Starting Point

When we think about planning for retirement, for those of us that do, we often start with the question: how much do I need to have saved to enjoy the lifestyle I want? Whilst this is a great starting point, there are a variety of qualitative factors that will likely drive the price of retirement, and that is where we should start.

Longevity Matters

In New Zealand, the current retirement age is 65. Life expectancy, however, is around 80 for men and 84 for women. Averages only tell half the story, and many people live well into their early nineties. With this in mind, it’s prudent to plan for your savings to last until at least age 90, just in case you’re one of the many who live longer than the average lifespan.

Funding 25 Years

The pertinent question is: how much do I need to fund 25 years without being paid a regular income? Firstly, not everyone chooses to retire at age 65, and for many people that have the option, transitioning down hours and days over a period of time is a sensible and thoughtful approach. The benefits of a transition are not isolated to the financial advantages of cashflow and preserving retirement savings. We often gain social connection, purpose, and self-esteem from our work; some may even find identity in their work, and the idea of leaving on the date of your sixty-fifth birthday can seem rather arbitrary.

Lifestyle and Spending

Secondly, the question of how much depends on your individual circumstances and how you choose to live. One option involves keeping a detailed record of your annual spending a few years prior to retirement, excluding expenses that will no longer be relevant, and applying an inflation adjustment to calculate how much you will likely spend each year. Adjust the figure to account for anticipated changes in spending during retirement. A less structured alternative to calculating “your number”, the term often used for this exercise, involves maximising your savings and investment rates throughout your working life and adopting an adaptive lifestyle in retirement. 

Additional sources of funding may come from downsizing the family home, inheritance, or the sale of assets that are no longer relevant to your lifestyle.

Using the Calculator

The calculator below has been designed to provide information on a range of outcomes from investing regularly over a lifetime and to set realistic expectations for drawing down those savings in retirement.

Important information 

This calculator is provided by McBride Wealth for general information and illustrative purposes only. It does not constitute financial advice and does not take into account your individual financial situation, goals, risk tolerance, tax position, or personal circumstances. Before making any financial decision, you should seek advice from a licensed financial adviser who can assess your specific needs.

The projections generated are hypothetical and based solely on the inputs and assumptions you provide. Return rates of 2.5% (Conservative), 3.5% (Balanced), and 4.5% (Growth) are illustrative only and do not represent the past or future performance of any specific fund. Contributions are assumed to escalate at 3.5% p.a. Return assumptions align with the KiwiSaver return projection figures set by the New Zealand Government. These return assumptions are after-tax, levied at 28% and after fees, with the fee being an average for the fund type.

The government KiwiSaver contribution of $260.72 p.a. is included where the income threshold selected is $180,000 or below, consistent with current Inland Revenue rules. Investment returns are not guaranteed, and the value of investments can go up as well as down.

McBride Wealth Ltd is a licensed Financial Advice Provider under the Financial Markets Conduct Act 2013 (FSPR No. FSP1008930). A copy of our Public Disclosure Statement, which sets out information about our services, fees, and any conflicts of interest, is available at mcbridewealth.co.nz/public-disclosure-statement.

To the maximum extent permitted by law, McBride Wealth accepts no liability for any loss or damage arising from reliance on this calculator. For personalised advice, please contact us directly.

This calculator was last updated 07 May 2026. Return assumptions and government contribution amounts are reviewed periodically and may be updated without notice.