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Retirement can change where your money comes from

For most of your working life, the equation is fairly simple: you work and you're paid. Instead of relying on a single income, your retirement income may come from a range of sources, including:

  • New Zealand Superannuation (NZ Super)
  • KiwiSaver
  • Savings and investments
  • Income from work
  • Property or other assets.


Understanding how those pieces fit together is an important part of retirement planning and knowing how prepared you are. The mix will be different for everyone, but knowing what income you can expect, and where it will come from, can help you plan with more confidence.

Start with what you have

Before worrying about whether you have enough, get a clear picture of what you actually have. Make a simple list of your assets and consider which of them could help support your retirement lifestyle. 

Possible assets may include: 


Then make a list of any debts you still have, including:

  • Mortgage
  • Credit cards and personal loans
  • Other borrowing


Understanding both what you own and what you owe gives you a clearer picture of where you stand today. If you’re planning with a partner, it helps to look at your combined savings, debts, income, and goals. This is often the first step in understanding how prepared you are for retirement. 

Your KiwiSaver

For many New Zealanders, KiwiSaver may become one of their largest financial assets outside their home. That's why it's worth understanding how your KiwiSaver works well before retirement. Three things matter most:

  • How much you have
  • How it's invested
  • What you'd like it to do for you in retirement


Your investment settings matter because retirement doesn't necessarily mean your money stops working for you, and many people need their savings to last for years to come, which makes decisions about investment risk, withdrawals and staying invested especially important.

You can generally access your KiwiSaver savings from age 65, but that doesn't mean you need to withdraw everything at once. Many people choose to keep some or all of their KiwiSaver invested, depending on their goals and circumstances.

NZ Super

New Zealand Superannuation (NZ Super) is a government pension available to eligible New Zealanders. For many people, it forms an important part of their retirement income alongside KiwiSaver, savings, investments, or income from work. 

For example, a single person living alone currently receives around $1,110 per fortnight after tax, while a couple who both qualify receive a higher combined amount. Understanding what NZ Super could contribute can help you work out how much may need to come from other sources.

While many New Zealanders are eligible, it's still worth checking the eligibility requirements well before you retire. Eligibility involves more than age alone, including minimum residency requirements in New Zealand since ages 20 and 50. If you've spent time living overseas, it's worth understanding how these rules may affect you.

Good to know: A little planning now can help avoid surprises later. Check your eligibility before you retire and understand how NZ Super may fit into your retirement plans. See the latest eligibility requirements on the Work and Income website.

Your home 

Your home can play two very different roles in retirement: a place to live and, for some people, an important financial asset. 

Somewhere to live

If you've paid off your mortgage, your housing costs may look quite different from someone who is renting or still making mortgage payments. 

Some people choose to stay in the family home throughout retirement. Others may decide to downsize, move somewhere more affordable, or make other changes that free up some of the money tied up in their property. 

A source of equity

For many New Zealanders, their home represents a significant share of their overall wealth. If part of your retirement plan involves accessing some of the value in your home, it's worth being realistic about what that could mean in practice. While downsizing can free up money, many people want to stay close to family, friends, and the communities they know. And if you're planning to buy a smaller home in the same area, the financial benefit may be less than you expect. 

Still paying a mortgage?

If you own your home but still have a mortgage, spending some time planning ahead could give you more options in retirement.


Here are a few things to think about:

  • Know what you'll owe at retirement
  • Pay extra now to reduce your debt, but check fees first.
  • Using savings to clear debt may leave less invested for later
  • Look at the bigger picture. Income, savings, and lifestyle goals matter too
  • Get advice early to weigh up your options


The goal isn't necessarily to be mortgage-free by retirement. It's to understand how your mortgage fits into your overall plan and lifestyle.

How do you turn savings into a retirement income?

This is one of the biggest changes retirement brings. During your working life, you're generally building your savings. In retirement, those savings may help fund the lifestyle you've worked hard to create.

Imagine retiring with $300,000 in KiwiSaver and other investments. The question isn't simply, "Is $300,000 enough?" More importantly, how could that money work alongside NZ Super and other income sources to support the retirement you want?

For many people, the challenge isn't how much they've saved. It's understanding how their KiwiSaver, savings, investments, NZ Super, and other assets could work together, how long that money may need to last, and what it could provide in retirement. Tools like our Retirement Calculator can help bring the bigger picture into focus.

More useful questions might be:

  • How much do I need each week to support the lifestyle I want? 
  • How much of that could NZ Super help cover?
  • How much may need to come from my KiwiSaver, savings, or investments?
  • How long might that money need to last?
  • How much should remain invested?
  • How might rising living costs affect my plans?
  • What if I live longer than expected?


That's why it's often more helpful to think about the income your savings could provide, rather than focusing only on the balance you've built up. 

Your money may still need to grow

It can be tempting to think that retirement means moving all your money into the safest possible option. But retirement can last a long time. As living costs rise, your money may need to do more than just sit there. Some of it may still need the opportunity to grow.

One way to think about it is through a three-bucket approach:

  • Money you'll need soon for day-to-day spending
  • Money you'll need over the next few years
  • Money you may not need for a long time


Each bucket may have a different job to do. Money you'll need in the near future may be managed differently from money intended to support you later on.

The challenge is finding the right balance between having money available when you need it and supporting your needs later in retirement. There's no one-size-fits-all approach. The right balance will depend on your goals, your timeframe, and how comfortable you are with investment risk.

What about tax?

Retiring doesn't mean tax disappears (sorry!). NZ Super is taxable, and depending on where your retirement income comes from, there may be tax implications for income from work, investments and other sources. If you have KiwiSaver or managed funds, it's worth understanding your Prescribed Investor Rate (PIR) and how it applies to your investments. PIR isn't the same for everyone. The current rates are 10.5%, 17.5% and 28%, depending on your income. If you're unsure which one applies to you, it's worth checking.

Tax also becomes more complex when your income comes from several different places. Understanding how tax applies to different income streams can help you build a clearer picture of the income you may have available in retirement.

Having a basic understanding can help you plan with more confidence. For advice tailored to your personal circumstances, consider speaking with a financial adviser or tax professional.

Putting the pieces together


You've spent some time thinking about the retirement you want and where your retirement income could come from.

Now it's time to bring those pieces together and start shaping a plan for how your money will actually work in retirement.


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Important information

The information on this page is general only and isn't financial advice. Before making any decisions, consider getting advice that takes your personal circumstances into account. If you'd like to talk to someone, contact us on 0800 267 005.