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A majority of New Zealand young people believe New Zealand Superannuation will not be sufficient in retirement and the benefit will eventually be means-tested.

The Westpac Fin-Ed Centre report showed most young believed there would be significant changes to New Zealand Superannuation by the time they retired.

In an interim update to the centre's 20-year longitudinal study, participants, now aged between 21 and 26, were asked about their finances and their attitudes to New Zealand super.

Nearly 45% believed New Zealand super would not be sufficient in retirement and 84% believed the age of eligibility for the benefit would increase by the time they retired.

Sixty-three percent of respondents thought the benefit would eventually be means-tested.

Report co-author Claire Matthews said the survey provided evidence younger New Zealanders accepted they would not retire with the same level of government support as today's superannuitants.

The people who were most opposed to the age of eligibility increasing were those retired or close to retirement.

''Yet younger people, who will be the most affected, are already getting the message that receiving New Zealand Superannuation at age 65 is reasonably unlikely.''

It was not sustainable for New Zealand super to be available at 65, Dr Matthews said.

The Government needed to move sooner rather than later, as the longer it was left the harder it was going to be. With enough time, the age of eligibility could be raised gradually, lessening the impact on everyone, she said.

Westpac head of investments and insurance Suzanne Wolton said it was good to see more than 90% of survey participants had taken control of their retirement plan by enrolling in KiwiSaver.

But fewer than 30% of those people were contributing to KiwiSaver at the higher rate of 8%.

''There is a large proportion of younger KiwiSaver investors who may need to assess whether they're putting enough money away for their retirement.''

The survey also found more than 43% of respondents were dissatisfied with their current financial status, an increase from 40% in 2014 and 30% in 2012.

Nearly all participants realised the value of owning a home by the time they retired. However, many appeared overly optimistic about their prospects with 86% believing they had a freehold home by retirement, significantly higher than the current home ownership of 64.8%, she said.

That was a significant gap between the expectation and reality of freehold home ownership. It also emphasised the important role of KiwiSaver in helping people to realise their home ownership ambitions with the availability of the KiwiSaver first home withdrawal option.

Dr Matthews said there was concern some young people were over-confident about their money skills.

''To a large extent, they are still relying on advice from family and friends, although there's a growing number researching on the internet as well - as you'd expect.

''Unfortunately, all these sources of information can be fantastic but they can also be pretty doubtful.''