This study investigates the impact of housing on financial adequacy of New Zealand retirees using the Survey of Family, Income, and Employment (SoFIE) data for the period 2002–2009. We examine the differential effect of housing liquidation options, rent imputation and asset liquidity on financial adequacy. We report evidence of financial adequacy variation across five housing liquidation options and this is influenced by rent imputation. The results show that non-homeowners are less financially adequate than homeowners. We find that Māori, renters and individuals living in multi-dwelling occupancies have much lower levels of financial adequacy. Individuals of Pākehā or Asian ethnicity, homeowners and those living alone benefit more from imputed rent derived through home ownership. Our study highlights the need for the New Zealand government to address the lack of suitable public housing, rising housing and rental prices and mandate compulsory contributory retirement savings plans.