When 49-year-old Christchurch mechanic Jamie Ruru tore a tendon in his shoulder last year, he realised he might not want — or be able — to work until 65. “I always thought early retirement was for rich people,” he says. “But now I’m wondering what it actually takes to stop at 50 or 55.”
He’s not alone. With the Government confirming in 2025 that the NZ Super age will stay at 65, more New Zealanders are now recalculating what they personally need to retire comfortably — especially if they plan to finish before NZ Super kicks in.
This in-depth guide breaks down how much you need to retire comfortably at ages 50, 55, 60, and 67, based on realistic lifestyle expectations and 2025 cost-of-living data.
Why Early Retirement Costs So Much More
Retiring early means:
- More years living off savings
- No NZ Super until 65
- Higher health costs in later years
- Needing a larger buffer for inflation
- More risk of outliving your savings
Financial adviser Mark Henare explains, “The difference between retiring at 50 and 67 can easily be over a million dollars. The earlier you stop working, the more your savings have to stretch across decades.”
Comfortable Retirement: What Does It Mean in NZ?
For this article, comfortable means:
- Ability to cover housing, food, transport
- Modest travel (one overseas trip every 2–3 years)
- Occasional dining out
- Reasonable health and insurance cover
- Maintaining a car
- Ability to replace appliances and cover emergencies
Average annual spending for a “comfortable” lifestyle in 2025 is estimated at:
- Single: $42,000–$48,000 per year
- Couple: $58,000–$72,000 per year
These figures assume you are mortgage-free. If you’re still renting or paying a mortgage, your savings need to be much higher.
How Much You Need to Retire at 50, 55, 60, and 67
Below are recommended lump-sum targets for a comfortable retirement starting at each age, assuming:
- 3% inflation
- 4.5% annual investment return (balanced fund)
- Spending:
- $45,000 a year (single)
- $65,000 a year (couple)
- NZ Super starts at 65
- Money must last to age 90
Retiring at 50 (15 Years Before NZ Super)
Single: $1.35–$1.55 million
Couple: $1.95–$2.25 million
Why so high?
You must self-fund 15 years before NZ Super begins, plus another 25 years alongside NZ Super.
Key Challenges:
- Longest period of drawdown
- Markets must perform well
- Private insurance costs high in early retirement
- Must plan carefully for health events
Retiring at 55 (10 Years Before NZ Super)
Single: $1.05–$1.20 million
Couple: $1.55–$1.75 million
You avoid the most expensive early-retirement period (50–55), but still need savings to cover 10 years without NZ Super.
Financial planner Tessa Morrell says, “55 is the new dream target for many KiwiSaver members — but only if they’ve invested aggressively in their 30s and 40s.”
Retiring at 60 (5 Years Before NZ Super)
Single: $750,000–$900,000
Couple: $1.05–$1.25 million
This is the most common early-retirement target in NZ.
Why?
Because KiwiSaver is growing steadily, homeownership rates are high in the 55–70 bracket, and only five years need to be self-funded before 65.
Your NZ Super from 65 onward significantly reduces required savings.
Retiring at 67 (After NZ Super Begins)
Many Kiwis continue part-time work after 65, but if you want full retirement at 67, your needs change.
Single: $300,000–$450,000
Couple: $450,000–$650,000
These amounts sit on top of NZ Super:
- Single living alone on NZ Super: ~$28,000–$30,000/year
- Couple on NZ Super: ~$43,000–$45,000/year combined
Your private savings cover lifestyle extras, upgrades, travel, and emergency costs.
Full Comparison Table (2025 Estimates)
| Retirement Age | Single Needed | Couple Needed | Years of Self-Funding Before NZ Super |
|---|---|---|---|
| 50 | $1.35m–$1.55m | $1.95m–$2.25m | 15 years |
| 55 | $1.05m–$1.20m | $1.55m–$1.75m | 10 years |
| 60 | $750k–$900k | $1.05m–$1.25m | 5 years |
| 67 | $300k–$450k | $450k–$650k | 0 years (NZ Super already active) |
What Real New Zealanders Are Doing
Case Study: “We’re aiming for 55” — Hamilton Couple
Amelia and Pita, both 42, started maxing out their KiwiSaver contributions (10%) and investing in a growth fund.
“We want choices,” Amelia says. “If we hit our 55 target, great — if not, 60 is okay too.”
They track their investment plan monthly and expect to reach around $1.6m by their mid-50s.
Case Study: Retiring at 60 After a Health Event
Kāpiti Coast resident Owen H., 58, plans to retire at 60 due to chronic knee issues.
“I won’t be able to work much longer,” he says. “Knowing I need around $800,000 gives me a clear target.”
Expert Opinions: Are These Numbers Realistic?
Westpac retirement strategist Sarah Ng says yes — and warns that waiting too long to plan is the biggest mistake.
“You don’t need millions at 30,” she says. “But by 45, your strategy must be deliberate. Balanced and growth funds give the best long-term results, especially for early retirement.”
AUT economist Dr. Pania Corbett adds:
“Few New Zealanders can stop at 50 without property wealth or inheritance. But retiring at 60 or 67 is very achievable with disciplined KiwiSaver contributions.”
What You Should Do Now (2025 Action Steps)
1. Check Your KiwiSaver Fund Type
Growth funds generally produce higher returns over decades.
2. Increase Contributions if Possible
Even raising from 3% to 6% can add tens of thousands over 20 years.
3. Build a Multi-Stage Plan
Break your plan into:
- Pre-retirement (earning)
- Gap years before NZ Super
- NZ Super years
4. Aim to Be Mortgage-Free
This is the single biggest factor in retiring early.
5. Plan for Healthcare Costs
Health insurance rises sharply after 55 — budget accordingly.
6. Recalculate Every Year
Markets change. Inflation changes. Your plan should adapt too.
7. Protect Yourself With Emergency Savings
Keep 6–12 months of expenses separate from retirement investments.
Q&A: Your Top Questions on Early Retirement in NZ
1. Can I retire at 50 in New Zealand?
Yes, but you’ll likely need over $1.3–$1.5 million as a single person.
2. Do I get NZ Super before 65 if I retire?
No — NZ Super starts at 65 regardless of when you stop working.
3. Does KiwiSaver pay out before 65?
You can withdraw at 65 (or earlier if eligible for early retirement via hardship or medical grounds).
4. Do these numbers assume I own my home?
Yes. Renting requires significantly more savings.
5. What if I retire early but still earn small income?
Even part-time income dramatically reduces how much savings you need.
6. Are these estimates for 2025 only?
Yes — based on 2025 inflation, wage, and cost projections.
7. Should I switch to a conservative fund before retiring?
Usually yes, but only 2–5 years before you need withdrawals.
8. What’s the average KiwiSaver balance at 65?
Around $200k–$250k for people retiring in the mid-2020s.
9. Are couples better off retiring early?
Yes — they can share costs and reduce total required savings.
10. Will NZ Super increase in the future?
It usually rises with wages and inflation, but rules stay the same in 2025.
11. Does having overseas work affect my early-retirement plan?
It can — overseas pensions may reduce NZ Super, so plan accordingly.
12. Should I pay off my mortgage or invest?
Most advisers prioritise becoming mortgage-free before 55.
13. What if inflation rises?
Your required retirement amount increases — recalc annually.
14. Can I retire with $500,000?
Yes — but usually only at 65+ with NZ Super.
15. What’s the most realistic early-retirement age for NZ workers?
Most financial planners say 60 is the sweet spot.
