Christmas Message from Kevin
2025 is almost behind us, and for many it has not been the easiest of years. Uncertainty in the interest rate market has created some angst for existing borrowers and made things challenging for first- and second-home buyers.
2026 Outlook
Christchurch continues to be “the place to be.”
Strong housing growth, a robust farming sector boosted by the Fonterra windfall, increasing tourism, and a stable job market are all contributing to a positive outlook for 2026.
KSL, supported by our parent company the Maurice Trapp Group, is looking for further acquisitions in Canterbury. Our Mortgage Lab subsidiary is continuing its strong growth, helping KSL clients consolidate debt and providing mortgage advice. If you need mortgage or debt advice, give me a call and I’ll introduce you to one of their advisers.
KSL has also experienced strong growth in our medical book. I have developed a strategy to reduce premiums while retaining core cover. If you’d like to review your options, please get in touch.
Protecting the “Bank of Mum and Dad”
A key focus for 2026 is protecting the “Bank of Mum and Dad.”
I have developed a “re-insurance” strategy for parents, particularly ‘empty nesters’, to help ensure you’re not exposed to a major financial crisis if one of your teenage or adult children suffers a serious accident, cancer, or another debilitating illness or injury.
If you’d like to know how to protect the “Bank of Mum and Dad,” give me a call.
What 2026 Looks Like for Kevin and KSL Insurance Limited
I have no intention of retiring, but I now have excellent support from Ben and Mele, who will manage all my IT and paperwork (never my strengths).
Ben will manage all of my computer work. He is now a fully qualified computer scientist and has been developing our client management systems, data input programs, and our new upgraded website.
Mele, who has been working with me this year in a back-office support role, will now be my front-of-office support person, assisting with both paper and electronic applications. Mele has a banking background in digital response servicing, and I am mentoring her as she works towards her Financial Advice qualifications.
After 55 years, I now only need to focus on the advising side, while qualified younger people complete the compliance documentation and fight the “paper war” on my behalf (better late than never). My aim is to meet or speak with you more often and keep you up to date with information and strategies to better protect you and your loved ones.
KiwiSaver
Despite saying I would not return to fund management, KiwiSaver is an area where many clients need help.
A lot of clients have significant KiwiSaver balances but:
Don’t know which fund they are in
Are unsure if it’s appropriate for their situation
Are uncertain whether it is performing as it should
I’ve researched the market and selected funds that I would invest in myself, or that I believe are appropriate for you based on your risk profile questionnaire.
If you would like to undertake a review of your KiwiSaver give me a call.
I will be running educational seminars through 2026 at our offices in the Regus Building, 14 Hazeldean Road, Addington. I’ll keep you informed of dates.
National’s New Zealand Superannuation Announcement
More good news for 2026: I was pleased when Prime Minister Christopher Luxon announced that National, together with New Zealand First, will not be raising the age of retirement above 65.
This means you can plan your retirement with greater certainty, knowing that the Michael Cullen–designed New Zealand Super Fund (the Cullen Fund) is on track to deliver on its promise: a tax-funded retirement pension for all at age 65, protected from ongoing political tinkering.
The Cullen Fund, established in 2001, was designed so retirement at 65 would remain affordable and sustainable, and so the “Baby Boomer hump” would be fully funded via a tax-based savings system. The fund currently sits at over $85 billion and is expected to exceed $120 billion before any withdrawals can be made which are scheduled for 2028. Initial withdrawals will be modest, helping to support taxpayer-funded pension costs. Larger drawdowns are projected for the mid-2030s, with the fund continuing to grow and peaking around 2070. It is a long-term fund with withdrawals governed by formula, not political whim.
If you would like to undertake a ‘retirement ready ‘ review please give me a call.
A Personal Note
For Pam and me, this is our favourite time of year, with our children and grandchildren joining us as we head back to our caravan at Tahunanui. We’ll be resuming our biking, walking, swimming, and socialising with our long-standing caravan community.
I wish you, your family, and your friends a safe and happy Christmas and a prosperous New Year for 2026. I look forward to catching up with you in the year ahead.
Merry Christmas
Kevin
Some comments in this newsletter are opinion and not based on your individual circumstance. No financial decision should be made solely on the information in this newsletter alone.