Westpac Massey University Fin-Ed Centre and Workplace Savings released their latest calculations on the spending of current retirees. The couples who live in New Zealand’s major cities were the only ones that would be able to survive on NZ’s Superannuation – that is, if they were living a modest lifestyle.
Massey University researcher Claire Matthews said that those who were living frugally still needed to use their savings or income on top of the government benefit in order to survive. In order to maintain a basic standard of living, people must accrue savings while they are working.
On average, an Auckland based couple would require a combined total of $552,000 in their KiwiSaver to live a lifestyle making “choices”.
According to the calculations from the retirement planner tool on Sorted, a single female would need $113,216 saved by 65 to live a “no frills” retirement. If you start saving from a young age, say 25 years old, you would need to put away $46 a week but if you start saving later in life, say 50-years-old, you would need to save $144 a week.
While saving when you’re young, half of those contributions could come from your employer and the government subsidy.