: ThenewdigitaltoolshelpingKiwissave
theendofthemonthintosavingsorother accounts.
Popularwithsomecustomersare roundupsthatautomaticallytransferthe differencebetweenapurchaseandthe nearestdollarintosavings.Forexample, spending$5.49wouldmove51centsinto savings.Overtime,thesesmallamounts canadduptomeaningfulsavings.Some accountsalsoofferpaymentreminders,lowbalancealertsandunusualspendingalerts. Anyoneinterestedintechsolutionsfor moneyshouldcheckoutsomeofthenew fintechsinNewZealand,suchasDebut, Dosh,FeijoaandBoosterSavvy.Three soon-to-launchNewZealandappsareDashr, SteadyandPayDay.
Thefinancialcheck-up mostofuskeepputtingoff
Anhourtodaycouldsaveyou thousandstomorrow.
Whenwasthelasttimeyougave yourfinancesaproperhealth check?
Notjustpayingthebillsorcheckingyour bankbalance,butreallytakingstockof whereyourmoneyisgoing,whetheryour savingsareworkinghardenough,orif yourinsurancestillreflectsthelifeyoulive today.
Formanyofus,theansweris“it’sbeen awhile.”
It’sunderstandable.Betweenwork, familycommitmentsandtheday-to-day costofliving,reviewingyourfinances rarelymakesittothetopoftheto-dolist. Unlikealeakingtaporaflattyre,money problemsdon’talwaysdemandimmediate attention.Instead,theyquietlybuildover time.
Theironyisthatsomeofthebiggest financialgainsdon’tcomefromearning more,theycomefrommakingbetteruse ofwhatyoualreadyhave.
Takesubscriptions,forexample.
Streamingservices,fitnessapps,software membershipsanddigitalstorageplans canslowlyaccumulateuntilyou’repaying forthingsyou’veforgottenabout.Aquick reviewcoulduncoverhundreds ofdollarsayearthatcould beredirectedtowards savingsorpaying downdebt.
Thesame appliesto insurance.
Manypeople arrangecover afterbuying afirsthome orstartinga family,then rarelyrevisit it.Yearslater, circumstances havechanged, childrenhavegrown, mortgageshavereduced, orvaluablepossessionshave beenadded.Apolicythatwasperfectfive yearsagomaynolongerreflectyourneeds today.
Savingsdeservethesameattention.
Whetheryou’rebuildinganemergency fund,puttingmoneyasideforaholidayor planningforretirement,it’sworthasking whetheryoursavingsstrategystillmatches yourgoals.Evenincreasinga regularautomaticpayment byasmallamountcan makeanoticeable differenceover time,particularly whenit becomespart ofyourroutine ratherthan aconscious decision.
Thenthere’s retirement -something manypeople knowthey shouldthink aboutbutoften postponebecause itfeelstoofaraway.Yet retirementplanningisn’t aboutpredictingthefuture;it’sabout givingyourselfmorechoiceslaterin life.CheckingyourKiwiSaverbalance, reviewingyourcontributionrateormaking
sureyou’reinafundthat’sappropriate foryourcircumstancescantakelessthan halfanhour,butthebenefitsmaylastfor decades.
Perhapsthemostoverlookedpartof financialwellbeingissimplytalkingabout it.Moneyremainsoneofthelasttaboos inmanyhouseholds,despitebeingcentral tosomanyoflife’sbiggestdecisions. Conversationsaboutbudgeting,financial goalsorretirementplansdon’thavetobe uncomfortable.Infact,they’reoftenthe firststeptowardsmakingmoreconfident decisionstogether.
Noneofthisrequiresacomplete financialoverhaul.Inmanycases,the biggestimprovementscomefromsmall, deliberateactionstakenconsistentlyover time.
Setasideanhourthisweekend.Review yourspending,checkyourinsurance,look atyourretirementsavingsandthinkabout whatfinancialgoalmattersmosttoyou overthenext12months.
Yourfutureselfprobablywon’t rememberthetelevisionshowyou watchedinstead.Buttheyjustmightthank youforthehouryouspentgettingyour financesbackontrack.
Canregulation driveinnovationin ourfintechsector?
TomFilmer,founderofDashr, explainshowNewZealand’s newopenbankingrulesare pushingthebigbankstoopen up,andgivingstartupsthe foundationtobuildservices worthswitchingfor.
Fourbanks,littletochoosebetween Wedon’tusuallythinkofregulationasa friendofinnovation.Inbanking,itmaybe theonlythingthatmakesitpossible.For decades,NewZealand’ssectorhasbeen dominatedbyfourplayerswhosecore productsbarelydiffer.Onemightoffera revolvingcreditfacilitywhereanotherleans onanoffsetaccount;onestretchesinterestonlyorfixedtermsalittlelonger;servicing ratesvarybyawhisker.Fortheeveryday Kiwi,littleofitmakesarealdifference. Withsolittletosetthemapart,thebig bankscompetedonadvertisingratherthan genuinelyusefulfeaturesandhadscant
reasontohelpcustomersseetheirfull financialpicture.Doingsowouldonlymake iteasiertoleave.
Whatthelawactuallychanged
Recentopenbankinglegislationchanges allthat.SincetheGovernment’sregulated frameworkwentliveon1December2025, themajorbankshavebeenlegallyrequired tosharecustomerdatasecurely,withthe customer’sexplicitconsent.“Sharing”and “data”haveearnedabadnamelately,soa ruleabouthandingdataaroundcansound likebadnews.Infact,theimpactishugely positive.Inshort,theinformationyourbank holdsaboutyounowbelongstoyou,rather thanbeingtiedtothebank. Theproofisalreadyoverseas Wedon’thavetoguesswherethis leads,becausetwocomparablemarkets havealreadyruntheexperiment.Britain introducedopenbankingin2018,andbythe endof2025morethan15millionpeople, oneinfiveconsumersandbusinesses,were usingservicesbuiltonit,inanecosystem nowwortharound£4billion.Australia followedin2020withitsConsumerData Right.Frolloresearchtherein2025found peopleusingmoney-managementapps
savedaroundA$330amonthonaverage, withsavingsbalancesupaboutafifthwithin threemonths.Andwhenyourdataisyours ratherthanthebank’s,youbecomefarless “sticky”,freetocompare,moveandchoose. Thathandspowerbacktoyou.
NewZealand’sturn
Thepatternisconsistent:regulationforces theincumbentstoopenthedoor,nimble startupsbuildtheusefulservicesontop,and consumersgettoolsthebankswerenever goingtobuildthemselves.NewZealandis atthestartofthatsamecurve,withaccess wideningthrough2026and2027,anda localwaveofconsumerfintechisalready emerging.
WhyIbuiltDashr
ThisiswherethecompanyI’mbuilding, Dashr,fitsin.Itbeganwithasimple question:“howmuchmoneydoIactually have?”Ididn’tsetouttobuildanother budgetingapp,thoughasthereareplenty already.Iwantedsomethingmoreholistic thathelpsKiwisunderstandtheirmoney, acrossthethreeareasthattogethergivefull visibility:youremployer,wheremostofus earnourincome;yournetworkofadvisers andbrokers;andaccess,theappsand
accountsthemselves.
Educationisbuiltinthroughsimple, easy-to-applyprompts(checkyourrates, reviewyourinsurance,askforapayreview), plusdedicatedlearningmodules.We’renow pilotingitthroughemployers,helpingtheir peoplegetmorefromeverypaypacket:less financialstress,moreengagementanda meaningfulbenefit.
Becomingaregisteredbankhereis deliberatelyhard:ittakestensofmillions ofdollarslodgedwiththeReserveBank,so genuinechallengershavebeenrare.Open bankingchangesthegame,lettingasmall, self-fundedKiwiteambuildonthesame dataastheincumbentsthroughconsented, regulatedchannelsfarsaferthanthe password-sharingofoldmethods. Whatitmeansforyou
So,canregulationdriveinnovation? Inourfintechsector,italreadyis.Andas MoneyMonthbeginsitisareminderthatthe balanceofcontrolhastippedbacktowards you.Howwillyoumakethemostofit?
TomFilmeristhefounderofindependent financialwellbeingplatformDashr.Findout moreatwww.dashr.nz
TomFilmer
TheSandwich Generation:
Caringforeveryonewithout losingsightofyourownfuture
Ifyoufeellikeyou’rebeing pulledintwodirections,you’re notalone.
FormanyNewZealandersintheir40s, 50sandearly60s,lifehasbecomea balancingact.You’rehelpingyour childrengetestablished,whetherthat’s supportingthemthroughtertiarystudy, welcomingthembackhome,orcontributing towardsafirsthome,whilealsocaring forageingparentswhoneedmoretime, attentionorfinancialsupport.
Welcometothe“sandwichgeneration”.
Whileeveryfamily’scircumstancesare different,thefinancialpressurescanbe remarkablysimilar.Mortgagerepayments, risinglivingcostsandretirementsavings don’tstopsimplybecauseyourlovedones needhelp.Thechallengeisfindingawayto supportotherswithoutsacrificingyourown long-termfinancialsecurity.
Thefirststepisrecognisingthatit’sokay
tosetboundaries.
Manyparentsfeelguiltysayingnoto adultchildrenwhoneedfinancialhelp. Likewise,manypeoplefeelobligatedto shoulderthemajorityofresponsibilityfor ageingparents.Butbeforecommittingto ongoingfinancialsupport,takeanhonest lookatyourownbudget.Askyourself:canI affordthiswithouttakingondebt,reducing myretirementsavingsorcompromising essentialhouseholdexpenses?
Helpingfamilyshouldbesustainable,not stressful.
Openconversationsareequallyimportant. Ifyou’resupportingadultchildren,beclear aboutwhathelpyou’reabletoprovide andwhetherit’saone-offcontributionor ongoingassistance.Settingexpectations earlycanpreventmisunderstandingslater.
Thesameappliestocaringfor parents.Ifyouhavesiblings,discusshow responsibilities,bothpracticalandfinancial, canbeshared.Onepersonmaybeableto contributetime,anothertransport,and anotherfinancialassistance.Caringdoesn’t havetofallononesetofshoulders.
It’salsoworthtakingstockofyourown financialfuture.
Whenlifebecomesbusy,retirement savingsareoftenoneofthefirstthings peoplepause.Whiletheremaybetimes whenreducingcontributionsisunavoidable, trynottolosesightofyourlong-term goals.Evenmaintainingsmall,regular contributionscanmakeameaningful differenceovertime.
Reviewyourhouseholdbudgetatleast onceayear.Aretheresubscriptionsyouno longeruse?Couldrefinancingyourmortgage reducerepayments?Isyourinsurancestill appropriateforyourcurrentstageoflife? Smalladjustmentsacrossseveralareas canfreeupmoneywithoutrequiringmajor lifestylechanges.
Anemergencyfundbecomesevenmore valuableduringthisstageoflife.Whether it’sunexpectedcarrepairs,helpingaparent afterafall,orcoveringaperiodbetween jobs,havingsavingssetasideprovides flexibilitywhenlifedoesn’tgoaccordingto plan.
Perhapsthemostoverlookedaspectof
thesandwichgenerationistheemotional load.Supportingmultiplegenerationscan berewarding,butitcanalsobeexhausting. Financialstressisoftenintertwinedwith feelingsofresponsibility,guiltandthedesire todotherightthing.
Rememberthatlookingafteryourown financialwellbeingisn’tselfish,it’sessential. Thestrongeryourownfinancialposition, thebetterequippedyou’llbetosupportthe peopleyoucareabout,bothnowandinthe future.
Ifyou’refeelingoverwhelmed,don’t trytosolveeverythingatonce.Startwith onepracticalstepthismonth.Reviewyour budget,checkyourretirementsavings, organiseafamilyconversationorbooktime withatrustedfinancialadviser.
Beingpartofthesandwichgenerationisn’t easy,butitdoesn’thavetomeanputting yourownfutureonhold.Withthoughtful planning,opencommunicationandrealistic expectations,it’spossibletocareforthe peopleyoulovewhilecontinuingtobuildthe financialsecurityyoudeserve.
Retirementplansshattered:
Startingagaininyour50s
Yearsofsavingandplanning canbeundonebyevents outsideourcontrol.Retirement CommissionerDavidBoyle revealshowherecoveredaftera devastatingfinancialblowand thelessonshelearnedalong theway.
Formanypeople,reachingtheir50scomes withanexpectationoffinancialsecurity. Yearsofwork,saving,andpayingdown debtshouldmeanlifeisbecomingmore comfortable.Thensomethinghappensthat changeseverything.
Amarriageends.Abusinesscollapses.Ajob disappears.Ahealthcrisishits.Suddenly,the financialfoundationsbuiltoverdecadescan beshaken,leavingpeoplefacingthedaunting
prospectofstartingagainastheystaredown thebarrelofretirement.
Whenlifeturnsyourfinancesupsidedown RetirementCommissionerDavidBoylesaid unexpectedeventscanaffectalmostanyone, regardlessofincomeorage.It’ssomething Boyleunderstandsfirsthandbecauseit happenedtohimin2017.
He’dbuiltagoodcareerinfinancialservices, accumulatedafinancialbufferandhadgood plansinplaceforhisfuture.Thenhisfinancial securitywasblowntobitswhenhishomeof 15yearsturnedouttobeleaky.Therepaircost cameinat$600,000.
Startingoverafteramajormoneyshock Amajorfinancialsetbackcanleavepeople wonderingwheretobegin.Theinstinctmay betolookforaget-rich-quicksolution,such asthesocialmediapromisesof“financial freedom”.Butthoseshortcutsrarelydeliver theanswerandcanleavepeopleinaneven worsefinancialposition.
Afterseeingyearsoffinancialprogress wipedout,thetemptationtofindafastway
backcanbestrong.ButBoylesaidrebuilding securityisusuallylessaboutdramaticmoves andmoreaboutreturningtothebasics. “There’snosecretsauceormagicapproach,” hesaid.
It’sbettertositdown,considerthe challenges,andworkoutwhatchangesneed tobemade.InBoyle’scase,rebuildingmeant takingacloselookateverydayspendingand makingdifficultchoicesaboutwhatmattered most.“Disciplinereallysharpenedthesenses whenwewentthroughthatprocess.”
Creatinganewsenseofsecurityonedollar atatime
Becauseeverydollarmattered,the experiencesharpenedhisfocusonwherehis moneywasgoing.
“ImitigatedasmuchoftheoutgoingsI possiblycouldthatwere,Iguess,nicetohave ratherthanwhatIneeded,”hesaid.That evencamedowntothecar,whichwasn’tan essentialinhislifeatthetime.“Ididwithout acarforagoodperiodoftime.Fornearlytwo years.”
Healsostoppedspendingonhobbies,
includingbuyingrecords,whichwasdifficult becauseitwasoneofhispassionsinlife. Buildingupanewbufferwasmoreimportant. It’snotjustaboutspending.Wherepossible, increasingincomecanalsohelp,hesaid.Itis alsoimportanttomakesureyouhavegood insuranceinplace.
Movingfromfinancialsurvivaltostability
Boylesaidhavingafinancialplanandbuffer inplacehelpedhimweatherthefinancial shockofowningaleakyhome.
“Itwasn’teverything,butitwasareally goodbuffertomitigatethathugecostof somethingthatwenever,everexpectedor plannedfor.”
Boyle’sexperiencehighlightsthatfinancial shocksarenotalwaystheresultofpoor planningorbaddecisions.Sometimesthey aresimplytheresultoflifehappening.Having abufferdoesnotpreventunexpectedevents, butitcanprovidechoices,reducestress,and givepeoplemoretimetoworkthroughthe challenges.
The financial confidence gap
Whysomanycapablepeoplefeel overwhelmedbymoneyandhowtoclose thegap
Asksomeoneifthey’reconfidentdrivinga car,usingasmartphoneorplanningafamily holiday,andmostpeoplewon’thesitateto answer Askhowconfidenttheyfeelabout theirfinances,however,andtheresponseis oftenverydifferent
Despiteearningagoodincome,payingthe billsontimeandworkinghard,manyNew Zealandersadmittheydon’tfeelconfident whenitcomestomoney Theyputoff makingdecisions,avoidopeningfinancial statementsorsimplyhopethey’redoing enough
It’swhatmanyexpertsrefertoasthe financialconfidencegap-thedifference betweenmanagingmoneyandfeelingin controlofit
Theencouragingnews?Financial confidenceisn’tsomethingyou’rebornwith Likeanyskill,itcanbebuiltovertime
Whydoweavoidmoney?
Moneyisemotional Itcanbetiedtoour upbringing,ourrelationships,oursenseof successandevenourself-worth Thatmakes iteasytoavoid Forsome,it’sthefearofmakingthewrong decision Forothers,it’sthebeliefthey
don’tknowenoughtogetstarted Addin unfamiliarfinancialjargonandaconstant streamofconflictingadviceonline,andit’s nosurprisethatmanypeoplesimplydo nothing
Ironically,doingnothingisoftenthemost expensivedecisionofall
LeavingyourKiwiSaversettings uncheckedforyears,forgettingtoreview yourinsurance,delayingawilloravoidinga conversationaboutretirementwon’tusually createanimmediateproblem Instead,the consequencesbuildquietlyovertime
Confidencedoesn’tcomefromhavingmore money
Oneofthebiggestmisconceptionsisthat financialconfidencebelongstopeoplewith highincomes
Inreality,confidenceisfarmoreclosely linkedtohabitsthanbankbalances
Someoneearningamodestincomewho understandstheirspending,hasasmall emergencyfundandregularlyreviewstheir financesmayfeelfarmoresecurethan someoneearningtwiceasmuchwhoavoids lookingattheiraccounts
Financialwellbeingisn’taboutperfection It’saboutknowingwhereyoustand andfeelingequippedtomakeinformed decisions
Smallactionsbuildmomentum
Confidencerarelyarrivesallatonce It growsthroughaction
Bookinganhourtoreviewyourhousehold budget LoggingintoyourKiwiSaveraccount forthefirsttimeinmonths Comparing insurancepolicies Settingupanautomatic savingstransfer Havingaconversationwith yourpartneraboutfinancialgoals
Noneofthesetasksareparticularly difficult,buteachonereplacesuncertainty withknowledge
Andknowledgehasawayofmakingthe nextdecisioneasier
Stopcomparingyourfinancialjourney Socialmediahasmadeiteasytocompare ourfinancialprogresswitheveryoneelse’s Weseestoriesaboutinvestmentsuccess, mortgage-freefamiliesandoverseas holidays,butrarelythefullpicturebehind thosemilestones
Everyone’sfinancialjourneyisdifferent Somepeoplearesupportingageingparents Othersarehelpingadultchildren Some arerebuildingafterredundancy,illnessor divorce Comparingyourselftosomeone else’shighlightreelisrarelyhelpful
Thebetterquestionis:AmIinastronger positionthanIwasayearago?
Buildyourconfidenceonedecisionatatime
Youdon’tneedafinancedegreeoran investmentportfoliotofeelmoreconfident aboutmoney Yousimplyneedtotake ownershipofthedecisionswithinyour control
Startbychoosingonefinancialtaskyou’ve beenavoiding Itmightbereviewingyour KiwiSaver,checkingyourinsurancecover, creatingasimplebudgetorfinallymakingan appointmenttowriteawill Thenchooseanothernextmonth Overtime,thosesmalldecisionsbecome habits Thosehabitsbecomeconfidence Andconfidencemakesiteasiertonavigate whateverlifethrowsyourway
Financialconfidenceisn’tabouthavingall theanswers It’saboutknowingyoucanask therightquestions,makeinformedchoices andadaptwhencircumstanceschange
Thegoalisn’ttobecomeanexpert overnight It’stofeelempoweredenoughto takethenextstep
Becausewhenyoufeelconfidentabout yourmoney,you’renotjustimprovingyour finances–you’regivingyourselfgreater freedom,morechoicesandpeaceofmind forthefuture
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