What’s your retirement number and why you should care now
Retirement might feel like a distant dot on the horizon, something for “future you” to think about. But the earlier you start planning, the more flexibility and freedom you’ll have later. Whether you’re just starting out or already mid-career, having a plan gives you options, and options are powerful.
Your retirement number is the lump sum you’ll need to live the life you want once you stop working. Massey University’s 2025 Retirement Expenditure Guidelines show that while New Zealand Super helps, it’s not enough on its own. For example:
- A two-person household in a provincial area living a “no frills” lifestyle spends around $1,031.85 per week.
- For a “choices” lifestyle (think travel, hobbies, and a bit more comfort), that jumps to $1,210.18 per week.
The power of time in retirement saving
Compound interest is more than a financial concept; it’s the engine behind long-term wealth. The earlier you start investing, the more time your money has to grow, earning interest on interest.
- Starting in your 20s or 30s? You’re giving your future a head start.
- Starting in your 50s? You’re playing catch-up, and that means saving more, faster, and smarter.
Your retirement number isn’t just a guess, it’s a goal, and time is the most valuable asset in reaching it.
How to get started
- Know your number and what kind of retirement lifestyle you are aiming for: Use retirement calculators or talk to a financial adviser to estimate what you’ll need.
- Make a plan to know how you’ll get there: Set clear goals and automate your savings. Are you relying on KiwiSaver, downsizing your home, selling your business, or expecting an inheritance? Knowing your strategy helps you stay on track.
- Review regularly: Life changes, so should your plan. Make it a habit to review your KiwiSaver annually.
- Get advice: A good financial adviser (like us!) can help you navigate the options, avoid common pitfalls, and stay on track.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
