Milford on The Hits: 15 July 2026

So, let's get into it.

Why is it risky to wait for the government or a political party to tell you how much you should be saving?

Yeah, it's a good question.

I think it's very topical at the moment as we head into an election and a number of the parties have come out with KiwiSaver policy and I think more will follow.

But ultimately, you know, governments can help create a framework for retirement savings and KiwiSaver is a great example of that.

But they can't tell you what retirement will cost for you personally.

Policies change, political priorities change and everyone has different goals and lifestyles.

So if you rely solely on a government target, you could end up saving too little or even more than you need.

and i think the safest approach is just to work out your own retirement needs and then build a plan around them

okay easier said than done though what does it actually mean for people to do your own numbers what does that look like when you're planning for your retirement

yeah you're right easier said than done um doing your own numbers it means estimating the lifestyle you want in retirement and then putting a dollar figure around it so you have to think about housing costs, travel plans, hobbies, healthcare needs, day-to-day spending.

Then compare those costs with expected income sources like NZ Super, KiwiSaver, and any other investments that you might have.

It's about understanding your personal gap and making a realistic plan to close that gap.

And depending on how much you save or invest whilst working, you can actually set yourself up to earn more than you currently do once you're retired.

Now whether or not you need a pay rise when you retire, that's another question.

It's based on what sort of lifestyle you're targeting.

But just to give you an example, you know, currently a 30 year old in New Zealand has an average KiwiSaver balance of about $26,000 and they earn a medium gross income of roughly $1,400 per week.

So if we imagine that they contribute 10% to KiwiSaver and their employer contributes 4%, which they'll be obliged to in a couple of years, and they're invested in an aggressive fund, that would leave them with about $965 in the hand each week.

Stay with me.

At age 65, they'd be projected to have $832,000, which would provide them with an income of $680 per week until 90%.

And when you add NZ Super, that actually gives them about $1,100 a week, which is a pay rise of $140 every week in retirement.

So it's not too bad.

Wow.

If we look at the lifestyle choices, though, that people make and maybe will be making in retirement, what are the ones that have the biggest impact on how much someone might need once they get to retirement age?

Yeah, the biggest factors are usually housing, travel and how active you expect to be.