Most of us daydream about the day we finally finish work and retire. Whether you dream of traveling the world, campervanning throughout New Zealand, pottering about the garden, or improving your golf skills, the magic question is - How much do you need to make your retirement dreams a reality?
According to International Retirement Standards, to have a ‘comfortable’ retirement, single people will need $594,000 in retirement savings, and couples will need $697,000. You can use this guide to estimate how much money you’ll need to have a ‘comfortable’ or ‘modest’ retirement lifestyle. See the box below for more information.
The Standard is updated four times a year to take into consideration the rising price of items like food and utility bills, as well as changing lifestyle expectations and spending habits. The Standard includes the cost of things such as health, communication, clothing, travel and household goods.
International Retirement Standards
| Lifestyle |
Comfortable |
Modest |
New Zealand Government Super |
| Single |
$46,554 a year |
$29,794 a year |
$20,846 a year |
| Couple |
$65,594 a year |
$42,841 a year |
$32,070 a year |
 |
Replace kitchen and bathroom over 20 years |
No budget for home improvements. Can do repairs, but can’t replace kitchen or bathroom |
No budget to fix home problems like a leaky roof |
 |
Better quality and larger number of household items and appliances and higher cost hairdressing |
Limited number of household items and appliances and budget haircuts |
Less frequent haircuts or getting a friend to cut your hair |
|
|
Can run heating |
Need to watch utility costs |
Less heating in winter |
|
|
Restaurant dining, good range & quality of food |
Take out and occasional cheap restaurants |
Only club special meals or inexpensive takeaway |
 |
Replace kitchen and bathroom over 20 years |
No budget for home improvements. Can do repairs, but can’t replace kitchen or bathroom |
No budget to fix home problems like a leaky roof |
 |
Fast internet connection, big data allowance and large talk and text allowance |
Limited talk and text, modest internet data allowance |
Very basic phone and internet package |
 |
Good clothes |
Reasonable clothes |
Basic clothes |
 |
Domestic and occasional overseas holidays |
One holiday in Australia or a few short breaks |
Even shorter breaks or day trips in your own city |
 |
Top level private health insurance |
Basic private health insurance, limited gap payments |
No private health insurance |
 |
Owning a reasonable car |
Owning a cheaper more basic car |
No car or, if you have a car, it will be a struggle to afford repairs |
 |
Take part in a range of regular leisure activities |
One leisure activity infrequently, some trips to the cinema or similar |
Only taking part in no cost or very low cost leisure activities. Rare trips to the cinema |
Many of us will spend more than a quarter of our life retired, as people are now living until an average age of 86 years (if you’re male) and 89 years (if you’re female). And life expectancy is expected to rise to 91 for males and 93 for females by 2050. So, you might need a lot more money for your retirement than you think. Unless you’re counting on a lotto win or growing your own personal money tree, your superannuation savings can help you enjoy your retired days by allowing you to maintain a good standard of living, which isn’t achievable by receiving just New Zealand government super.
For more information, see the New Zealand government super page here.
