Matthews says greater certainty means people will be able to plan better and hopefully save more.

But she admits future retirees are likely to rely more on the government's accommodation supplement.

"It is reasonable to suggest you could see much greater use of that. At least in the short term and possibly the medium term."

Matthews says it's hard to find out exactly how much the supplement is and who is eligible.

"But it is reasonable to suggest that it won't cover rent in Auckland or even in Wellington. So it's not just an Auckland problem."

She says people need to look at the choices they are making.

"Where are they living, can they move to an area with lower rent? It is not straightforward. You have got to look at everything you are doing and say how important is this?

"To what extent do they want to live well now and to hell with retirement? Or scrimp and save now and then have a great retirement?

"The answer is different for everybody," says Matthews, but people need to actively think about these things and she is not sure they are doing that right now.

Wellington financial adviser Liz Koh says the end goal should still be the same: a debt-free home and a pot of money by the time you retire.

"It is just about how you get to that goal."

Koh says one option is to buy a property you won't live in now, but could live in after retirement.

"There's no reason you can't buy a property and rent it."


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