Most people want a number when it comes to retirement. In reality, it’s more about the life you want to live. Here’s how to think about what you’ll actually need and where KiwiSaver fits into the picture.

This is one of the most common questions I get asked, and it’s easy to understand why. People want certainty. They want to know if they’re on track and whether they’re going to be okay. The honest answer, though, is that it depends. That’s not always what people want to hear, but it reflects the reality of how different everyone’s situation is.

The real question isn’t just how much money you need to retire. It’s what you want your life to look like when you get there. Until that’s clear, any number is just a rough estimate at best.

Why there isn’t a simple number

A lot of articles will give you a figure or suggest a percentage of your current income that you’ll need in retirement. In practice, that approach doesn’t line up with what I see when working with clients. Retirement looks very different for everyone, and those differences have a direct impact on how much money is needed.

For some people, retirement means stopping work completely. For others, it’s about having the option to stop, but choosing to keep working in a way that suits them. That might be part-time work, consulting, or something completely different from what they’ve done before. When income continues in some form, even at a lower level, it changes the overall picture significantly.

The part most people don’t expect

There is also a shift that happens once people move into retirement. Early on, spending can increase as people travel, take on projects, and make the most of their time. Over time, that usually settles into a more consistent pattern.

People tend to become more conscious of their spending because they are no longer earning in the same way. Costs such as commuting and work-related expenses drop away, and day-to-day life often becomes simpler. Because of this, the idea that you need a fixed percentage of your income for the rest of your life doesn’t always reflect what actually happens.

How KiwiSaver fits into your retirement plan

For most New Zealanders, KiwiSaver plays an important role in retirement planning. However, it’s not something that should be set up once and then left alone indefinitely. It needs to be reviewed regularly to ensure it remains aligned with your situation.

This includes checking that you are in the right type of fund for your risk profile, that your provider is performing well compared to similar funds, and that your KiwiSaver still suits your stage of life. Even small differences in performance over time can have a noticeable impact by the time you reach retirement.

A better way to think about retirement

Rather than focusing purely on how much money you need, it’s more useful to think about what you want your retirement to look like and then work backwards from there. That might include travel, time with family, staying in your current home, downsizing, or continuing to work in some capacity.

Until those things are clear, it’s very difficult to put a meaningful number around your retirement needs. Once you have a picture of what you want, it becomes much easier to build a plan that supports it.

The biggest mistake I see

One of the most common challenges is comparison. People read articles or hear what others are doing and assume they are behind or not doing enough. The reality is that everyone’s situation is different, with different starting points, incomes, priorities, and goals.

What I focus on with clients is helping them make the most of what they have. That might involve making changes, adjusting expectations, or simply gaining clarity. Often, people are in a better position than they realise once they take the time to look at it properly.

What most people really want to know

One of the most common pieces of feedback I hear is relief. Clients will often say they didn’t realise they would be okay. That feeling doesn’t come from reaching a specific number. It comes from having a plan and understanding how everything fits together.

Final thought

Retirement isn’t just about hitting a financial target. It’s about having options and feeling confident in the choices you can make. If you’re unsure where you stand, the best place to start is with a conversation rather than relying solely on a calculator.

Frequently asked questions about retirement in New Zealand

How much money do I need to retire in NZ?
There isn’t a single number that applies to everyone. The amount you need depends on your lifestyle, whether you plan to keep working, and what you want your retirement to look like.

How much KiwiSaver do I need to retire comfortably?
KiwiSaver is usually one part of your overall retirement plan. The amount required depends on your contributions, your fund’s performance, and what other assets or income you have available.

Should I review my KiwiSaver regularly?
Yes, it’s a good idea to review your KiwiSaver at least once a year. This helps ensure you are in the right fund and that your provider is performing well compared to similar funds.

Can I change my KiwiSaver provider?
Yes, and the process is generally straightforward. You apply with a new provider, and they arrange the transfer for you.

What should I look for in a KiwiSaver fund?
You should check that the fund matches your risk profile, is performing well compared to similar funds, has reasonable fees, and still suits your stage of life.

When should I start planning for retirement?
Ideally, you should start earlier than most people do. Beginning in your 40s, even if you are still paying off your mortgage, can make a significant difference over time.

What to do now

If you haven’t reviewed your KiwiSaver in a while, it’s worth taking the time to do it properly.

You can book a time to talk with us here: https://www.decisionmakers.co.nz/tauranga/