Will My Parents Be Able to Afford to Retire?

If you are worried your parents may not be able to afford retirement, the first step is to start a gentle conversation. Understanding their income, housing, cashflow, KiwiSaver, savings and care needs can help your family plan ahead with more clarity and less fear.

It’s a question more and more Kiwis are quietly asking themselves - will my parents actually be able to afford to retire?

We’re starting to have subtle, uneasy conversations around the dinner table, in group chats, or while helping Mum and Dad set up their online banking. Many adult children are realizing that their parents’ financial reality may not be as secure as they once thought. 

The Pension Reality Check

As one listener put it: “I’m pretty confident there’s not going to be a pension there for me when I get there.”

And they’re right to be cautious. New Zealand Superannuation may not stretch as far in the future, and that’s exactly why KiwiSaver was introduced - to help us build an additional safety net for retirement.

But what about those already approaching retirement age now?

When Kids Start Worrying About Their Parents

In my work, I’m seeing a growing number of clients - adult children in their 30s, 40s, and 50s - who are quietly concerned about their parents’ financial wellbeing. They’re asking:

      •     Do Mum and Dad have enough to retire comfortably?

      •     Will they need to sell the family home?

      •     What happens if one of them needs care?

These aren’t easy conversations. Money has always been a sensitive subject, especially between generations. But avoiding them doesn’t make the problem go away — it just pushes it down the road.

The Foundation Nobody Wants to Talk About

Cash flow and budgeting.

It’s not glamorous. It’s not exciting. But it’s the foundation of every solid financial plan - for both parents and children.

Understanding where the money goes, and making conscious choices about spending and saving, gives families control and confidence. It opens the door to better decisions about KiwiSaver, investments, and even how to support each other when times get tough. 

Facing the Fear

I don’t believe most Kiwis are overestimating how well-off they are.

I believe many are simply too scared to look.

Because once you open that bank statement, run the numbers, or face what retirement might actually cost - it can feel overwhelming.

But here’s the thing: once you face it, you can fix it.

Opening the Conversation

So how do we begin? Start small. Ask gentle, open-ended questions like:

      •     “How are you feeling about retirement?”

      •     “Do you think your income will cover what you want to do?”

      •     “Would you like me to help you check your KiwiSaver fund or budget?”

These conversations can uncover not just financial gaps, but also emotional needs - security, independence, and peace of mind.

The Bottom Line

We can’t rely solely on the pension. We need to plan, talk, and take action - both for ourselves and for our parents.

If you’ve been wondering about your family’s financial future, maybe it’s time to have that conversation. It’s not about blame or fear - it’s about creating freedom and choice for the people we love most.

Frequently Asked Questions

How do I know if my parents can afford to retire?

Start by understanding their expected income, housing costs, debt, savings, KiwiSaver, pension entitlements and likely care needs. A clear picture makes it easier to see whether there may be a shortfall.

How do I talk to my parents about money?

Start gently. Ask how they are feeling about retirement, whether they feel prepared and whether they would like help looking at their budget, KiwiSaver or future plans.

What if my parents do not have enough for retirement?

If your parents may not have enough, the earlier you look at the numbers, the more options you may have. This could include adjusting spending, reviewing housing choices, planning support, or getting financial advice.

Ready to feel clearer about your next money move?

Book a free 15 minute chat with Levridge and find out whether a financial plan could help you move forward with more confidence.