Latest news with #Centrix
1News
5 days ago
- Business
- 1News
With falling house prices, fewer retirees can rely on their home as a nest egg
Retirement is beginning to look very different for Kiwis, with growing numbers still renting, paying a mortage, or owning a home of decreasing value. Claire Dale reports. Changes to KiwiSaver, global economic uncertainty and predictions house prices could drop by as much as 20% by 2030 all mean retirement is looking very different to how it once did. A retirement strategy based on the equity held in a house is no longer as reliable as it has been in the past. Home ownership in Aotearoa New Zealand fell from 75% in 1991 to 60% in 2023 and is projected to fall to 48% in 2048. The average age of a first-home buyer has also risen to 36, meaning an increasing number of New Zealanders (13%) are paying off their mortgages after they reach retirement age. Renting into retirement is becoming a new normal. (Source: ADVERTISEMENT The number of retirees renting is also on the rise. By 2048, 40% of them will rent, placing pressure on New Zealand's housing stock. KiwiSaver is unlikely to replace the traditional housing nest egg. New Zealanders have, on average, NZ$37,079 in their KiwiSaver accounts, with thousands of people reaching close to retirement age with less than $10,000 saved. Investing at the price peak The prospect of retirement looks bleakest for those currently aged between 35 and 49 years old. A recent report from credit agency Centrix found this group was struggling the most financially. The 35-49-year-old age group tends to struggle financially. (Source: A big part of the problem is that house prices skyrocketed just as they became first-time home buyers. The average asking price for residential property rose by 60.3% over the past decade, from $556,931 at the beginning of 2015 to $892,579 at the end of 2024. While incomes have also increased, they have not matched housing prices. In 2000, houses cost about five times the median household income. But by 2025, the median price had risen to 7.5 times the median household income. ADVERTISEMENT Those who bought their first home around the peak in 2021 are likely to be hit hardest by the forecast drop in house values. According to data insight firm Cotality (formerly Corelogic), nominal prices are expected to pass their 2021 peak by mid-2029. But when adjusted for inflation, prices in mid-2030 would be a fifth below the peak. Working into retirement Older New Zealanders are also facing significant housing pressures. According to a 2022 report from Treasury, over half of superannuitants still paying off mortgages spent more than 80% of their superannuation income on housing costs. Those who are mortgage-free are spending less than 20% of their super on housing. Between 2019 and 2024, the percentage of overdue mortgages for the 50+ age groups ranged between 2% and 2.5%, compared to a range of 1% to 1.5% for all mortgages. People between the age of 55 and 64 are likely to have purchased their homes in the late 1990s and early 2000s, so are less likely to be hurt by the 2021 peak and subsequent trough. Despite this apparent advantage, only 38% of people between 55 and 64 are mortgage free. ADVERTISEMENT The morning's headlines in 90 seconds, including an Auckland teen seriously ill in Vietnam, Trump slams supporters, and Icelandic volcano prompts evacuations. (Source: 1News) KiwiSaver issues The possibility of using accumulated KiwiSaver funds to clear a mortgage is also diminishing. As a result of the 2025 Budget changes to KiwiSaver, employee and employer contributions will rise from April 2026 to 3.5% and from April 2028 to 4%, offsetting the reduced annual government contribution. The end of employer contributions matters particularly to the 24% of those aged over 65 years who are still in the workforce. A rule change in 2021 means employers are not required to make contributions or to deduct employee contributions, unless the employee continues to make KiwiSaver contributions. But current global crises are affecting KiwiSaver returns. Uncertain and volatile markets, especially for actively managed funds, mean fund managers reallocate money to try to minimise losses. Not all their bets pay off. By 2030, Stats NZ projects that approximately 265,000 people aged 65 and over will be in the workforce. Half of those in their sixties are employed in New Zealand. (Source: ADVERTISEMENT The Office for Seniors notes that although older workers have challenges finding and staying in paid work, a third of the workforce is aged over 50 and 50% of people aged 60 to 69 are employed. Importantly, as the Retirement Commission research found, a third of people over 65 were not working by choice. An increasing number, who neither own their home nor have significant retirement savings, have to continue working past 65 because they need the money to eat and pay the bills. As New Zealand's population ages, and more seniors have to work to pay for the essentials, it's clear retirement is going to look different. Betting on the value of a house to fund life after 65 is less certain than it used to be. More than ever, New Zealanders need to consider how they will live well in their later years. Claire Dale is a research fellow at the Pensions and Intergenerational Equity (PIE) research hub, University of Auckland, Waipapa Taumata Rau. This article is republished from The Conversation under a Creative Commons licence.
RNZ News
6 days ago
- Business
- RNZ News
As house prices drop, will the retirement nest egg still be such a safe bet?
By Claire Dale* of Photo: RNZ Changes to KiwiSaver , global economic uncertainty and predictions house prices could drop by as much as 20 percent by 2030 all mean retirement is looking very different to how it once did. A retirement strategy based on the equity held in a house is no longer as reliable as it has been in the past. Home ownership in Aotearoa New Zealand fell from 75 percent in 1991 to 60 percent in 2023 and is projected to fall to 48 percent in 2048. The average age of a first-home buyer has also risen to 36, meaning an increasing number of New Zealanders (13 percent) are paying off their mortgages after they reach retirement age. The number of retirees renting is also on the rise. By 2048, 40 percent of them will rent, placing pressure on New Zealand's housing stock. KiwiSaver is unlikely to replace the traditional housing nest egg. New Zealanders have, on average, $37,079 in their KiwiSaver accounts , with thousands of people reaching close to retirement age with less than $10,000 saved. The prospect of retirement looks bleakest for those currently aged between 35 and 49 years old. A recent report from credit agency Centrix found this group was struggling the most financially. A big part of the problem is that house prices skyrocketed just as they became first-time home buyers. The average asking price for residential property rose by 60.3 percent over the past decade, from $556,931 at the beginning of 2015 to $892,579 at the end of 2024. While incomes have also increased, they have not matched housing prices. In 2000, houses cost about five times the median household income. But by 2025, the median price had risen to 7.5 times the median household income. Those who bought their first home around the peak in 2021 are likely to be hit hardest by the forecast drop in house values. According to data insight firm Cotality (formerly Corelogic), nominal prices are expected to pass their 2021 peak by mid-2029. But when adjusted for inflation, prices in mid-2030 would be a fifth below the peak. Older New Zealanders are also facing significant housing pressures. According to a 2022 report from Treasury , over half of superannuitants still paying off mortgages spent more than 80 percent of their superannuation income on housing costs. Those who are mortgage-free are spending less than 20 percent of their super on housing. Between 2019 and 2024, the percentage of overdue mortgages for the 50+ age groups ranged between 2 percent and 2.5 percent, compared to a range of 1 percent to 1.5 percent for all mortgages. People between the age of 55 and 64 are likely to have purchased their homes in the late 1990s and early 2000s, so are less likely to be hurt by the 2021 peak and subsequent trough. Despite this apparent advantage, only 38 percent of people between 55 and 64 are mortgage free . The possibility of using accumulated KiwiSaver funds to clear a mortgage is also diminishing. As a result of the 2025 Budget changes to KiwiSaver, employee and employer contributions will rise from April 2026 to 3.5 percent and from April 2028 to 4 percent, offsetting the reduced annual government contribution. The end of employer contributions matters particularly to the 24 percent of those aged over 65 years who are still in the workforce. A rule change in 2021 means employers are not required to make contributions or to deduct employee contributions, unless the employee continues to make KiwiSaver contributions. But current global crises are affecting KiwiSaver returns. Uncertain and volatile markets, especially for actively managed funds, mean fund managers reallocate money to try to minimise losses. Not all their bets pay off. By 2030, Stats NZ projects that approximately 265,000 people aged 65 and over will be in the workforce. The Office for Seniors notes that although older workers have challenges finding and staying in paid work, a third of the workforce is aged over 50 and 50 percent of people aged 60 to 69 are employed. Importantly, as the Retirement Commission research found, a third of people over 65 were not working by choice. An increasing number , who neither own their home nor have significant retirement savings, have to continue working past 65 because they need the money to eat and pay the bills. As New Zealand's population ages, and more seniors have to work to pay for the essentials, it's clear retirement is going to look different. Betting on the value of a house to fund life after 65 is less certain than it used to be. More than ever, New Zealanders need to consider how they will live well in their later years. * Claire Dale is a research fellow at the Pensions and Intergenerational Equity (PIE) research hub, University of Auckland, Waipapa Taumata Rau * This story was first published on The Conversation .
Scoop
15-07-2025
- Business
- Scoop
Cash(Flow) Is King And Bizzy Aims To Fix It!
A group of four seasoned tech and finance founders has launched Bizzy, New Zealand's first unified online marketplace for business lending aimed squarely at helping SMEs bridge cashflow gaps, fund expansion and navigate finance with confidence. The free-to-use platform enables small business owners to submit one simple application and compare multiple finance offers from a growing panel of trusted lenders (currently eight). The application process is fast, transparent and designed specifically for business use cases - from short-term working capital to long-term growth investment. "Running a business is hard enough. Getting finance shouldn't be," says co-founder Corinna Stukan, who has worked with hundreds of small businesses across New Zealand and previously built a cashflow insights tool launched through ASB in NZ and Commonwealth Bank in Australia for SMEs. 'What I kept hearing was: 'I don't know where to go, I don't understand the terms and I don't have time to fill out five different applications.' We built Bizzy to solve that,' she adds. The problem: cashflow keeps businesses awake Cashflow remains the biggest operational challenge for New Zealand's 530,000 small businesses. According to data from Centrix, business lending demand is up 6% (YoY March 2024 compared to March 2025), yet access remains a hurdle. According to the Global OECD Report on Financing SMEs and Entrepreneurs, 23.90% of NZ small businesses sought external funding for survival. What's more, 43.5% of NZ small businesses sought funding for growth and many owners still dip into personal savings or face weeks of paperwork just to get a basic finance offer. 'Small businesses don't just need cash when things are tough - they need it to seize opportunities. Even the Government's Investment Boost policy, for example, requires working capital for the purchase of assets,' Stukan says. 'But traditional lending is still designed for big companies with time, teams and financial firepower.' The solution: one application, multiple offers, no hidden fees Bizzy connects SMEs with lenders such as FundTap, Line Capital, Lock Finance, Quadrent, Prospa and more to provide real-time offers that are easy to compare. The platform shows clear summaries of fees and terms, with no credit score impact for initial applications allowing business owners to see and compare their funding options before making a decision. Behind the platform are co-founders and directors Corinna Stukan, Tammy Crause, Nick O'Connor and Mike Burke who have deep combined experience across fintech, lending and SME strategy. This includes working with companies such as Westpac, ASB, CBA, digital business financial provider Emerge and Fox Group. 'We worked closely with lenders on how we display offers so there's no fine print and no surprises. You see what you're getting upfront and what you're paying for across a variety of scenarios and types of lending," says Stukan. Built-in smarts for business owners Bizzy also includes intelligent filters to help business owners find the right type of funding - whether it's bridging a short-term gap, financing assets or unlocking working capital for expansion. 'It's about providing better transparency and choice. There are many great funding options and customer centric lenders in NZ that SMEs are often not aware of - our mission is to bring those together in one place,' explains Stukan. Bizzy has ambitious plans to become the go-to starting point for small business lending comparisons in New Zealand inspired by successful marketplaces seen in the UK, US and Asia. 'The goal is simple: use technology to take the stress and uncertainty out of small business finance. Cash(flow) really is king and with the right tech, we can give small business owners transparency, choice and a faster path to capital,' concludes Stukan.
Techday NZ
15-07-2025
- Business
- Techday NZ
Bizzy launches NZ platform to simplify SME lending comparisons
Bizzy has launched an online marketplace that allows small businesses in New Zealand to compare multiple lending options through a single application. Addressing SME finance needs The new platform aims to support the country's more than 530,000 small and medium-sized businesses, targeting key challenges related to cashflow and access to funding. Bizzy is designed as a free-to-use tool where business owners submit one application and receive offers from a panel of eight established lenders. The process is intended to be swift, transparent, and specifically tailored to business finance requirements, allowing applications for both short-term working capital and long-term investment needs. Co-founder Corinna Stukan, who has significant experience working with small businesses in New Zealand and has previously developed business finance tools for banks, outlined the motivation behind Bizzy's creation. "Running a business is hard enough. Getting finance shouldn't be. What I kept hearing was: 'I don't know where to go, I don't understand the terms and I don't have time to fill out five different applications.' We built Bizzy to solve that," she stated. Ongoing challenges for small enterprises Recent data from Centrix indicates business lending demand in New Zealand increased by 6% year-on-year as of March 2025. However, access to funding remains a persistent issue. The Global OECD Report on Financing SMEs and Entrepreneurs highlights that 23.90% of small businesses in the country sought external finance for survival. At the same time, 43.5% actively sought funding for growth, with many owners resorting to personal savings or going through lengthy application processes to secure finance. Commenting on these trends, Stukan said, "Small businesses don't just need cash when things are tough - they need it to seize opportunities. Even the Government's Investment Boost policy, for example, requires working capital for the purchase of assets," Stukan added, "But traditional lending is still designed for big companies with time, teams and financial firepower." Marketplace solution and transparency Bizzy connects small businesses with lenders including FundTap, Line Capital, Lock Finance, Quadrent, and Prospa, providing real-time, easily comparable funding offers. The platform sets out clear summaries of fees and terms, with no impact on the applicant's credit score for initial offers, giving owners the opportunity to assess their choices before proceeding. The company's four co-founders - Corinna Stukan, Tammy Crause, Nick O'Connor and Mike Burke - bring backgrounds in fintech, lending, and small business strategy, with experience spanning financial institutions such as Westpac, ASB, CBA, Emerge and Fox Group. Stukan emphasised Bizzy's focus on clarity and customer experience. "We worked closely with lenders on how we display offers so there's no fine print and no surprises. You see what you're getting upfront and what you're paying for across a variety of scenarios and types of lending," she said. Tools for funding decisions The platform features intelligent filters, helping business owners identify the most suitable funding product for their particular context, whether for bridging short-term shortfalls, asset financing, or unlocking capital for growth. Stukan explained, "It's about providing better transparency and choice. There are many great funding options and customer centric lenders in NZ that SMEs are often not aware of - our mission is to bring those together in one place," she said. Bizzy is aiming to replicate the success of lending marketplaces seen internationally, positioning itself as a starting point for small business lending comparisons in New Zealand. Stukan described the company's overall ambition, saying, "The goal is simple: use technology to take the stress and uncertainty out of small business finance. Cash(flow) really is king and with the right tech, we can give small business owners transparency, choice and a faster path to capital," she concluded.
Scoop
03-07-2025
- Business
- Scoop
Tātau Tātau O Te Wairoa Calls For Urgent Government Investment Following Alarming Arrears Statistics
Following the release of the June Credit Indicator by Centrix showing Wairoa has the highest rate of people in arrears across Aotearoa – a staggering 18.3% – Tātau Tātau o Te Wairoa is calling on the government to urgently step up investment in housing for the region, saying current efforts are not meeting the scale of need. 'The statistics are shocking, but they're not surprising. Wairoa locals are under intense pressure—crippled by high living costs, low incomes, overcrowded housing, and the long tail of climate disasters. The fact that nearly one in five people here are in arrears is a symptom of systemic failure, not personal irresponsibility,' says Lewis Ratapu, Chief Executive Officer of Tātau Tātau o Te Wairoa. Ratapu says the Centrix data reflects what people in Wairoa are living every day. 'Our own research shows we need at least 420 homes to meet current demand and recover from the devastation of Cyclone Gabrielle and the 2024 floods. Over 57 whānau are still living in temporary accommodation, and many others are in old, inadequate homes—80% of our housing stock was built before 1980, and more than a third are damp. It's not just housing, our unemployment rate is over 9.9%, more than twice the national average, and household incomes are 36% lower. These aren't just numbers—they're daily struggles for our whānau, and they demand urgent, targeted investment in locally-led housing and economic development.' Tātau Tātau's flagship development, Te Rauā, is an excellent example of what's possible when iwi, local contractors, and central government work together. When complete, the development will deliver 43 warm, modern homes—including kaumātua units and large whānau homes. "Many of the whānau applying are coming from overcrowded situations, temporary housing, or returning to Wairoa after being displaced by the floods,' said Ratapu. 'Te Rauā represents stability and a step toward long-term wellbeing.' Importantly, through the Te Rauā Affordable Rental Grant, those eligible pay just 80% of market rent—a critical lifeline for those struggling under the weight of inflation, debt, and inadequate housing. Local employment has also been prioritised. Contractors including PCS Projects, Platinum Homes and Iconiq Construction have subcontracted to local electricians, landscapers and builders, a testament to Tātau Tātau's commitment to Wairoa's skilled workforce. Beyond housing, Tātau Tātau's commitment to regional transformation includes Haumako, the iwi's horticultural arm and a subsidiary of E Tipu. With 70 hectares of orchards and crop fields under development, the project is expected to create 60 seasonal jobs by 2027 and currently employs 17 full-time orchard staff, including cadets. 'We're investing in long-term employment and resilience—housing is one piece of the puzzle, but economic opportunity is the other,' says Ratapu. 'The government must back communities like Wairoa that are already building solutions.' Haumako prioritises hiring and upskilling locals, especially rangatahi, with long-term plans for water storage, coolstores and post-harvest processing to support expansion and full regional value-chain employment. Tātau Tātau is urging the government to expand its investment in proven, community-led solutions like Te Rauā and Haumako—initiatives that are already lifting outcomes for whānau, creating jobs, and restoring pride in the region. 'We've shown what can be achieved when local knowledge and national support come together. Now we need the Government to walk alongside us, so we can scale these solutions to meet the real scale of the challenge,' says Ratapu.
