The latest Retirement Expenditure Guidelines (Massey University, 2025) are out, and while retirees may need much less than seven figures to live comfortably in retirement, many will still need to supplement their NZ Super to maintain a comfortable lifestyle.
The Guidelines show the lump sum needed on top of NZ Super ranges from around $118,000 for a modest, no-frills retirement in a metro area, up to just over $1 million for a more comfortable lifestyle with travel, dining out, and discretionary spending — especially in bigger cities.
However, the key takeaway is that for most Kiwis, relying solely on NZ Super won't be enough. Planning and supplementing with additional savings and investments — like KiwiSaver — will be essential to securing financial comfort in retirement.
The rising costs of retirement
The guidelines highlight that while inflation has slowed, the cost of living remains a key challenge for retirees. Housing, utilities, transport, and insurance costs continue to rise, making it even more crucial to have savings in place.
One of the biggest concerns for retirees is the "fear of running out" (FORO) — the anxiety that their savings won't last their lifetime. Massey University's report shows that many retirees are already adjusting their spending habits, cutting back to ensure their savings stretch further. As report author Associate Professor Claire Matthews puts it, "You can't just sleepwalk into retirement, you've got to plan for it."
What does retirement really cost?
The guidelines break down spending into two categories: "no frills" (a basic standard of living) and "choices" (a more comfortable lifestyle with some luxuries).
Here's what a two-person household can expect to spend per week:
"No frills" retirement:
"Choices" retirement:
In comparison, the current NZ Super payment for a couple is $828.34 per week after tax (from 1 April 2025) — meaning most retirees will need additional savings or investments to top up the shortfall to maintain their desired lifestyle.
If you're in a two-person household living in one of the main city centres, you'll need to supplement your NZ Super with additional income sources, such as your KiwiSaver savings.
How much do you need to save?
The updated research also provides insights into the lump sums needed on top of NZ Super to fund retirement.
"No frills" retirement:
"Choices" retirement:
While some people do manage on NZ Super alone, for most, these figures reinforce the importance of active saving and planning.
KiwiSaver: your best friend for retirement savings
KiwiSaver is one of the easiest ways to build up your retirement nest egg. No matter if you're just starting out in your career or getting close to retirement, checking in on your KiwiSaver account can make a big difference. Even small tweaks, like increasing your contributions or choosing the right fund, can have a big impact over time.
What can you do today?
Retirement is meant to be enjoyed, whether that means travelling, spending time with loved ones, or just living stress-free. The key is to start planning now.
How Hive can help
We're here to help you get the right plan in place. Talk to your Adviser or contact Hive to speak with a KiwiSaver specialist.
