A study by the Westpac Massey Fin-Ed Centre has shown that most young people expect there to be big changes to super by the time they retire.

Almost 85% said they expected the age of eligibility to be higher by the time they hit 65. Sixty-three per cent of respondents also believe the benefit will eventually be means tested.

“The truth is it’s not sustainable for NZ Super to be available at 65. The government needs to move sooner, rather than later because the longer they leave it, the harder it is going to be. With enough time, the age of eligibility can be raised gradually, which lessens the impact on everyone,” report co-author Claire Matthews said.

The survey also found that over 43% of respondents were dissatisfied with their current financial status, which had increased from 40% in 2014 and 30% in 2012.

Matthews said advisers should talk to their clients about the possibility for changes to superannuation over coming years.

“How changes will impact on a particular client depends on their age.  There are different approaches to dealing with it.  An adviser may simply choose to go with a client’s expectations in developing their financial plan, although I would expect the adviser to provide advice in relation to the reasonableness of those expectations.”

She said financial plans could be developed for worst-case scenarios. “If the reality is better, then the client will be better off. These approaches all have pros and cons, but the key is that advisers must be having the conversations with their clients, so their clients are making informed decisions – and I’m sure that is happening.”