26 Jan 2022

Hundreds of thousands in savings needed to retire: guidelines

From Nine To Noon, 9:32 am on 26 January 2022
Most retirees will eventually rely on superannuation.

Photo: 123RF

Warnings we can't afford to retire unless Kiwis save up to $800,000 to top up the pension are coming from a research centre interested in improving the financial wellbeing of New Zealanders.

The latest Retirement Expenditure Guidelines from the New Zealand Financial Education and Research Centre say must expect to finance retirement over and above that which NZ Super affords retirees.

The guidelines, produced annually, and based on Stats NZ data, calculate what retirees currently spend to maintain either a 'no frills' retirement, or a 'choices' lifestyle that includes some luxuries, calculating an extra $809,000  is needed to fund a 'choices' lifestyle for a couple living in a city. $511,000 would help for a couple living in the regions.

Report author, Associate Professor Claire Matthews is from the Massey Business School, where the guidelines were produced speaks with Kathryn Ryan, along with Palmerston North retiree Mal Stone.