Retirement Income Sufficiency: A Comparison Study in Australia and New Zealand

Xiaobo Xu, Martin Young, Liping Zou () and Jiali Fang
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Xiaobo Xu: School of Economics and Management (School of Tourism), Dalian University, Dalian 116000, China
Martin Young: School of Economics and Finance, Massey University, Palmerston North 4442, New Zealand
Liping Zou: School of Economics and Finance, Massey University, Auckland 0745, New Zealand
Jiali Fang: School of Economics and Finance, Massey University, Auckland 0745, New Zealand

JRFM, 2023, vol. 16, issue 2, 1-38

Abstract: We use the 2018 survey data from the Household, Income, and Labour Dynamic (HILDA) in Australia and the Household Economic Survey (HES) in New Zealand to investigate the retirement income sufficiency in Australia and New Zealand. Our baseline results indicate that the annuitized net wealth is greater for Australian retirees than for New Zealand retirees. However, New Zealand retirees enjoy a higher level of life satisfaction than Australian retirees. Further analysis reveals a significant greater pre- and postretirement income for the top 10% of wealthy Australian retirees, mainly due to the higher level of homeownership in Australia within this group. Our study fills the gap in the existing literature, which studies the macro- and microlevel influences on Australia and New Zealand retirees, and it also offers important policy implications.

Keywords: Australia; New Zealand; retiree; retirement planning; income sufficiency; Blinder–Oaxaca decomposition; demographic traits; individual financial positions; government pension system (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
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