Retirement
Mortgage and retirement planning: strategies for reducing debt, improving cashflow, and planning ahead for life after work.
Articles in this topic
Planning for 30 Years of Retirement
Modern retirement can last three decades. Here is how to plan financially and personally for the long haul.
Retirement Village Costs and Options
Understanding the different types of retirement villages, their cost structures, and what to watch out for.
KiwiSaver After 65: Keep Contributing or Withdraw?
Your options for KiwiSaver once you reach 65-and whether continuing to contribute makes sense.
Healthcare Costs in Retirement
Planning for medical expenses as you age-what is covered, what is not, and how to prepare financially.
Property Investment for Retirement Income
How rental property can provide income in retirement-and the risks and responsibilities involved.
Downsizing Your Home for Retirement
How selling your family home and moving somewhere smaller can fund your retirement-and whether it is right for you.
Bridging the Gap: Income Before NZ Super
Strategies for funding the years between stopping work and receiving NZ Super at 65.
Retirement at 65: Is It Still Realistic?
Examining whether the traditional retirement age of 65 makes sense for modern New Zealanders.
How Much Do You Need to Retire in New Zealand?
Calculating your retirement number-the savings you need to maintain your lifestyle after you stop working.
NZ Super Explained: What You Will Actually Get
Understanding New Zealand Superannuation-what it pays, who qualifies, and whether it will be enough for your retirement.
KiwiSaver at 65: Withdrawal Options Explained
Reaching 65 unlocks your KiwiSaver, but how you withdraw matters. Understanding your options helps you make the most of your retirement savings.
Using Home Equity in Retirement: Options for NZ Homeowners
Your home may be your largest asset, but you cannot eat bricks and mortar. Here are the ways to access home equity in retirement without selling up.
Downsizing Your Home in Retirement: Financial and Lifestyle Considerations
Selling the family home and moving somewhere smaller is a common retirement strategy. Here is what to consider before making the move.
How Much Do You Need to Retire Comfortably in NZ?
The magic retirement number varies for everyone, but understanding the benchmarks helps you plan. Here is how to think about retirement savings in New Zealand.
What Is a Reverse Mortgage? How It Works for NZ Retirees
A reverse mortgage enables homeowners aged 60+ to access home equity without mandatory repayments. Here's what you need to know.
Frequently asked questions
Who can get a reverse mortgage in NZ?
Reverse mortgages are available to homeowners aged 60 and over. Lenders set loan-to-value limits based on age-15-20% at 60, rising to 40-50% at 80+-to ensure equity remains in the property.
Do I have to make repayments on a reverse mortgage?
No mandatory repayments are required while you live in the home. The debt grows as interest compounds, and repayment occurs when you sell, move into care, or pass away.
How much can a reverse mortgage grow over time?
Due to compound interest, a $100,000 loan at 8% would grow to approximately $215,000 after 10 years and $466,000 after 20 years-without making any additional drawdowns.
Will a reverse mortgage affect my estate?
Yes, the loan balance (including accumulated interest) is repaid from the sale proceeds when the property is sold. This reduces the amount your beneficiaries receive.
Can I end up owing more than my house is worth?
Most NZ providers offer a no-negative-equity guarantee, meaning you can never owe more than the property value. Your estate is protected from any shortfall.
What are the alternatives to a reverse mortgage?
Consider downsizing to release equity while eliminating the compounding debt problem. You could also draw down KiwiSaver if aged 65+, check eligibility for government support like the Accommodation Supplement, rent out a spare room, or explore family assistance options.
How do I access funds from a reverse mortgage?
You can receive funds as a lump sum for major expenses, regular drawdowns to supplement NZ Super, a line of credit to access as needed, or a combination of these options. You only pay interest on the amount actually drawn.
What happens when the reverse mortgage needs to be repaid?
Repayment is triggered when you sell the property, move permanently into residential care, or pass away. Your estate or the remaining owner sells the property, and the loan balance including accumulated [compound interest](/blog/the-magic-of-compound-interest-when-paying-down-your-mortgage) is repaid from the proceeds.