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Popular Financial Products for New Zealanders Over 60 (and What to Avoid)

We list popular financial products for New Zealanders over 60, including credit cards with lower income requirements, low-fee investment platforms, KiwiSaver beyond 65, home equity options, as well as highlighting products to avoid during retirement.
Updated 2 December 2025
Summary
  • Many financial products are designed with younger New Zealanders in mind - people building careers, paying off mortgages, and accumulating wealth.
  • However, those over 60 often have different circumstances and goals - NZ Super as a baseline income (for those 65 and over), mortgage-free homes, decades of paying bills without issues, and priorities ranging from travel to helping adult children and grandchildren to making retirement savings last.
  • This guide focuses on financial products that recognise these realities and offer value.

Our guide covers:

Products and Approaches to Consider - From Credit Cards to Budgeting Apps

Credit Cards with Lower Income Requirements and Low Fees

Many retirees are declined for credit cards despite being debt-free homeowners with impeccable credit histories spanning decades. The issue is that most card providers focus heavily on income and employment status rather than assets or overall financial position. This can unfairly disadvantage retirees whose wealth sits in property and investments rather than a regular salary.
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The good news is that several cards have lower income thresholds that NZ Super (alone or combined with part-time work, investment income, or a pension) can meet.

Cards to Consider include:

American Express Airpoints Card
  • Annual fee: $0
  • Earning rate: 1 Airpoints Dollar per $100 spent
  • Why it's popular with those 60+: There is no annual fee, which means no cost if you don't use it heavily. AMEX acceptance throughout New Zealand has improved significantly in recent years, as our guide outlines, covering supermarkets, petrol stations, and most major retailers.
  • More details: Visit AMEX

Why We've Only Listed One Card
  • We've listed one because the card, for the needs of retirees, nothing else comes close.
  • The American Express Airpoints Card charges no annual fee, so you're not paying $50-$250+ each year just to hold a card you might use lightly. It accepts income sources beyond salary - New Zealand Super, pensions, investment returns (see below) - without the high thresholds that see retirees declined elsewhere, even if the applicants don't have debts and own mortgage-free homes.
  • The AMEX card lets you earn Airpoints on everyday spending rather than paying for a rewards programme you may not fully use.
  • Other cards either charge annual fees that erode value for moderate spenders, set income requirements that exclude NZ Super recipients, or both, so please be careful when selecting a credit card. 

Important - What to know about Credit Card applications if you're over 60:
  • When applying for a credit card, "income" covers more than just a salary. Card providers typically accept NZ Super, private pensions, annuities, investment dividends, rental income, and part-time earnings as qualifying income sources.
  • Unfortunately, being mortgage-free and having significant assets doesn't directly strengthen your application. Under responsible lending laws, providers must assess your ability to repay based on income rather than wealth.
  • We have heard from MoneyHub readers who have a $1.5 million home and $500,000 in investments but have been declined for a credit card, while younger applicants with no assets but earning above $60,000 a year are approved.
  • The laws that protect borrowers (as credit cards are a credit product) aren't designed to recognise the financial security that comes with decades of asset accumulation.
  • If your application is declined, you have the right to request the specific reason. Sometimes the issue is straightforward - missing information, an error in the application, or income documentation that wasn't clear.

Our View: The American Express Airpoints Card is popular with older New Zealanders - there's no annual fee, we believe it has a reasonable income requirement, and earning Airpoints on everyday spending adds up over time.

Low-Fee Investment Platforms for Lump Sums

Many New Zealanders over 60 find themselves with significant lump sums to invest - an inheritance, proceeds from selling a property, a redundancy payout, or a KiwiSaver withdrawal (for those aged 65 and over).

The question then becomes: where do you put this money without risking capital, while avoiding excessive fees from some financial advisers or fund managers?

The rise of index fund managers like Kernel Wealth and Simplicity offer professionally managed, diversified funds at a fraction of traditional costs. The difference between paying around 0.25% annually versus 1.50%+ might seem small, but on a $300,000 investment over 10 years, that's tens of thousands of dollars you'll save in fees.

Low-Fee Index Fund Managers to Consider:
Kernel Wealth
  • Fees: 0.25% p.a. on most funds
  • Minimum investment: $1
  • Fund options: Numerous Index Funds - see the full list in our Kernel Wealth review
  • PIE tax: Yes (capped at 28%)

Simplicity
  • Fees: 0.10% to 0.24% management fee (depending on the fund)
  • Minimum investment: $1
  • Fund options: Numerous Index Funds - see the full list in our Simplicity Investment Funds review
  • PIE tax: Yes (capped at 28%)

Important Considerations for Lump Sum Investing Over 60:
  • The time horizon is worth careful consideration. Money you might need within the next three to five years sits differently to money you won't touch for fifteen years.
  • Many investors over 60 have both - some funds earmarked for near-term spending (a new car, home repairs, travel) and other funds genuinely long-term. Matching your fund choice to each purpose makes sense.
  • Investing a lump sum all at once versus spreading it over several months is a personal decision. Spreading it out (also known as dollar-cost averaging) can feel less stressful if markets drop shortly after you invest, though the research generally shows lump-sum investing comes out ahead more often than not. There's no single right answer.
  • One advantage of managed funds over property or term deposits is the ability to access your money. Most funds process withdrawals within a few business days, which provides flexibility if circumstances change unexpectedly.
  • Popular platforms among older New Zealanders include Kernel, Simplicity, and InvestNow - each with different fee structures and fund options outlined in our reviews.

Expense Tracking (and Interest-Earning) to Maximise Every Dollar

Retirement income is often fixed or semi-fixed - NZ Super, perhaps a small pension, and for some, investment returns. Unlike working years, when you could earn more to cover lifestyle creep, retirement requires making every dollar work harder.
Despite the fixed nature of retirement income, surprisingly few retirees systematically track how they spend their money.

Why Expense Tracking Matters More After 60:
  • Fixed income means overspending must come from capital, which erodes your long-term position
  • Identifying unnecessary subscriptions, insurance policies, or services can free up hundreds of dollars monthly
  • Understanding your actual spending helps determine safe withdrawal rates from investments
  • Catches "lifestyle creep" that can derail even well-funded retirements

Tools and Approaches to Consider:
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Booster Savvy
  • What it is: A transactional account with the returns of a savings account and the insights of a budgeting app, including spending categorisation and insights, all in one place. Our review of Booster Savvy explains more.
  • Fees: No monthly account or card usage fees
  • Competitive Returns: On your balance - every cent earns a return from day one (no minimum balance required) - you can see the latest rate here.
  • Why it's popular with those 60+: Savvy earns a return on all your funds while the built-in automatic categorisation shows exactly where your money goes without manual tracking.
  • Full Access, No Penalties: Withdraw anytime without sacrificing your return. This flexibility is rare for accounts paying meaningful returns.
  • Stacks: Divide your money into multiple purpose-built accounts – bills, savings goals, emergency fund – each earning the same rate. Automate your financial organisation.
  • Full Transactional Functionality: Mastercard debit card (physical and digital), Apple Pay, Google Pay, automatic payments, and the ability to receive your salary directly.
  • Tax Efficiency: Structured as a PIE, taxed at your PIR (capped at 28%) – often more favourable than standard savings account tax treatment.
  • Alternatives: Our guide to budgeting apps has tools that, in a good way, force users to actively engage with their spending decisions.

What to Look For in Your Spending:
  • Subscriptions you've forgotten about (streaming services, magazines, gym memberships, insurance policies)
  • Insurance premiums that have crept up without review
  • Services you're paying for but no longer using

Our View: Tracking is more important than the tool you use. Booster Savvy works well if you want automatic categorisation without effort - we believe most people who track spending for three months discover meaningful savings they weren't aware of.

KiwiSaver Beyond 65

A common misconception is that KiwiSaver "ends" at 65 - however, it doesn't. You become eligible to withdraw your full balance at 65, but there's no requirement to do so. KiwiSaver can remain a valid investment vehicle throughout retirement, and for many New Zealanders, it works well as a fund from which to make ongoing withdrawals as needed.

Key Points About KiwiSaver After 65:
  • Your KiwiSaver balance can stay with your provider indefinitely, invested in your chosen fund. The PIE tax structure continues to apply, capping tax at 28% regardless of your marginal rate - a genuine advantage for anyone who would otherwise pay 30%, 33%, or 39% on investment returns.
  • Contributions do change after 65. You no longer receive the government contribution, and if you're still working, employer contributions become optional rather than compulsory.
  • You can still make voluntary contributions, but without the government top-up, there's less reason to prioritise KiwiSaver over other investment options.
  • You have complete withdrawal flexibility. After 65, you can take out any amount at any time - the full balance, partial withdrawals, or set up regular payments. There's no penalty for partial withdrawals, and whatever you leave behind stays invested.

Our View - KiwiSaver fund choice deserves a fresh look at 65:
  • Some providers offer "lifecycle" or "lifestages" funds that automatically shift toward conservative investments as you age. This makes sense for some people, but not everyone.
  • For example, a 65-year-old in good health who won't touch their KiwiSaver for another 15 years has a different situation from someone planning to draw it down within five years.
  • The automatic shift to conservative funds assumes everyone over 65 needs capital protection from the volatility of growth funds - but if your timeline is genuinely long-term, that conservatism can cost you in foregone returns.
  • Switching providers is free at any age, including after 65. If your current provider charges high fees or you're unhappy with how they've performed, you can move to another provider without penalty.
  • Many people assume they're locked in once they've been with a provider for years - they're not.

Our View: It's not a good idea to withdraw your KiwiSaver at 65 simply because you can. If you don't need the money immediately, leaving it invested in an appropriate fund with competitive fees is often sensible. But do check what you're paying - many people over 65 are in high-fee funds or have been automatically shifted into overly conservative options that don't match their actual timeline. Our guide to popular KiwiSaver funds has more details.

Home Equity Options (for Asset-Rich, Cash-Constrained Retirees)

There's a familiar retirement scenario in New Zealand: you own your home outright, worth between $700,000 and $2,000,000, but your actual income is NZ Super plus modest savings. On paper, you're wealthy, but in practice, you're watching every dollar because that wealth is locked in your home, not available for everyday costs.

This is the "asset-rich, cash-poor" situation, and it's increasingly common across New Zealand, as house prices have risen rapidly since the 1980s and only recently pulled back.

Several options exist to turn home equity into usable money, each with different costs and trade-offs.

Option 1: Lifetime Home (Debt-Free Equity Release)
  • Lifetime Home lets you sell a portion of your home's equity - typically up to 35% accrued over 10 years - in exchange for regular fortnightly payments.
  • On a $1,000,000 home, that works out to around $873 per fortnight ($22,700 annually after fees) for a decade.
  • You retain 65% ownership and the right to live in your home for life. There's no debt, no interest accumulating, and the costs are transparent: a 0.20% establishment fee and 0.23% annual fee.
  • The trade-off is permanent - you're giving up 35% of your home's future value, including any capital gains, in exchange for a guaranteed income stream for at least 10 years. If your home doubles in value over the next 15 years, Lifetime Home benefits from that growth alongside you. However, Lifetime Home also takes the risk (and incurs the cost) that house prices fall.
  • You’re not locked in and can sell your home at any time during the ten year period, cancelling the agreement and paying Lifetime Home the share it has accrued up to that point.
  • Lifetime Home arguably suits people who want predictable, debt-free income and can accept permanently reducing their stake in the property.

Option 2: Reverse Mortgage (Heartland Bank, SBS)
  • A reverse mortgage lets you borrow against your home's equity, taking funds as a lump sum, regular payments, or a drawdown facility you access as needed. No repayments are required until you sell, move into care, or die.
  • The catch is monthly compounding interest. Current rates sit around 8-9% p.a., compounding daily. A $100,000 loan at 9% p.a. grows to approximately $270,000 after 10 years - you've "used" $100,000 but owe $240,000. Over 15 years, that same loan exceeds $350,000.
  • Reverse mortgages suit people who need a lump sum or want flexibility, particularly those with shorter time horizons (under 8-10 years), where the compounding hasn't had as long to snowball - our guide to Reverse Mortgages explains the costs, risks and those most suitable to what is arguably an expensive retirement product.

Option 3: Downsizing
  • Selling your current home, buying somewhere smaller or less expensive, and investing the difference is always the goal of downsizing - but there are a lot of costs to be aware of. Transaction costs - real estate fees, legal fees, moving expenses - might total $60,000-$80,000 on a $1,000,000 sale.
  • That's significant, but far less than the equity you give up with Lifetime Home or the interest you accumulate with a reverse mortgage. Albeit Lifetime Home effectively offers the home owner the opportunity to downsize without having to leave the home. The home owner is selling part of their existing home, while retaining the right to live in the home for as long as they wish. 
  • The capital released depends on how much you downsize. Moving from a $1.2 million family home to an $800,000 townhouse frees up $400,000 (minus transaction costs) that can be invested to generate income or held for future needs. Equally, selling 35% under the Lifetime home model would raise $272,000 over 10 years after fees. 

Downsizing suits people whose current home is larger than they need, who are comfortable with the disruption of moving, and who want maximum capital release without ongoing arrangements or debt.

Overall, what's right for you will take a lot of consideration.
  • If staying in your home matters - and for many people it genuinely does - Lifetime Home provides more predictable costs than a reverse mortgage over longer time horizons.
  • Reverse mortgages can work for short-term needs or lump-sum requirements, but compounding interest makes them expensive over 10+ years.
  • None of these decisions should be made without professional legal advice and honest conversations with family about the implications.
  • Our detailed guides to Lifetime Home and reverse mortgages cover both options comprehensively.

Financial Advisers and Wealth Advisers

Professional advice is worth paying for in some situations and a waste of money in others. Knowing the difference can save you thousands while ensuring you get proper help when it actually matters.

When Paying for Advice Makes Sense
  • Major one-off decisions tend to justify professional input. Equity release, a large inheritance, redundancy payout, or selling a business all involve complexity and consequences that warrant spending $2,000-$5,000 on qualified advice.
  • Complex situations - multiple income sources, family trusts, assets in different countries, blended families with complicated estate planning - benefit from someone who deals with these issues regularly.
  • Emotional decisions are another case. When you're recently widowed, dealing with a health diagnosis, or simply too close to a situation to think clearly, an objective professional perspective has value beyond the technical advice.

When You Probably Don't Need to Pay
Simple investment decisions don't usually require an adviser, including:
  • Putting a modest lump sum into a low-fee diversified managed fund is straightforward - fund management firms and platforms are designed for exactly this.
  • Routine KiwiSaver choices, everyday banking decisions, choosing between savings accounts or credit cards - these don't justify advice fees. The information is freely available, and the stakes aren't high enough to warrant professional involvement.
  • Small amounts generally don't justify advice costs either. Paying $2,000 for advice on investing $20,000 rarely makes mathematical sense.

Types of Advisers
  • Fee-only financial advisers charge a flat fee or hourly rate and don't receive commissions from products they recommend. This removes the conflict of interest in which an adviser might steer you toward products that pay them more. Expect $200-$500+ per hour, or $2,000-$5,000+ for a comprehensive financial plan.
  • Commission-based advisers receive payments from the products they recommend - typically insurance products or certain investment funds. This doesn't automatically mean bad advice, but you should understand the incentive structure. Ask directly: "How do you get paid?"
  • Wealth advisers often require minimum investable assets of $250,000-$1,000,000+. They provide ongoing portfolio management with fees usually charged as a percentage of assets (0.5-1.5% annually). On a $500,000 portfolio, 1% annually is $5,000 every year - worth scrutinising what you're getting for that. 

If You Do Engage an Adviser:
Our View: Most routine financial decisions don't need paid advice. Low-fee platforms and freely available information have made sensible DIY investing accessible to anyone willing to do basic research.

But for genuinely complex or high-stakes decisions - equity release, large inheritances, complicated tax situations - paying for quality advice can save multiples of the fee in avoided mistakes. The key is matching what you pay to the scale and complexity of what you're deciding.

Products and Approaches to Consider Avoiding During Retirement

Not every financial product marketed to those over 60 delivers value - some are expensive solutions to problems that don't exist, while others rely on fear rather than logic. Here are six to consider approaching with caution:

Funeral Insurance

  • Premiums often exceed the payout. A 65-year-old paying $50/month for 20 years pays over $12,000 for a $10,000 policy.
  • A dedicated savings account arguably does the same job, earns interest, and stays in your estate if unused.
  • Our guide to funeral insurance explains more.

Health Insurance Over 65

  • Premiums escalate dramatically with age - $300/month at 60 can become $800+ at 75, and over a 20-year retirement, that's $100,000-$150,000 in premiums.
  • The public system covers emergencies and cancer treatment regardless. For some, setting aside $50,000-$100,000 to self-insure makes more sense than decades of rising premiums - our guide to comparing health insurance weighs up the options.​​​

Buying a Rental Property

High-Fee Managed Funds

  • Funds charging 1.5-2.5% annually face a significant headwind - most underperform low-fee index funds over time - on $300,000, the difference between 0.25% and 1.5% fees is $3,750 annually.
  • Over 15 years, that's tens of thousands of dollars. Low-fee options from Kernel, Simplicity, or via InvestNow capture market returns without the drag.

Ongoing Financial Support to Adult Children

  • This one's uncomfortable, but it belongs on the list. Paying for adult children's holidays, cars, subscriptions, or bailing them out repeatedly can drain retirement savings faster than almost anything else.
  • A $100,000 "loan" for a house deposit that's never repaid, plus $500/month in various help, adds up to serious money over a decade.
  • Our guide to supporting adult children covers this in detail - but the short version is simple - if your support has no end date and no boundaries, it's a risk to your retirement.

Life Insurance You No Longer Need

  • Life insurance protects dependents from lost income. If your children are independent and your spouse would manage on NZ Super plus assets, ask who the payout is actually for.
  • Premiums at 65+ can run $200-$400/month for meaningful cover - money that might be better spent or saved. There are exceptions (dependent adults, estate equalisation), but many policies continue out of habit rather than need. Our guide to life insurance explains more.

Concluding Comments

The financial products that work well for a 35-year-old building a career rarely suit a 65-year-old managing retirement. Yet much of the financial industry still treats everyone the same, applying income-based criteria that penalise retirees and pushing products designed for wealth accumulation rather than wealth preservation and drawdown.

The products outlined in this guide share common traits - low fees, flexibility, and structures that recognise the realities of retirement income. None require large minimum investments or ongoing adviser relationships. All can be researched and accessed directly.

What works for you depends on your circumstances - your health, your housing situation, your family, and how long your money needs to last. A healthy 62-year-old planning to work part-time for another decade has different needs from a 78-year-old funding aged care. There's no single answer.

If there's one takeaway, it's this - don't accept products or arrangements simply because they've always been that way. Review what you're paying, question whether you still need it, and compare alternatives. The savings from switching a high-fee fund, cancelling unnecessary insurance, or renegotiating bank accounts can fund a holiday or a year of better living - and that's the point of managing money well in retirement.
Home Equity and Housing
KiwiSaver and Retirement Income ​
Investing and Platforms
​Savings and Budgeting
​Insurance
Credit Cards
Financial Advice
Family and Life Decisions