New Zealand retirement income: a worked example

Invented figures, not official pension rates. Ages are scenario inputs, not eligibility ages. Do not enter KiwiSaver withdrawals as extra income if the KiwiSaver balance is already included in savings.

What does this example show?

With spending of NZ$3,800 a month, an entered pension of NZ$2,500 from age 65, and no investment growth or inflation, the plan needs NZ$481,200 at age 63 to last until age 90. Of that, NZ$91,200 covers the period before the pension starts.

Load this example

Prepare the New Zealand inputs

Combine a confirmed NZ Super amount with accessible KiwiSaver and other savings. Explore the gap before payments start and the spending your savings can support afterwards. Work and Income explains NZ Super eligibility, residence requirements and interactions with overseas pensions. Your circumstances matter; a standard rate is not a personal entitlement. Use the appropriate net amount, considering the tax code and the scenario you are planning.

Read the country guide and input checklist

Every assumption in the baseline

Current age / stop working: 63 / 63
Plan until age: 90 (exclusive)
Accessible savings at retirement: NZ$481,200
Further saving: NZ$0 per month
Spending after tax: NZ$3,800 per month
Entered pension after tax: NZ$2,500 per month, age 65 onward
Other income streams: NZ$0
Net nominal return / inflation: 0% / 0% per year

All figures use today's purchasing power. The pension is an illustrative recurring payment. The model does not assess eligibility, taxes, access restrictions or a benefit increase for claiming later. The example uses zero return to make the arithmetic easy to reproduce; zero is not a return forecast.

Follow the two periods

Age 63 to 65: savings cover all spending.
2 years × 12 months × NZ$3,800 = NZ$91,200.
Age 65 to 90: the pension covers part of spending.
Monthly gap = NZ$3,800 − NZ$2,500 = NZ$1,300. Over 25 years, savings supply NZ$390,000.

Total capital needed: NZ$91,200 + NZ$390,000 = NZ$481,200. At a nonzero return, the calculator discounts each monthly gap. It never borrows against future pension income.

Change one assumption

Same starting savings and spending, different timing · NZD
Scenario	Capital needed	Additional capital needed	Try it
Baseline bridge	NZ$481,200	NZ$0	Load scenario
Pension starts one year later	NZ$511,200	NZ$30,000	Load scenario
Plan for five more years	NZ$559,200	NZ$78,000	Load scenario

Delaying the same pension by one year increases the required savings by NZ$30,000. Planning five years longer adds NZ$78,000. Actual later-claiming benefits may differ: get a new official estimate before using a real alternative date.

What this leaves out

Sorted's retirement tools illustrate turning invested savings into an income stream. If you model an accessible KiwiSaver balance as capital here, do not enter your planned withdrawals again as pension income. The calculator itself generates withdrawals from the savings balance.

The result is a deterministic illustration with no market volatility, changing taxes, care-cost shock or inheritance target. Payments remain constant in real terms, which may overstate a pension that does not keep pace with prices. Three income streams are available; combine payments only when their dates and money basis match.

The first twelve-month budget in the calculator solves for a fundable spending level. It is a separate result from your entered target. In a stressed scenario it can be lower than the target; the capital-gap table above keeps the original spending target unchanged.

Official sources and review scope

Source descriptions checked 4 October 2026. This is an illustrative calculation, not a government benefit forecast. Read our editorial policy and review status.

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