Free Retirement Calculator for New Zealanders
Project where your savings will land at retirement and the income they can provide alongside NZ Super. The 4% drawdown rule sets a starting point for sustainable annual income from a balance.
Your retirement plan
Based on age 35, current savings $80,000, contributing $600/month at 5.5%.
About our Retirement Calculator
Nine-tenths of NZ retirement planning is mind-the-gap. NZ Super alone covers what Sorted calls a "no-frills" budget for most households. The "choices" budget, the version that includes a bit of travel and replacing the car when needed, runs $20,000-$30,000 a year higher than that, which most retirees fund from KiwiSaverKiwiSaverNZ workplace retirement savings scheme. From 1 April 2026, minimum employee and employer contributions are both 3.5% of gross pay (rising to 4% in 2028); the government adds 25c per $1, capped at $260.72/yr.View in glossary →, term deposits, or other personal savings. The calculator works backward from the lifestyle you want to the savings target you need.
The maths is the same compound-growth formula used everywhere else: starting balance grows at the assumed return, monthly contributions accumulate alongside, and after retirement the 4% rule estimates the annual drawdown the balance can support over a 30-year horizon.
Move the contribution slider to see how an extra $200 a month, sustained for 20+ years, changes the retirement balance by 30-40%. Move the retirement-age slider to see how five years either way reshape both the balance you reach and the years it has to fund.
How to use it
Enter your current age and your planned retirement age (the default is 65, when NZ Super starts). Enter your current savings balance (KiwiSaver plus any other retirement-allocated savings).
Enter your monthly contribution. For most NZ KiwiSaver members, this is your employee contribution plus the employer match, plus the $260.72 government top-up annualised. The take-home pay calculator can help work out the dollar figure if you only know your contribution rate.
Set the expected annual return. The default 5.5% reflects a long-run balanced KiwiSaver fund pre-fee. The result panel shows the balance at retirement, the 4%-rule annual income that balance supports, your total contributions over the period, and investment returns.
Why use it
The single most useful question this calculator answers is whether your current savings rate gets you to a retirement income you can live on. The 4%-rule annual income, plus NZ Super, gives a household total to compare against the Sorted "choices" budget for your situation.
If the gap is large, contribution rate is the most controllable lever in your 30s and 40s. Bumping KiwiSaver from 3.5% to 6%, or adding non-KiwiSaver savings, compounds across the remaining years and can close a meaningful share of the gap.
For someone within five years of retirement, the levers shrink. The starting balance is mostly fixed, contributions over five years cannot move the needle much, and the most sensible question becomes whether the fund is appropriately conservative for the proximity to drawdown. The calculator does not advise on fund choice, but the FMA-published returns by category are the right NZ-specific reference for thinking about it.
The maths behind it
Retirement balance = B(1+r)n + M × ((1+r)n − 1) ÷ r | Annual income ≈ Balance × 4% B is current savings, M is monthly contribution (annualised), r is the annual return rate, n is years to retirement. The first term grows the existing balance; the second is the future value of the contribution stream. The 4% rule, popularised by US-based research and adapted by Te Ara Ahunga Ora Retirement Commission, suggests a starting drawdown of 4% of the retirement balance, indexed for inflation, gives a high probability of the savings lasting 30 years. Lower rates (3-3.5%) are more conservative; higher rates increase the chance of running out.
Worked example
Liam, dairy farmer in Cambridge, age 45 with $185,000 in retirement savings, planning 20 years to age 65.
Liam saves $1,200 a month into a balanced KiwiSaver fund, in addition to the $185,000 he has already accumulated. He plans to retire at 65 with his partner Steph, who has a similar balance.
At a 5.5% average annual return, the $185,000 grows to about $540,000 over 20 years. The $1,200 monthly contributions add another $523,000 over the same period, giving a balance at 65 of $1,063,000.
Applying the 4% rule, his balance can support roughly $42,500 a year of inflation-indexed drawdown for at least 30 years (high probability). With NZ Super for a couple adding another $48,000-$50,000 a year combined, their household income at retirement lands near $90,000.
If Liam contributed $400 a month less ($800 instead of $1,200), the final balance drops to $890,000 and the 4% rule income drops to $35,600. Adding $400 a month more ($1,600) lifts the balance to $1,235,000 and the income to $49,400. The contribution rate is the most controllable lever for someone in their 40s.
Things to keep in mind
- The 4% rule is an illustrative starting point. It is based on US-market historical research adapted for NZ conditions by Te Ara Ahunga Ora Retirement Commission. Real-world drawdown depends on fund composition, market conditions in the early retirement years, and individual longevity. Many NZ retirees prefer a 3-3.5% starting rate for added safety.
- Sequence-of-returns risk. A poor run of returns in the first five years of retirement does more damage to the long-run sustainability of a drawdown than the same returns later, because the early withdrawals come from a smaller pot. Holding more conservative funds in the lead-up to retirement is one common response.
- Returns are not guaranteed. The 5.5% default reflects a long-run balanced fund average. Real annual returns swing year to year; growth funds carry higher long-run averages but bigger swings. The FMA publishes audited KiwiSaver returns by category as a NZ-specific reference.
- <span class="term" tabindex="0" aria-describedby="term-tip-kiwisaver">KiwiSaver<span class="term__tip" role="tooltip" id="term-tip-kiwisaver"><strong>KiwiSaver</strong><span class="term__tip-def">NZ workplace retirement savings scheme. From 1 April 2026, minimum employee and employer contributions are both 3.5% of gross pay (rising to 4% in 2028); the government adds 25c per $1, capped at $260.72/yr.</span><a href="/glossary/#kiwisaver" class="term__tip-link">View in glossary →</a></span></span> is not the only path. KiwiSaver is the most common NZ retirement vehicle, but term deposits, managed funds outside KiwiSaver, residential property, and direct-share portfolios all play roles in NZ retirement planning. The calculator handles any savings vehicle, as long as you input the relevant return rate.
- Inflation matters more than usual at retirement. A nominal $1,000 a week sounds the same in 1995 and 2025, but the 1995 figure buys roughly twice as much. The calculator works in nominal dollars; subtract NZ’s 2-3% inflation assumption from the return rate to see the real-purchasing-power figure.
NZ-specific notes
FAQs
How much do I need to retire?
There is no single number; it depends on your target lifestyle and how much NZ Super covers. A common starting point is to aim for a retirement balance that, drawn at 4% per year, plus NZ Super, matches your "choices"-budget target from the Sorted research. For a couple in 2026, that often lands at $400,000-$700,000 of personal savings on top of NZ Super.
What return rate should I use?
Long-run NZ balanced fund returns have averaged 5-7% per the FMA’s audited reports. Conservative funds sit around 3-4%, growth funds 7-9%. Subtract your fund’s annual fee (1% is typical) and any tax leakage for a more accurate net figure. Many planners use 5.5% as a balanced-fund pre-fee assumption, which is the calculator’s default.
How does NZ Super factor in?
NZ Super is paid for life from age 65 (subject to the residency test) at a fixed fortnightly rate, indexed to wage growth. The calculator shows your private savings balance and the "4% rule" income separately, then adds NZ Super to give a household total. Use the NZ Super calculator for the Super-side figures by living situation.
What if I retire earlier than 65?
NZ Super does not start until 65 regardless of when you stop work, so your private savings have to fund both the gap years and the retirement years afterwards. Push the retirement-age slider down on the calculator and the balance you have at retirement drops, while the years-to-fund range goes up. Most planners model an early-retirement bridge separately from the post-65 phase.
Should I use my KiwiSaver as my primary retirement vehicle?
KiwiSaver is the default and the only vehicle with the employer match and government contribution. Most NZ retirement plans build around KiwiSaver as the core, with term deposits, managed funds, or residential property layered on top. The calculator does not advise the mix; it works for any combined savings figure.
How accurate is the 4% rule for NZ?
It was developed for US data and adapted by Te Ara Ahunga Ora Retirement Commission for NZ context. The rule has held up reasonably well in NZ-specific simulations for balanced funds, with one caveat: if early-retirement returns are poor, the rule can run a fund out faster than 30 years. Many planners use 3-3.5% as a more conservative starting drawdown rate.
What about inheritance or downsizing my home?
Both can substantially supplement a retirement plan. The calculator does not model an inheritance windfall or a downsizing event; layer those in by re-running with the increased balance once they crystallise. A typical NZ "downsize gain" of $200,000-$400,000 from selling a family home and buying a smaller property can lift the 4%-rule income by $8,000-$16,000 a year.
References & sources
- Te Ara Ahunga Ora Retirement Commission, "Retirement expenditure research". retirement.govt.nz
- Work and Income, "Benefit rates at 1 April 2026 (NZ Super)". workandincome.govt.nz
- Financial Markets Authority, "KiwiSaver annual report (audited returns)". fma.govt.nz
- Stats NZ, "Life expectancy". stats.govt.nz