There’s no single number that works for everyone. Massey University’s retirement expenditure guidelines show what retired New Zealanders spend on average, but nobody lives an average retirement. At Castle Trust, we use those figures as a starting point when building a personal Spending & Investing Plan that reflects the retirement you want, how much you’ve already saved, and how you’ll use your money once you stop working.

How much do I actually need to retire?

It’s one of the most common questions we hear.

The challenge is that there’s no single number that works for everyone. Two retirees living in the same town can have very different lifestyles, spending habits and goals. One might be happy staying close to home and living simply, while another wants regular travel, home renovations and helping family members financially.

Massey University’s New Zealand Retirement Expenditure Guidelines provide a valuable benchmark by showing what retired New Zealanders actually spend. They give people a useful place to begin.

But they’re only averages. They aren’t a retirement plan.

At Castle Trust, we use them as one input when helping clients work out how much they’ll need, how long their savings may need to last, and how to turn those savings into a sustainable retirement income.

Start with the retirement you want

Before looking at any numbers, it helps to picture the retirement you actually want.

Questions we often discuss include:

  • How much travel is on your wish list?
  • Do you want to keep working part-time?
  • Will you help children or grandchildren financially?
  • Are there major purchases or projects you’d still like to complete?

The answers to these questions help shape what retirement may cost and when you might be able to stop working.

Retirement spending in Nelson-Tasman

Massey’s guidelines divide New Zealand into two regions: Metro (Auckland, Wellington and Christchurch) and Provincial (everywhere else). Officially, Nelson-Tasman falls into the Provincial category.

However, in our experience, many Nelson-Tasman retirees find the Metro figures provide a useful comparison point. Housing costs, rates, insurance and the popularity of the region with retirees can mean living expenses feel closer to larger centres than many other provincial areas.

That’s one reason why it helps to work with a local financial adviser. The numbers in a national report provide a guide, but they don’t always reflect the reality of living in a particular region.

Retirement income comes from more than one source

When people think about retirement, they often focus on the spending side of the equation. Just as important is understanding where the income will come from.

For most New Zealanders, retirement income is usually a combination of NZ Super, KiwiSaver, personal investments, savings and other income sources. The right mix will be different for everyone.

Part of our role is helping you understand how these sources work together and how much you can sustainably withdraw over time. The aim is an income that supports the lifestyle you want throughout retirement.

Your needs will change through retirement

Retirement isn’t one long, even stretch.

Many people are most active in the earlier years of retirement. Travel, hobbies and experiences often play a larger role during this stage, with spending patterns changing later in life.

That’s why we encourage people to think beyond a single annual budget.

For example, someone planning extensive travel during their first ten years of retirement may need a different strategy from someone whose spending is likely to remain relatively consistent over time.

A good retirement plan considers not only how much you’ll spend, but when you’ll spend it.

The bottom line

The most important question isn’t what the average retiree spends. It’s whether you’ll have enough to enjoy the retirement you want.

Whether you’re a few years from retirement or still building towards it, we’re happy to help you create a plan that fits your goals, your lifestyle and your future. We’re locals, based right here in Nelson-Tasman, and the first chat is always free, with no pressure and no obligation.

Book a free chat with one of our advisers.

Frequently asked questions

How much do I need to retire in New Zealand?

It depends on the retirement you want. Massey University’s retirement expenditure guidelines provide a useful benchmark, but your personal figure will depend on your lifestyle goals, existing savings, expected retirement date and other income sources.

How does Castle Trust help plan my retirement spending?

We build each client a personal Spending & Investing Plan that balances what you’ll spend with how your money is invested. It looks at how much you may need to save, whether you’re on track, how much income can be withdrawn in retirement and how your spending may change over time. We review and update the plan with you as your circumstances change.

Does spending change during retirement?

Often, yes. Many retirees spend more in the earlier years when they are travelling or pursuing hobbies. Spending patterns can change over time, which is why retirement planning should look at the whole retirement journey rather than focusing on a single year’s expenses.

Is NZ Super enough to live on?

Massey’s figures show that the retired households they studied spend more than NZ Super provides and supplement it with savings or other income sources. While some people do live on NZ Super alone, having additional savings generally provides more flexibility and choice.

Will my KiwiSaver be enough for retirement?

KiwiSaver can make a significant contribution towards retirement. If you’re starting later or aiming for a more comfortable lifestyle, financial advice can help identify any gaps and opportunities.

This is general information only. For personalised advice, please speak with a Castle Trust adviser.