Mid scenario

Here, you maintain the same purchasing power throughout retirement.

What you spend your money on may change. At 65, you might spend more on travel. Later in retirement, more could go towards healthcare or retirement-village costs. But your overall lifestyle doesn't deliberately reduce.

High scenario

Here, you aim to live off the income your investments produce without spending down the original capital.

This does mean you need a lot more saved. For example, a couple spending $90,000 a year might need around $1.8 million, compared with $996,000 under the mid scenario.

Some property investors aim to do this by building a portfolio of high-income properties with little debt. 

The goal is to create enough rental income to fund their retirement while keeping their assets intact.

What affects how much you need to retire in NZ?

There are five big decisions that determine how much money you'll need when you retire.

These explain why one couple might retire comfortably with less than $1 million while another wants $2 million or more.

#1 – How much do you want to spend?

This is the biggest one.

The more you want to spend each year, the more wealth you'll generally need when you retire.

For instance, our mid-range estimate for a couple spending $92,600 a year is about $996,000.

At $100,000 a year, that rises to around $1.2 million.

At $150,000 a year, it's around $2.2 million.

So before asking, “How much money do I need to retire?” it helps to first ask, “What sort of retirement do I actually want?”

#2 – Do you want your spending to keep up with inflation?

The things you buy tend to get more expensive over time. That's inflation.

But that doesn't necessarily mean your retirement spending has to rise at exactly the same rate.

Research from the New Zealand Society of Actuaries suggests retirees often reduce their spending as they age. 

You might travel more at 65 and less at 90.

If you're comfortable gradually buying less stuff as you age, you won’t need to save as much to retire.

But if you want your spending power to remain consistent throughout retirement, you'll need more money.

#3 – How long does your money need to last?

The longer you live, the longer your savings need to last. 

Someone retiring at 65 and planning until 90 needs to fund 25 years of spending. If you want your money to last until 95 or 100, you'll need more.

You don't know exactly how long you'll live, of course.

But you need to consider how long you might live when you build a retirement plan.

Similarly, let’s say you and your partner have a 6-year age gap. You’re 65, and your partner is 59. 

You decide that you both want to retire at the same time, so you can enjoy retirement together. 

The younger partner might live an extra 6 years longer than the older partner.

So, your savings need to fund more years in retirement, which means you need more money.

#4 – Are you single or in a couple?

Couples generally need more money overall because there are two people to support.

But they don't necessarily need twice as much.

That's because couples share many costs – like housing, electricity, internet and rates.

They also receive a higher combined amount of NZ Super than a single retiree.

So couples generally need more retirement savings overall, but less per person.

#5 – Do you want to preserve your nest egg?

This is one of the biggest differences between our low, mid and high estimates.

Some investors want to spend their savings throughout retirement.

Maybe they’d prefer to leave their family home or other assets as an inheritance.

Others want to live mainly off their investment returns and preserve their underlying assets.

Preserving your wealth throughout retirement takes a lot more money than just spending it.

For example, a couple spending $100,000 a year has a mid-range retirement target of around $1.2 million in our modelling.

But under the high scenario – where they preserve their capital – that increases to around $2.2 million.

Is NZ Super enough to retire on?

For many retirees, NZ Super alone won't cover the spending levels shown in Massey's research.

From 1 April 2026, a couple who both qualify for NZ Super receive a combined $1,708.16 a fortnight after tax.

That's about $44,400 a year.

That's less than Massey's estimate for a No Frills couple, who spend roughly $49,000–$55,000 a year.

That doesn't mean it's impossible to live on NZ Super.

Some retirees do.

But you'll have a much tighter budget and less room for unexpected costs and spending on the things you enjoy.

If you want a more comfortable lifestyle, you'll generally need savings, investments or other income to top up NZ Super.

What do the different retirement lifestyles look like?

Now let's put some flesh on the numbers.

These aren't rigid definitions. They're examples designed to help you think about the lifestyle you want and what that could mean financially.

NZ Super lifestyle – around $40,000–$45,000 a year

At this level, you're relying entirely on NZ Super.

From April 2026, a couple who both qualify receive roughly $44,400 a year after tax at the M rate.

You won't need a large investment portfolio to top up your income if you can genuinely keep your spending around that level.

But your budget will be tight.

There will be less room for travel, large purchases and unexpected expenses.

No Frills lifestyle – around $48,700 a year

This No Frills lifestyle covers the basics but leaves relatively little room for extras.

At this level, NZ Super covers most of your spending, but you may still want savings or investments to bridge the gap and cover larger one-off costs.

In our modelling, you could need around $20,000–$206,000 at 65 depending on how you structure your retirement.

Our mid-range estimate is around $119,000.

Choices lifestyle – around $92,600 a year

This is where retirement becomes much more comfortable.

Provided you own your home without a mortgage, you have money for more to spend on the things you love, and the occasional holiday.

But you're now spending substantially more than NZ Super provides.

Our modelling suggests a couple could need around $630,000–$1.8 million to fund this lifestyle.

The mid-range estimate is around $996,000.

Well-off lifestyle – around $100,000 a year

At $100,000 a year, you have even more choices.

You might travel overseas more, or spend more on hobbies. But overall, you’ll keep a relatively high standard of living after you stop working.

This is the sort of lifestyle many investors we work with at Opes Partners aim for.

But how much would you need saved to spend $100,000 a year in retirement?

Our estimates range from around $795,000 to $2.2 million, with a mid-range estimate of $1.2 million.

Affluent lifestyle – around $150,000 a year

At $150,000 a year, you have significantly more flexibility.

You can travel frequently, upgrade cars more often and have more capacity to pay for private healthcare or other large expenses.

But funding $150,000 of spending every year for 25+ years requires substantial assets.

Our estimates range from around $1.6 million to $4.1 million, with a mid-range estimate of $2.2 million.

Contribution lifestyle – $200,000+ a year

Very few retirees will spend $200,000+ every year.

But for those who can afford it, this level of income provides the ability not just to spend more on themselves, but to help others.

You might give money to family, support charities, or make large purchases without significantly changing your lifestyle.

Our estimates range from around $2.5 million to $6.1 million, with a mid-range estimate of $3.3 million.

How does the cost of retirement vary around New Zealand?

Where you live can affect how much you spend in retirement.

Massey's 2025 data shows a retired couple with a Choices lifestyle spends about $92,600 a year in a main city, compared with about $64,700 outside the main cities.

But it's not always cheaper outside the main cities. For No Frills households, the provincial figure is actually higher.

So where you live matters, but so does the lifestyle you choose.

Which retirement lifestyle should I choose?

You need to balance the retirement you want with what you're prepared to do to get there.

You might look at the Contribution lifestyle and think, “Of course I want to spend $200,000 a year.” Most people would.

But a bigger retirement goal generally means saving and investing more while you're working. And there's a trade-off. If you invest more today, you have less money to spend today.

You also need to decide what you want to happen to your investments once you retire.

Some people want to build up enough assets to live off the income those assets produce, without spending the capital. Others are happy to sell investments over time and use that money to fund their retirement.

Here's what that can look like in practice.

Tanya retires on $82,200 a year

Tanya already owned two investment properties when we first met. Over the following years, she bought another two.

In 2021, she sold those four properties and used the money to buy two high-income apartments without a mortgage.

The apartments now generate around $1,500 a week in rent before tax. Combined with NZ Super, that gives Tanya about $82,200 a year to spend.

The important part is that she's primarily living off the income from her assets … rather than deliberately spending down the capital.

Her retirement is therefore closer to our high scenario.

Bruce and Carol gradually sell their investment properties to fund retirement

Bruce and Carol also used property to build their retirement wealth, but they planned to spend the assets over time.

By the time Bruce reached 65, their properties had increased in value and they'd paid down some of the debt.

They sold one property and set aside $57,000 to fund that year's retirement spending. They then invested in the rest in a managed fund. They'll then keep using the money in the fund for their living costs. Then once they run out, they’ll sell another investment property.

Combined with NZ Super, this gives them close to $100,000 a year to spend – roughly our Well-off lifestyle.

Unlike Tanya, they're comfortable gradually spending down their investment wealth. This is because they still expect to have their family home to leave to their children.

Neither approach is necessarily better. The right one depends on the retirement you want and whether you want to preserve your investment wealth or use it to fund your lifestyle.

So, how much do you really need to retire in NZ?

Start by choosing a realistic annual retirement income rather than picking a random savings target. 

Massey University's 2025 data suggests a retired couple might spend roughly $49,000–$55,000 a year for a basic lifestyle, or around $65,000–$93,000 for a more comfortable one.

But the amount you need saved also depends on:

• how long your money needs to last
• whether your spending keeps pace with inflation
• whether your spending will fall as you age
• whether you're prepared to spend your savings
• whether you want to leave an inheritance.

That's why two couples wanting exactly the same $100,000 annual lifestyle could need very different amounts invested.

The key is to work backwards. First decide what you want retirement to look like. Then calculate how much income that lifestyle requires and what you need to save and invest to create it.