The first step in creating the retirement you want is getting an idea of how much you might need to save. This will vary from person to person – what lifestyle you want, where you live, if you rent or own your home and if you’re single or coupled up.
Although there’s no set magic number to work towards, there are ballpark figures out there to give you an idea of what to work towards, such as the Retirement Expenditure Guidelines which is produced each year by the Westpac Massey Fin-Ed Centre. In 2019, this research showed that a two-person household living in a city would need to have saved $493,000 for a no-frills lifestyle – this would provide enough for a basic standard of living with few, if any, luxuries. To achieve a ‘choices’ lifestyle, which would fund a more comfortable standard of living including more luxuries or treats, a city-based couple would need a retirement nest egg of $787,000.