- Publish Date
- Friday, 4 January 2019, 10:38AM
Numbers crunched by Massey University have revealed how much an individual would need to have in KiwiSaver by age 30, 40, 50 and 60 to afford either a no-frills retirement or more choices.
The figures are based on Massey University's annual retirement expenditure guidelines which show a one-person household would need to have $101,774 saved by age 65 to live a no-frills life in the city or just $30,199 in the provinces.
To be on track for a 'no frills' retirement a person would need to have $25,000 in their KiwiSaver account by age 30, $45,500 by 40 and $66,500 by age 50.
To get there a person would need to save roughly $36.42 a week from the age of 18 until they retire at 65.
But those wanting more choices in retirement - to buy a bottle of wine, go on holiday or just see a movie - would need much more.
Massey's figures show a one-person household would need to have $360,620 in savings by age 65 for those in the city and $388,073 for those in the provinces.
To have $400k in savings by age 65 a person would need to have $101k by 30, $182k by 40, $266,500 by 50 and $354k by age 60.
That would require a person to save just over $145 a week from age 18 until age 65.
Massey also worked out how much a person would need to save if they emptied their KiwiSaver account to buy at a house at age 30.
To get to $100k for a 'no frills' retirement they would need to put away nearly $50 a week after age 30 and for a choices retirement they would need to save around $200 a week to get to $400k.
The amount a person had at retirement could also be boosted by one-off lump sums from down-sizing a property, moving to another area or an inheritance.
This article was first published on nzherald.co.nz and is republished here with permission.