The current polls show a neck-and-neck race. I would say that it would be better for the party to stay with the same face.
However, a neck-and-neck race might have induced more pressure for Ms. Ardern to be out in the hustings a lot more than she has been. The party might have given her an ultimatum, and she declined.
I can't say if she is a master politician, but her Wiki bio says she has been in politics since she was 17. She is still young. She could be back.
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Most Canadian politicians retire after about a decade. They will cite "family time" as their reason. I say they already knew about this sacrifice of politics before they put their name on the ballot. So there stated reason is suspect.
For back bench politicians, they have little influence in public policy. If, after decade, they have not made a cabinet position (where they will have influence), it is time to retire because they accomplished very little.
For cabinet ministers, burnout is a more likely reason to retire before actually losing an election.
Ms. Ardern said she was burned out. I will take that reason at face value.
But "family time" does not cut it for me.