Start with what you expect to spend
Retirement doesn't come with a standard price tag. The amount you need will depend on the life you want and the costs you expect to have.
Consider your everyday costs, whether you plan to travel, your health and unexpected expenses.
Sorted's Budget Planner can help you estimate your future spending.
Add up your income
Once you have an idea of what you might spend, think about where your income could from:
NZ Super
your KiwiSaver
other savings or investments
any other income you expect to receive.
The gap between what you'd like to spend and the income you expect to have is what your savings may need to cover.
Bringing the numbers together
Start with
Your estimated annual spending
Then subtract
NZ Super and any other regular income
What remains
The amount your savings may need to provide each year
Eligible for NZ Super?
For many New Zealanders, NZ Super forms part of their retirement income. But it's usually only one piece of the puzzle.
Checking the latest rates and eligibility criteria can help you work out how much of your retirement income might come from NZ Super.
Not where you’d like to be?
Your retirement savings are built over time. Even small changes today could help you get closer to your goal.
Consider:
Checking whether your fund still suits you.
Increasing your contribution rate.
You can revisit your plan as your circumstances change.
Our Fund Finder can help you understand which fund could suit when you expect to use your KiwiSaver savings.
Common questions
Explore common questions people ask about how much money is needed for retirement.
Yes, if you meet the eligibility criteria. Working doesn’t stop you getting NZ Super, although other income may change the tax code you use, and therefore how much NZ Super you receive after tax.
You may still have options. Check what you expect to spend, project your KiwiSaver balance, and check whether your contribution rate and fund still suit where you’re heading.
If you want to personalised financial advice, consider speaking with a financial adviser.
That depends on what you expect to spend in retirement. Work out your likely costs, then compare them with NZ Super and any other income or savings you expect to have.
Inflation means prices generally rise over time, so the same amount of money may buy less in the future. Allowing for inflation can give you a more realistic view of how much income you may need and how long your savings could last.
There is no single answer. Your health, retirement age, spending and lifespan will all play a part.
Planning for a range of timeframes can help you see how your savings might hold up under different scenarios.
Can't find what you're looking for? Check out our FAQs page.
