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How much money do I need to save in order to retire?

In this article, you’ll learn about the lifestyle options available and how much they cost so you can begin to think about what sort of retirement you’re wanting to achieve.

Once you’ve retired, you will no longer be earning an active income i.e. physically working for your salary. All income will therefore be passive. 

For the purpose of this article, these passive incomes will be based on a single person, living alone, with no mortgage and the values are before tax.


Poverty lifestyle ($480 per week)

Let’s say you don’t have any Kiwisaver and solely live off the Superannuation money you get from the government. Superannuation is a retirement income granted to those 65 years and older by the New Zealand government.

If you have no other means of income, you’ll be entirely reliant on the government and changes, such as increases or decreases and eligibility the government may make to the Superannuation scheme. 

This passive income is enough to pay for food and basic needs, but nothing else. When unexpected costs come up, as they always do, you will most likely be unable to pay them.


Livable Lifestyle  ($960 per week)

This passive income should enable you to enjoy the basics in life (food and everyday expenses will be covered) with a few extras here and there. 

This income does limit travel (think domestic getaways if you save up) and it does mean money will be tight when unexpected costs come up. 


Comfortable lifestyle  ($1440 per week)

This lifestyle should enable you to live a relatively good life in retirement. 

Your essential costs are covered and you can have an entertainment budget for things such as going to the movies, eating out and doing regular activities with friends and family. Overseas travel will also be more attainable, however, some saving up will still be required.


Prosperous lifestyle  ($1920 per week)

This lifestyle will give you an array of choices. Your basic needs and more will be covered, unexpected costs such as medical treatments will be able to be paid for by yourself. 

You’ll be able to holiday like you’re in retirement! You’ll be able to take a holiday to Europe or America every year or take several trips to Australia and the Cook Islands.


Wealthy lifestyle   ($2,880+ per week)

This lifestyle will allow you to enjoy a high-level quality of living and you’ll be able to afford various holidays overseas, buy a boat or a new car, and various activities on the more expensive side with your family and friends. 


Fretting about your retirement plans? We can help. Book in a 15-minute financial coaching chat with us today. 

How Much Money do I Need to Save in Order to Retire Infographic

Keep in mind this article is providing general information and not individual financial advice.  

If you’d like a review of your situation and customized advice for building wealth to reach financial freedom and live a fulfilling life, please book a free 15-min chat.