How Much Do You Really Need for Retirement in New Zealand? (2025 Update)

Written By Liam Hallam-Eames

Planning for retirement can feel overwhelming, but having clear numbers makes everything easier. The 2025 New Zealand Retirement Expenditure Guidelines offer one of the most accurate pictures of what retirees actually spend and how far NZ Superannuation really goes.

Below is a simple breakdown of the key insights to help you better understand what retirement may cost and what steps can help you prepare.

NZ Super vs Real Retirement Spending

NZ Super provides a basic foundation, but the research shows that most New Zealanders spend more than these weekly payments cover.

NZ Super (after tax):

  • Single: $538.42/week

  • Couple: $828.34/week

For many retirees, this won’t be enough to maintain a comfortable lifestyle—especially in metro areas.

How Much Retirees Actually Spend (Metro)

The guidelines outline two lifestyle categories:

1. No Frills (Basic Lifestyle)

  • Single: $705/week

  • Couple: $937/week

2. Choices (Comfortable Lifestyle)

  • Single: $791/week

  • Couple: $1,780/week

This shows a clear gap between what NZ Super provides and what retirees typically spend.

The Weekly Shortfall

Based on metro averages:

  • Singles: Shortfall of $167-$252/week

  • Couples: Shortfall of $109-$952/week

This gap needs to be covered by personal savings, KiwiSaver, investments, or part-time income.

How Much You May Need Saved

Using the official calculations, the estimated lump sum required at age 65 to close this spending gap is:

Singles:

  • $181,000-$273,000

Couples:

  • $118,000-$1,033,000

These ranges vary based on lifestyle expectations, housing decisions, and other personal factors.

Housing Has a Major Impact

Where you live in retirement can significantly affect your weekly costs:

  • Renting: Often $400-$700/week depending on location

  • Homeownership: Rates and maintenance continue to rise across the country

  • Retirement villages: Provide lifestyle benefits but come with upfront purchase costs and ongoing weekly fees

Understanding your likely housing situation is a key part of accurate retirement planning.

Why Planning Early Helps

Small adjustments now, whether through KiwiSaver settings, additional savings, reducing debt, or understanding your future costs can make a substantial difference later.

Getting clarity on your “retirement number” can help you feel more confident and in control of your financial future.

Liam Hallam-Eames
Next

Weekly Market Wrap 25 Oct 2025 - Markets Edge Higher as US Strength Leads