‘Don’t give up on home ownership’: Pacific adviser urges families to think long-term

Many young Pacific people are no longer thinking about retirement or buying a home because they are too focused on surviving week to week, a Pacific financial adviser says.

New figures from the Retirement Commission show average KiwiSaver balances rose 11.3 per cent in 2025 to $41,286.

The report found KiwiSaver is working well for most people in steady paid work, with 90 per cent of New Zealanders earning more than $50,000 contributing to the scheme.

But Elle Wuthrich says many Pacific families are struggling to think long-term while dealing with daily financial pressure.

“The young people these days, especially those on the lower wages, aren't really thinking about that,” she tells PMN News. “They're just thinking about ‘how do I survive to next week’.”

Wuthrich says the sharp drop in Pacific home ownership is changing how younger generations see their future.

Listen to Elle Wuthrich's full interview below.

In 1986, 51 per cent of Pacific households owned their homes. By 2023, that number had dropped to 20 per cent.

Wuthrich says her own experience growing up was very different.

“My parents came from the islands and they had nothing. I watched them get a home, pay it off, and this was back in the 90s when interest rates were in the 20 per cent range,” she says. “For me growing up, home ownership was a very normal and achievable thing.”

She says many Pacific clients feel owning a home is impossible. “A lot of people are like, ‘Why should I care? I will never own a home,’” she says. “And I have to coach a lot of people out of that thinking.”

The latest Inland Revenue figures also show hardship withdrawals from KiwiSaver rising. More than 5600 people withdrew money from their KiwiSaver accounts for hardship reasons in March, up from 4750 the previous month.

Wuthrich says she is seeing more Pacific families dipping into retirement savings to cover urgent costs, including funerals, overseas travel, and medical treatment.

One client recently withdrew money after her grandfather died overseas.

“She’s taking money out of her KiwiSaver to go overseas, spend time with him, and it will potentially go towards funeral costs,” Wuthrich said.

Women are also falling behind financially. The Retirement Commission report shows women have KiwiSaver balances that are on average 24 per cent lower than men, a gap of about $9240.

Wuthrich says Pacific women often face even greater pressure because many step away from work to care for children or elderly family members.

“A lot of women end up taking time out of the workforce to have children, but also in our culture, it's quite common for us to take time out to look after elderly parents,” she says. “We actually have to invest and be more aggressive and go even harder than the men.”

Stats NZ figures show the average annual disposable household income for Pacific households in the year to June 2025 was $51,483, compared with $67,585 for European households.

Professor Ngaire Kerse, director of the Centre for Co-Created Ageing Research, says retirement savings remain especially important for low-income New Zealanders.

“About 40 per cent of older New Zealanders have no other income in retirement and women are more likely to be in this group,” Kerse said in a statement.

“Māori and Pacific people already receive less from Superannuation, because their life expectancy is lower.”

Home ownership helps to build generational wealth, and security for retirement. Photo/Supplied/Kainga Ora

Wuthrich believes better financial education through churches, schools, and community groups could help more Pacific families build long-term wealth.

She says home ownership remains one of the strongest pathways to financial security for future generations.