The NZ Retirement Expenditure Guidelines (REGs), developed and revised annually by Massey University’s Fin-Ed Centre, are a useful resource for financial service providers. They share valuable insights into the broad spending patterns of Kiwi seniors, from city-dwellers who like to splurge every now and then to those in the provinces who get by with few extras.

Financial advisers will know that the REGs aren’t some “one-size-fits-all” rulebook, with each client fitting neatly into a prescribed spending pattern. However, the guidelines do help kick off important conversations and provide a framework for personalised plans.

We’ve pulled together five key ways that financial advisers are leveraging the REGs to help deliver real value to their clients.

1. Kickstart a conversation about retirement dreams…and how to get there.

Many financial advice clients haven’t thought about budgeting in years, so the REGs can be a handy way to break the ice and provide a powerful starting point for meaningful, personal conversations about retirement.

Some advisers drill into the figures behind the ‘no frills’ and ‘choices’ assumptions to get their clients talking about their vision for life after work: “Does this look about right? Want to add a golf membership, overseas trips, more brunches with the grandkids?”

In this way, the REGs offer a solid base to build on and can make budgeting feels less like homework and more like mapping out a dream. The goal isn’t to force clients into a cookie-cutter budget, but to help them personalise their plans based on real aspirations, understand trade-offs, and prepare for rising costs over time. The result? A clearer picture of what they’ll need, and how their savings and assets can support the life they really want.

2. Help senior clients switch from saving to spending

One of the biggest struggles for retirees isn’t just saving enough, it’s actually spending it. Clients worry they’ll run out of money, even when their plan says they’re fine. This “fear of running out” can mean they underspend in their early years, living like students when they could be sipping cocktails in Fiji.

The REGs give advisers a solid framework to show clients, in black and white, that they can afford to enjoy themselves. This is also where drawdown funds, like Lifetime Income, are worth their weight in gold by taking the stress and guesswork out of generating a long-term, sustainable retirement income.

3. Encourage younger clients to start early

Let’s be honest, most twenty and thirtysomethings aren’t lying awake thinking about retirement. But the REGs can be a wake-up call, showing clients a clear (and slightly sobering) picture: this is what life costs when you’re not working.

Advisers are using the REGs to show young clients what a good retirement might actually cost, and what they’ll need to get there, helping to connect today’s decisions to future goals. It’s a powerful way to shift the conversation from "I’ll deal with that later" to "let’s start planning now."

4. Highlight the potential housing gap

Many of today’s retirees are mortgage-free. Future retirees? Maybe not. Because the REGs don't fully reflect what retirement looks like with ongoing housing costs (yet), advisers are filling in the gaps and helping clients think ahead: will they own outright, or will they still be paying rent or a mortgage at 65? If they’re not on track for mortgage freedom, they’ll need help planning for those extra costs now rather than getting blindsided later.

Meanwhile, for older clients who might have a mortgage-free home but little else saved, home equity release products like reverse mortgages and debt-free alternative Lifetime Home could be the difference between struggling to make ends meet and a comfortable, choice-filled retirement.

5. Keep the change

Advisers are the first to understand that retirement planning isn't a "set and forget" process. Life changes. Markets change. Costs change. And the REGs change every year too, reflecting how retirees’ spending patterns have evolved to suit the wider economic and social environment. By referring to the most up-to-date REGs at annual reviews, advisers can help clients stick to their plan and stay on track to live their best life in retirement.

This article is for information purposes only and should not be considered financial advice.