Retirement planning

Pay no attention to headline numbers aimed to shock you into saving! You'll probably need far less than they let on. Think of it this way: for every $100,000 you save, that typically equates to around $100 a week throughout your retirement. And that’s on top of NZ Super. So most of us will not need that much to retire comfortably, but of course it depends on how you'd like your lifestyle to be. Here's where you can check your own retirement numbers easily. 

Your answer depends on what your lifestyle goal is. Simply put, if you can fund your lifestyle target, you have enough! But what if you are not sure what your goal should be? It helps to have a look at what retirees are spending today in terms of a 'no frills' or 'choices' lifestyle, based on surveys. You may find your retirement number is lower than you think. Here's our helpful starter here. 

It's never too early! In fact, the earlier you begin, the less you have to set aside regularly, and the more you can achieve over the decades to come. People tend to underestimate how much they can achieve in the long run. The other thing to do as early as possible: run your retirement numbers to see how you're tracking. The sooner you do, the more time you have to achieve your lifestyle goals. Here's our retirement calculator.

Ideally, yes. For most of us, retirement means stepping back from paid work and living with more of a fixed (and typically reduced) income, which can make carrying debt all the heavier. And the less we can use our retirement savings for paying back debt, the better. Our debt and mortgage calculators can help you chart the quickest way out of debt before you retire.

Debt calculator

Mortgage calculator

Good on you for asking the question now, just as you are ramping up your earning years. If you work out how many paydays you have left until you retire – there will be hundreds – you only have to set aside a small amount from each in order to set yourself up for a fabulous retirement. KiwiSaver is expressly made for building up your retirement savings, so you want to take advantage – especially since your employer and the government also contribute when you do. Focus on your fund type and your contribution rate, which will make the most difference. Try out our new KiwiSaver calculator to help you plan. 

You can certainly have a decent retirement without owning your own property, although you will need to sort your accommodation. There are many of us who have been priced out of the housing market. One thing to consider is to funnel your savings into a managed fund that suits you. The figures show that you could enter retirement in better shape than a homeowner if you play your cards right. Here's more about managed funds. 

Our newly revamped retirement calculator makes it easy to work out where you are at. You can enter in your projected KiwiSaver balance, NZ Super, and any other assets or income you expect to have when you retire. The calculator gives you some clear, round numbers of where you can expect to be – far ahead of time so you can make any adjustments you need to hit your future lifestyle goal. Here's our retirement calculator. 

For many of us, there will be a gap between what we're on track to have in retirement and how much we'd like to have for our future lifestyle. The first steps to retirement planning are figuring out how much of a gap you may have, and then taking action to bridge it. Two important considerations are how soon you'd like to retire, and how long your typical retirement might be. You can also take a crack at how much you'll need by looking at what retirees are spending now. Here's some help to work out your own numbers today.

KiwiSaver is a highly regulated area that's made for retirement saving. These managed funds are portfolio investment entities (PIEs), and the professional fund managers are supervised by external companies charged with overseeing the managers. The money is held in trust for investors, and even if a fund manager's own business were to fail, our investments would be ring-fenced and remain untouched. We would stay on track, building toward retirement. Here's our retirement calculator to see how KiwiSaver and your other investments fit your lifestyle goals.

Glad you asked – we've recently revamped our retirement calculator and set the default to 25 years. But it's adjustable, and that's because many of us are both working for longer and living quite a lot longer. So it's best to work out your own number. After you take a punt at what age you'd like to retire, you can estimate your longevity more precisely using cohort data from Stats New Zealand. Here's where to estimate yours.

NZ Super is the government pension paid to Kiwis aged 65 and older. It's currently $437 for individuals, $672 for couples. Everyone eligible receives it, no matter how much they are still earning (you can still work and receive it), what they have in savings or investments, how much they own, or how much they’ve paid in taxes. You need to be a legal resident of New Zealand and have lived here for 10 years since age 20, with 5 of those years being after you turn 50. Here's more on how NZ Super works and the current rates. 

It’s challenging to estimate how much you’ll need for your future lifestyle, but one way is to have a look at what retirees are spending now. Do you think you'll live in one of our large cities, or in a smaller town? That's one of the things that can influence how much you'll need. We've added some figures in our retirement calculator for you to work out your own retirement number. Here's where to find that tool.

Sounds like you'll be well taken care of! You can expect to receive NZ Super (currently $403 per week if you’re single and sharing a home). But perhaps you could also put your family in an even better position financially by taking up the heaps of money you could receive in KiwiSaver – from your employer, the government and the investment markets. It's more than just your savings going in, after all. Here's more on the benefits of KiwiSaver to consider.

Simply because: you are walking away from money that is rightfully yours. This is no small thing, as it amounts to thousands – and likely tens of thousands – of dollars difference for your future. This is because there is matching employer money as well as a government add-on that typically flows into KiwiSaver alongside yours. And the greatest gains typically will come from all that money being invested for you by professionals. So the costs of missing out are huge. Here's how much you could be stepping away from in our KiwiSaver calculator.  

FIRE stands for 'financial independence, retire early', and it's a movement of people aiming to retire early by radically hacking their financial lives. By saving and investing large proportions of their earnings in managed funds, they are able to then live off their investment returns indefinitely. The higher their savings rate is, the earlier they can retire. So much of our skill with money comes down to our ability to save, and the FIRE movement proves that financial independence is possible. Here’s more about managed funds.

Generally KiwiSaver is only available at age 65 so it’s typically not for an early retirement – that money would need to stay invested and growing. There are some situations where you can access it earlier though. If you're withdrawing for a first home, moving overseas permanently, experiencing significant financial hardship, your health makes it difficult to work, or for other reasons such as a relationship breakdown, you could be able to withdraw your money. Here's more on how KiwiSaver works. 

KiwiSaver was expressly built for retirement. (You can also use it for a first home, but it's primarily a retirement savings scheme.) It funnels money from you, your employer and the government into your account, investing it in units of investments that can grow in value over time and set you up for a comfortable lifestyle in retirement. Because it was built for purpose, you can use it for your core investing for the long term. Here's our new KiwiSaver calculator. 

Yes. That said, the figures typically shown for how much NZ Super is – currently it's $437 a week for individuals, $672 for couples – are after taxes have been taken out. Here's where to find this year's NZ Super rates. 

Especially when it's far off, it can be a bit of a mystery how much you'll need in retirement. But you can estimate enough to plan ahead. It’s challenging to work out how much you might need for your future lifestyle, but one way is to have a look at what retirees are spending now. Based on if you're planning with a partner, whether you’d like more lifestyle choices, and where you think you'll live, here’s how you can get an idea.

You need a really good reason not to use KiwiSaver for retirement. This is because it is not just your money flowing in – there is also money from the government and your employer (if you're an employee). You’ll miss out on that money if you don’t use KiwiSaver. That money is invested by professionals for the long term, and most of your retirement money will typically come from investment returns. That said, there are retirement schemes that can be better or more generous (although you may want to still use KiwiSaver to get the government contribution). If your employer offers one, go for it! Here's our KiwiSaver calculator to compare.

The '25x rule' aims to provide an answer to how much you need to retire: 25 times the annual income you'd like in retirement. So if you'd like $30,000 a year when you retire above NZ Super, you need to build up $750,000 through your saving and investing (25 x 30,000). It's important to know that this is just one way to set your retirement goal, and it may or may not be enough for what you are aiming to achieve. Our retirement calculator can help you see if it works for you. 

Kaua e aro ki ngā tatauranga o ngā ūpoko kōrero e whai ana ki te whakamataku i a koe ki te penapena moni! Kāore e kore he iti pea te pūtea e hiahiatia ana e koe i ō te pūtea e kōrerohia ana. Me whakaaro pēnei: mō ia $100,000 ka penapenahia, he āhua rite ki te $100 i ia wiki mō tō ahungarua. He tāpiringa tēnei ki tō penihana. Kāore te nuinga o mātou e hiahia ki te pūtea pērā rawa te nui kia pai ai te ahungarua, otirā mā te āhua o te kātū noho e hiahia ana koe e tohu i te nui o te pūtea. Anei te wāhi e māmā ai te tirotiro i ō tatauranga ahungarua.

Mā te āhua o tō whāinga kātū noho e tohu i tō whakautu. Hei whakamāmā ake, mēnā ka taea e koe te utu i te kātū noho e whāia ana, kua rahi tērā! Heoi anō, ka aha mēnā kāore koe i te mōhio ki te rahi o te pūtea e tika ana? Hei āwhina i a koe, tirohia ngā uiuinga e whakaatu ana i te maha o te pūtea e utua ana e ngā kaumātua mō te kātū noho ‘ihupuku’, te kātū noho ‘kōwhiringa’ rānei. Ka kitea pea he iti iho tō tatauranga ahungarua i tērā i whakaarohia e koe. Anei tō mātou rauemi tīmatanga hei āwhina i a koe.

He pai te mahi tōmua! Mēnā ka tīmata tōmua, ka iti ake te pūtea ka penapenatia auautia, ā, ka nui ake te pūtea ka penapenahia i roto i ngā tau e heke mai nei. Ka āhua iti nei te pūtea ka matapaetia e te tangata ka penapenahia e ia i roto i ngā tau. Ko tētahi atu mahi tōmua māu: tirohia ō tatauranga ahungarua kia kitea e pēhea ana te haere. Mēnā he wawe tō mahi pērā, ka nui ake te wā ki a koe ki te whakatutuki i ō whāinga kātū noho. Anei tā mātou tātaitai ahungarua.

Tōna tikanga, āe. Mō te nuinga o mātou, ko te tikanga o te ahungarua, ka mutu te mahi whaiutu kātahi ka pūmau te moni whiwhi e utua ana (i te nuinga o te wā kua whakaitihia), ā, ka taumaha ake te utu i ngā nama. Ā, he pai ake mēnā kua kore e mate ki te utu i ngā nama ki ngā pūtea ahungarua. Mā ā mātou tātaitai nama me te mōkete e āwhina i a koe ki te whakamahere i te huarahi tere rawa hei utu i ngā nama i mua i tō ahungarua.

Ngā mihi ki a koe, mōu i pātai mai i tēnei wā, i a koe e whakapiki haere ana i tō penapena pūtea. Ki te whai whakaaro koe ki te maha o ngā rā utu e toe ana i mua i tō ahungarua – he maha – me iti noa iho te pūtea mai i ia rā utu hei penapena kia pai ai tō ahungarua. I whakaritea te KiwiSaver hei penapena pūtea ahungarua, nō reira me uru ki tēnei kaupapa - inārā kei te kuhu moni hoki tō kaituku mahi me te kāwanatanga ina kuhu moni koe. Me aro ki te momo tahua me tō pāpātanga moni kuhu, koinei te take e tino rerekē ai tō pūtea. Whakamātauhia tō mātou tātaitai KiwiSaver hou hei āwhina i a koe ki te whakamahere.

Ka taea tonu te ahungarua pai ki te kore e whiwhi whare, engari me whakarite koe i tō wāhi noho. He tokomaha tātou kāore e taea te hoko whare. Ko tētahi mea hei whakaarotanga mōu ko te kuhu i tō moni penapena ki tētahi tahua e pai ana ki a koe. Mēnā he tika tō whakahaere i ō moni, e ai ki ngā tatauranga ka taea pea e koe te ahungarua pai ake i ō te kaiwhiwhi whare. Anei ētahi atu kōrero mō ngā tahua taurima.

Mā tā mātou tātaitai ahungarua hou e māmā ai te tātai i te pai o ō pūtea. Ka taea te tāuru i te tapeke KiwiSaver e matapaetia ana, te Penihana, ngā rawa me ngā moni whiwhi e tūmanakohia ana mō tō ahungarua. Ka tātai te tātaitai i ngā tau māmā e kitea ai te pūtea e matapaetia ana – i mua rā anō kia taea ai te whakatikatika i ngā pūtea e hiahia ana kia tutuki ai tō whāinga kātū noho. Anei tō mātou tātaitai ahungarua.

Mō te tokomaha o tātou, he rerekē te maha o te pūtea e penapena ana mō te ahungarua i te maha o te pūtea e hiahia ana mō te kātū noho o anamata. Ko te mahi tuatahi mō te whakamahere ahungarua ko te whakatau i te nui o te rerekētanga, me te whai i ngā mahi hei whakatikatika. Ko ētahi take nui e rua hei whakaarotanga ake ko te wā e hiahia ana ki te noho ahungarua, me te roa o tō ahungarua. Ka taea hoki te matapae mā te titiro ki ngā utu a te hunga ahungarua ināianei. Anei tētahi rauemi hei āwhina i a koe ki te whakarite i ō tatauranga.

Ko te KiwiSaver tētahi haumitanga kua āta whakaturehia i whakaritea ai mō te penapena pūtea ahungarua. Ko ēnei tahua taurima he hinonga huinga haumitanga (PIE), ā, e whakahaerehia ana ngā kaitaurima ngaio e ngā kamupene rāwaho kua whakaritea kia whakahaere i ngā kaitaurima. Ka puritia te moni e tētahi kaitiaki mō ngā kaihaumi, ā, mēnā ka mūhore te pakihi a te kaitaurima, ka tiakina ā mātou haumitanga kia kore ai e riro. Ka noho tonu ngā pūtea, ka tipu haere mō te ahungarua. Anei tā mātou tātaitai ahungarua kia kitea me pēhea te KiwiSaver e hāngai ki ō whāinga kātū noho.

He pātai pai tērā – kātahi anō mātou ka whakahou i tā mātou tātaitai ahungarua me te whakarite i te taunoa ki te 25 tau. Engari ka taea te whakarerekē, i te mea e mahi ana te nuinga o mātou mō te wā roa, he roa ake hoki te oranga. Nō reira he pai ake te whakarite i tāu ake tatauranga. Mutu ana tō matapae i te pakeke e hiahia ana koe ki te noho ahungarua, ka taea e koe te matapae i te roa o tō oranga mā te whakamahi i ngā raraunga pūtoi mai i a Tatauranga Aotearoa. Anei te wāhi hei matapae i tāu.

Ko te Penihana te penihana a te kāwanatanga e utua ana ki ngā tāngata nō Aotearoa 65 te pakeke, neke atu rānei. I tēnei wā e $437 te penihana mō te tangata takitahi, e $672 mō te tokorua. Ka whiwhi katoa ngā tāngata e māraurau ana, ahakoa te nui o te moni e whiwhi tonu ana (ka taea te mahi tonu me te whiwhi penihana), te nui o te pūtea penapena, haumitanga rānei, te maha o ngā rawa, te nui rānei o ngā moni tāke i utua. Ko te tikanga me kainoho ā-ture o Aotearoa, kua noho ki konei mo te 10 tau mai rā anō i te 20 tau te pakeke, ā, e 5 o ērā tau i muri i tō huringa tau 50. Anei ētahi atu kōrero mō te mahi a te Penihana me ngā pāpātanga o nāianei.

He uaua te matapae i te nui o te pūtea ka hiahiatia e koe mō tō kātū noho o anamata, engari ko tētahi huarahi ko te titiro ki ngā utu o te hunga ahungarua o nāianei. Ki o whakaaro ka noho koe ki tētahi taone nui, ki te taone iti rānei? Koinei tētahi āhuatanga e whakaaweawe ana i te nui o te pūtea ka hiahiatia e koe. Kua tāpirihia e mātou ētahi tatauranga ki tā mātou tātaitai ahungarua kia pai ai te tatau i tō tatauranga ahungarua. Tirohia taua rauemi ki konei.

Te āhua nei ka tiakina paitia koe! Ko te tikanga ka whiwhi koe i te Penihana (i tēnei wā ko te $403 i ia wiki mēnā he takitahi koe e noho ana me ētahi atu). Ka āhei pea koe ki te āwhina i tō whānau kia pai ake te tūranga ahumoni mā te whai wāhi atu ki ngā moni maha ka whiwhi koe i te KiwiSaver – i tō kaituku mahi, te kāwanatanga me ngā mākete haumi. He nui ake i tāu ake pūtea penapena e uru ana ki taua tahua. Anei ētahi atu kōrero mō ngā hua o te KiwiSaver hei whakaaroaro māu.

Nō te mea: ka whakarērea e koe ngā moni e tika ana māu. Ehara i te mea he take iti noa iho tērā, he manomano tāra kē mō tō anamata. Ko te take i pērā ka orite te moni ka whiwhi i tō kaituku mahi, me te mōni tāpiri mai i te kāwanatanga e kuhuna ana ki te KiwiSaver i te taha o āu ake moni. Ā, ko te nui o ngā hua ka puta i ngā moni katoa e haumi ana māu e ngā kaitaurima. Nō reira he nui ngā moni ka kore e whiwhi. Anei te nui o ngā moni ka whakarērea pea e koe i roto i tō mātou tātaitai KiwiSaver .

Ko te tikanga o te FIRE ko te ‘financial independence, retire early', ā, he hunga e whai ana i te ahungarua moata mā ētahi rautaki hei whakarerekē i ō rātou tūranga ahumoni. Mā te penapena me te haumi i tētahi wāhanga nui o ā rātou moni whiwhi ki ngā tahua taurima, e āhei ai rātou ki te whai oranga i ngā hua o ā rātou haumitanga mō te wā roa. Mēnā he nui ake te moni e penapena ana, ka wawe tonu te ahungarua. Ko te tino pūtake o ngā pūkenga whai moni ko te āheinga ki te penapena pūtea, ā, ko te kaupapa FIRE e hāpono ana ka āhei te motuhaketanga ahumoni. Anei ētahi atu kōrero mō ngā tahua taurima.

Tōna tikanga ka 65 tau tō pakeke ka āhei koe ki te whiwhi i tō KiwiSaver, nō reira ehara i te pūtea mō te ahungarua tōmua – me noho haumi tonu aua moni kia tipu haere. Tērā ētahi āhuatanga e āhei moata ai koe ki taua pūtea. Mēnā kei te tango i te moni mō te whare tuatahi, kei te hūnuku ki tāwāhi noho ai, kei te noho rawakore, me ētahi atu take pērā i te wehe i tō hoa rangatira, ka taea pea te tango i tō moni. Anei ētahi atu kōrero mō te mahi a te KiwiSaver.

I whakaritea te KiwiSaver mō te ahungarua. (Ka taea e koe te tango pūtea mō te whare tuatahi, engari ko te kaupapa matua ko te penapena pūtea mō te ahungarua.) Ka kuhuna tō moni, te moni a tō kaituku mahi me te kāwanatanga ki tō pūtea, ka haumi i taua pūtea ki ngā pānga haumitanga ka tipu haere i roto i ngā tau kia rite ai koe mō te kātū noho pai i te ahungarua. I te mea koirā tana mahi, ka taea te whakamahi hei haumitanga matua mō te wā roa. Anei tā mātou tātaitai KiwiSaver hou.

Āe. Ahakoa tērā, ko te utu e tino kitea ana mō te Penihana – i tēnei wā ko te $437 i ia wiki mō te takitahi, $672 mō te tokorua – i muri i te tango i te take. Anei te wāhi e kitea ai ngā pāpātanga Penihana o tēnei tau.

Mēnā he roa tonu te wā i mua i te ahungarua, he uaua te matapae e hia te pūtea ka hiahiatia e koe mō te ahungarua. Engari ka taea e koe te matapae kia pai ai tō whakamahere. He uaua te whakatau e hia te pūtea ka hiahia mō te kātū noho o anamata, engari ko tētahi huarahi ko te titiro ki ngā utu a te hunga ahungarua o nāianei. Anei te rauemi hei āwhina i a koe ki te matapae i te pūtea ka hiahiatia mēnā e whakamahere ana mā kōrua ko tō hoa rangatira, mēnā e hiahia ana ki ngā kōwhiringa kātū noho maha, e ai hoki ki tō wāhi noho.

Me tino whai take tō kore hiahia ki te whakamahi i te KiwiSaver mō te ahungarua. I te mea ehara ko tō moni anake e kuhuna ana – e kuhuna ana hoki ngā moni a te kāwanatanga me tō kaituku mahi (mēnā he kaimahi koe). Ka kore koe e whiwhi i ērā moni ki te kore e whakamahi i te KiwiSaver. Ka haumitia ērā moni e ngā kaitaurima ngaio mō te wā roa, ā, ko te nuinga o ō moni ahungarua ka puta mai i ngā hua haumitanga. Heoi anō, tērā ētahi kaupapa ahungarua pai ake, he nui ake rānei ngā hua (ahakoa ka hiahia tonu koe ki te whakamahi i te KiwiSaver kia whiwhi ai i te moni kuhu a te kāwanatanga). Mēnā e tuku ana tō kaituku mahi i tētahi, whāia! Anei tā mātou tātaitai KiwiSaver kia āhei ai te whakataurite.

E whai ana te ‘tikanga 25x’ ki te whakatau i te nui o te pūtea ka hiahiatia mō te ahungarua: arā ka whakarea ki te 25 te moni whiwhi ā-tau e hiahiatia ana e koe mō te ahungarua. Arā, ki te hiahia i te $30,000 i ia tau i tō ahungarua, nui ake i te Penihana, me whai i te pūtea $750,000 mā te penapena me te haumi (25 x 30,000). He mea nui kia mōhio koinei tētahi huarahi noa iho hei whakarite i tō whāinga ahungarua, ā, ka tutuki, ka kore pea e tutuki i tāu e whai ana. Mā tā mātou tātaitai ahungarua e āwhina i a koe kia kitea mēnā he pai māu.