Investing before retirement: How much will you need?

How much you need depends on the life you want to live, what you’ve built up so far and how long your money may need to last. NZ Super will form part of the picture for many people, but your savings and investments may need to fund the difference between the income you receive and the lifestyle you want.

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Picturing your retirement

Before we look at the numbers, it helps to picture the retirement you want.

Where will you live?

How much travel is on the list?

Would you like to keep working part-time for a while?

Your answers shape how much you’ll need, and when you can stop.

Chat to us about how we can help you

When can I retire?

This is the question most people arrive with, and it can be answered.

We use modelling software to bring together what you’ve got, what you’re still putting away, what you expect to spend, and NZ Super from 65.

From there we can show you what retiring at different ages would look like, and what would need to change to bring that date forward.

Our Three Meeting Process is where this work happens.

These are often your best saving years

Once the children have left home or finished at university, and the mortgage is smaller than it used to be, there’s usually more room to save than there has been for years.

With retirement getting closer, where those savings sit becomes increasingly important.

Some of the money may be needed relatively soon, while some may stay invested for many years.

Questions we often get asked leading into retirement

Is it worth investing outside of KiwiSaver?

Often, yes. Investing outside KiwiSaver can give you more flexibility, particularly if you may want access to some of your money before retirement. Put the minimum into KiwiSaver to maximise the benefits, then invest any surplus outside it.

Person looking at big pile of coins needing to be invested

Should my investments change as I get closer to retirement?

The key to sensible investing is dividing your money based on when you expect to spend it. The longer your timeframe, the more comfortably your money can sit in growth investments. Money you might need sooner is better placed somewhere steadier.

How much investment risk should I take?

There’s no right answer, only the right one for you. Two people with the same timeframe might be comfortable with very different levels of risk. We’ll talk this through with you so your investments match how you’ll actually feel living with them.

Should I pay off the mortgage first?

There's no single right answer. For some people, clearing the mortgage brings peace of mind; for others, investing makes more sense. Because we have both mortgage advisers and investment advisers, we can look at both sides together.

What if I've received an inheritance, bonus or a lump sum?

There’s no need to rush the decision. We’ll look at when you might need the money and how it fits with your retirement plans before suggesting where it should go. Our Investing a lump sum page covers this in more detail.

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What changes when I retire?

Once you stop working, the job changes from building your savings to drawing on them.

Our Investing in retirement page explains how we help you spend with confidence.

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What if I'm already invested elsewhere?

We can give you a second opinion on your existing investments, how they fit your plans and whether anything needs to change.

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Can I invest sustainably?

Yes. We have sustainable investing options which balance our core investment approach with environmental, social and governance considerations, so your investments can reflect what you care about.

Meet our investment experts

Our team of Glyn, Anna-May and Kathryn have over 70 years of experience in helping clients understand their investments. In target setting, choice of investments and deciding appropriate levels of investment risk.

Book your free initial consultation now

"Time was ticking towards retirement age and I had no plan. I had recently had big changes in my life and had moved to Nelson.
Time for a plan but who to trust to do this. A friend referred me to Castle Trust. They have been amazing and made everything so easy to understand.
I am now on track for retirement when it comes. I would recommend you get them to help. They are the experts
Thanks Team."

Debbie H

Frequently asked questions

Can I retire before 65?

Some people can. If you retire before NZ Super begins, you’ll need enough of your own money to cover the gap. Modelling it beforehand can show you what retiring earlier would mean for your savings.