Seven steps to saving for a comfortable retirement

Everyone’s idea of a comfortable retirement is different. How much you might need can depend on where you live, whether you rent or own your home, and the kind of lifestyle you want.

There’s no magic number to aim for, but research can offer a useful starting point. The Retirement Expenditure Guidelines, produced by Massey University’s Financial Education and Research Centre, outline typical costs for different retirement lifestyles and are kept up to date.

These figures aren’t targets or rules — they’re simply a way to understand what different lifestyles can cost. Visit massey.ac.nz to find the latest guidelines.

New Zealand has a universal retirement pension (NZ Super) that's paid to eligible Kiwi from age 65. This could provide you with a safety net and help cover the basic cost of living.

Take a look at Work and Income to make sure you're eligible and to see the current rates of payment.

One way you could build retirement savings is through KiwiSaver, by setting aside a percentage of your pay while you’re working. You can choose how much to contribute and add extra whenever it suits you.

If you’re employed, your employer usually contributes as well, and if you’re eligible, the government adds a yearly contribution.

It’s worth reviewing your KiwiSaver by checking your current balance, considering whether to change your contribution rate, and reviewing the type of fund you’re in. Lower and higher risk funds suit different timeframes and preferences.

KiwiSaver contributions will change again in April 2028. Find out more.

KiwiSaver is designed to support long‑term saving for retirement, so your money is usually locked in until you turn 65.

There are some situations where you may be able to access part or all of your savings earlier, including:

• Buying your first home
• Serious illness or significant financial hardship
• Permanent emigration
• Certain life‑shortening conditions

These rules help protect your retirement savings while recognising that life doesn’t always go to plan.

Retirement savings don’t have to sit in just one place. You may choose to spread your money across different savings and investment options to give yourself more flexibility and choice.

This could include:

• Managed Funds provide flexibility to invest over time and access your money when you need to
• Term deposits offer a lower-risk option with fixed returns over a set period
• Savings accounts make it easy to access your money while earning interest.

What works best for you will depend on how long you’re saving for, how comfortable you are with risk, and what you want your money to do. If you’d like to explore this more, Sorted's Investor Kickstarter tool can help.

Carrying fewer regular repayments in retirement can make day‑to‑day costs easier to manage and give you more flexibility.

If you own your house, can you aim to be mortgage-free by the time you retire? Read our tips for how you can get mortgage-free faster. You’ll still have costs like rates, insurance and maintenance, just without rent or mortgage payments alongside them.

Try our mortgage repayment calculator to see how quickly you could pay off your home loan, and how much of a difference even small increases in your repayments could make.

Use tools to see how your savings could support the retirement you want and what you might want to change along the way.

Sorted has a retirement planner to help you see your projected savings and explore different scenarios.

Many KiwiSaver providers also offer calculators so you can see how your balance could grow over time.

If you're a member of the Fisher Funds KiwiSaver Plan, you can use tools within Fisher Funds Online to estimate your retirement income and see how changes — like contributing more or adjusting your settings — could make a difference.