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By age 65 New Zealanders would need to accumulate between $46,000 and $516,000 to maintain respective barebones or fleshed-out post-work lifestyles on top of the government pension, according to the latest Massey University ‘Retirement expenditure guidelines’. The annual Massey cost-of-retirement report shows singles living in the sticks would require an extra $42.33 each week above current NZ Super payments to sustain even a ‘no-frills’ budget, implying a lump-sum savings target of $46,000 at age 65. Couples enjoying a high-end – or ‘choices’ – lifestyle would need to accrue joint savings of just over $1 million by retirement age to generate income of more than $950 between them each week as well as drawing the pension. The study found a frill-less retirement alone in the provinces requires only about a quarter of the savings compared to metropolitan counterparts while the choices version for singles comes with about equal lump-sum targets in both city and region. Somewhat counterintuitively, retirement couples roughing it in provincial NZ need to save about double the amount of their big-smoke equivalents. But the calculation reverses for the choices couples where metro retirement comes with an estimated joint savings target of $1 million-ish while those outside the big cities can get by with a combined $450,000. However, the 14th annual Massey report provides a nuanced take on estimated retiree costs across variables including accommodation status (mortgage-free home-owner, renter or retirement village-dweller etc) and the potential impact of KiwiSaver. The study, headed by Massey associate professor Claire Matthews, offers “insights into actual spending levels among retired New Zealanders but do not assess the adequacy of NZ Superannuation”. Aside from quantifying current retirement expenses (including the impact of inflation), the report highlights “the importance of proactive financial planning, especially for those renting or considering retirement villages, where costs and legal arrangements can be complex”. Nick Hakes, chief of Financial Advice NZ (FANZ) – sponsor of the 2025 Massey study – says in the report that the “data and insights in this report empower advisers to deliver advice that is not only technically sound but deeply relevant to the lived experience of retirees”. He says the latest release comes as the 65-plus NZ population is set to hit the one million mark in almost two years, underpinning strong demand from advisers and retirees for “robust and realistic view of retirement living costs across different household types and regions”. “The Guidelines are more than just numbers – they are a reflection of real lives, real choices, and real futures,” Hakes says. “They help bridge the gap between aspiration and affordability, enabling New Zealanders to plan with purpose and retire with dignity.” Produced by the Massey University Fin-Ed Centre, the guidelines rely on the triennial Statistics NZ Household Economic Survey data last collected for the year ending June 30, 2023 – inflation-adjusted for the following two years.
