Should people in their 50s and 60s keep their insurance for longer?

In New Zealand, we’re seeing a shift. More people aged 65 and older are staying in the workforce than almost anywhere else in the OECD. Yearly, life expectancy creeps up by about a month, meaning that the traditional idea of retiring at 65 is no longer a given. Many are working longer out of necessity or because they enjoy it, and we’re looking at a future, where living well into your 90s is entirely possible.

A changing financial reality

A lot of people in their 50s and 60s we talk to are still carrying significant financial responsibilities. They may have once imagined selling their business to fund retirement or assumed their children would be independent by their late 60s. With today’s rising living costs, many people in their 50s and 60s still have grown children at home and outstanding debts. That means that cancelling life or health insurance too soon could leave them exposed.

The cost of cancelling too early

It’s a fact that insurance premiums rise once you hit your 50s and beyond. This happens because the likelihood of making a claim naturally increases with age. Statistics from major New Zealand insurers show that people in their 60s are among the top groups for life and health insurance claims.

It can be tempting to cancel your coverage and pocket the premium savings. But if you’re still working, still paying off debt, or still have family depending on you, going without insurance can be a risky move. If something unexpected happens, you might have to dip into your retirement savings or even delay retirement further.

Exploring smarter options

Managing insurance costs can feel overwhelming, but cancelling your cover isn’t the only path forward. Smarter options such as level premium policies or reducing cover rather than removing it entirely can help keep protection in place without breaking the budget. The key is finding the right balance for your stage of life.

How can we help

If you’d like to explore which option is best for you, our insurance advisers can help you get personalised guidance.  Book an appointment with one of our team today through the form below.