KEY POINTS:
More New Zealanders expect to be working at age 65 than their Australian counterparts, and more expect to need government support when they do retire, a study has found.
The report, by consulting and investment company Mercer, reveals 65 per cent of New Zealanders expect they will still be at work at retirement age, compared with 44 per cent of Australians.
Grey Power national president Graham Stairmand attributed the relatively high New Zealand figure to the country's ageing baby-boomer population. Many boomers had not begun to save for their retirement until after the age 45, as their earlier years were spent paying for things such as children's education, he said.
However, he believed the statistic would be "completely different" in 20 years' time as the next generation left the workforce, thanks mainly to the KiwiSaver scheme.
Some 39 per cent of New Zealanders wanted to retire by age 60, compared with 51 per cent of Australians.
Better salaries were on offer in Australia, meaning retiring at 60 was a more realistic proposition, Mr Stairmand said. "The Australian economy seems to be relatively high wage ... it gives more people disposable income." The 39 per cent of New Zealanders would relate to those in "the well-paid jobs", he said.
Mercer's New Zealand head, Bernie O'Brien, said while there were important differences between the two, the study highlighted a gap between when New Zealanders would like to retire and the reality of when they would retire, which was of concern.
Mr O'Brien said he thought the differences between the two countries reflected an increase in voluntary participation in Australia's retirement system, "which provides an achievable model for Kiwis to aspire to".
The study found Government assistance would be expected to account for 22 per cent of Kiwi retirement funding, compared with 13 per cent in Australia. That superannuation schemes contributed 27 per cent to a Kiwi's retirement funding - compared with 43 per cent in Australia - could be attributed to the imposition of fringe benefit tax on private New Zealand super schemes, Mr Stairman said. "We have some crazy laws in this country."
KIWIS WORKING LATE
* 65 per cent expect to be working past 65
* 39 per cent would like to retire by 60
* 9 per cent would like to retire by 50
* 22 per cent of retirement funds likely to come from pensions
* 27 per cent of retirement funding likely to come from superannuation
- NZPA
