By Cam Harper*
For decades, the focus has been on building our retirement savings. But when the regular pay cheque stops, that focus shifts to how those savings can help fund the retirement we've worked towards.
New Zealanders may already be thinking differently about this stage of their financial lives.
The Financial Markets Authority's 2026 KiwiSaver Annual Report, released in September, found that fewer members are withdrawing their full KiwiSaver balance after turning 65, with more appearing to leave at least some of their savings invested.
It suggests retirement need not be the end of someone's investment journey. Our savings may still need to work for many years after our paid work ends.
The important distinction is between simply leaving money invested and having a plan for how those investments will support your retirement.
Putting your savings to work in retirement
During our working years, we get used to receiving a regular salary and setting some of it aside. Retirement changes that arrangement. NZ Super provides a foundation for those eligible, but savings and investments may need to help cover costs previously met by employment income.
Those costs could be everyday essentials, travel or the activities people have been looking forward to enjoying in retirement.
It's equally important to keep some money readily accessible, as a major home repair, an unexpected expense or a change in personal circumstances can quickly alter what you need from your savings.
Investments work in different ways. Some are designed primarily for growth, while others provide income through regular interest payments or distributions. During retirement, the timing of those payments and access to your capital can matter as much as the potential return.
Monthly interest payments, for example, may help supplement regular retirement income, while an investment that compounds its returns may be more appropriate for money you don't expect to need for some time.
Both approaches have their place. The question is what combination of income, growth and access to funds matches your circumstances and plans.
Where property-backed investing can fit
One option worth understanding is property-backed lending. At Southern Cross Partners, we offer investors the opportunity to earn interest from individual loans secured by first mortgages over New Zealand property.
A distinguishing feature of our approach is investor choice. Rather than being automatically allocated across a portfolio, investors choose which loans they want to invest in. Our Investor Portal outlines the interest rate, anticipated term and property securing each loan, so investors can decide what suits their circumstances.
Many of our investments pay interest monthly. For someone planning their retirement cash flow, knowing when interest is expected to be paid may be useful, although payments aren't guaranteed and depend on the borrower meeting their obligations.
Having worked in specialist property lending for nearly 30 years, Southern Cross Partners understands the importance of helping investors make informed decisions. Our lending team assesses each loan before it is made available to investors, and we typically provide the initial funding ourselves. Our team is also available to explain how the investment process works.
Property-backed lending may suit investors who are comfortable committing a portion of their savings for the life of a loan, although it won't be appropriate for money they may need at short notice. First-mortgage security does not remove the risk of delayed repayments or loss of capital. As with any investment, decisions should reflect personal circumstances, financial goals, timeframe and risk appetite.
Making room to enjoy retirement
After years spent building retirement savings, deciding how to use them can take some adjustment. With that money potentially needing to last for decades, understanding the income it could provide can make it easier to plan for the years ahead.
For some, part of their savings will be invested for future growth, while for others, regular investment income could help meet living costs or fund things they enjoy. For many, it will be a balance of both, with cash available for the unexpected.
The right mix will be different for everyone, and independent financial advice can help people assess the options available. The goal is to make your savings work in a way that supports the retirement you have planned.
To learn more about Southern Cross Partners and how property-secured investments could contribute to your retirement income, visit www.southerncrosspartners.co.nz.
Disclaimer: All investment opportunities are subject to change and availability. Southern Cross Partners Ltd is licensed to provide peer-to-peer lending services under the Financial Markets Conduct Act 2013. This article is general in nature only and does not take into account any person’s objectives, financial situation or needs. We recommend speaking with a financial adviser before making any investment decision.
About Cam Harper: As Managing Partner of Southern Cross Partners, Cam Harper leads both the lending and investing sides of the business. He is passionate about helping New Zealanders understand secured investment opportunities and the role property-backed lending can play in a wider investment portfolio.