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That is one of the key questions addressed in the latest Retirement Expenditure Guidelines from Te Kunenga ki Pūrehuroa ������Ƶ’s NZ Financial-Education and Research Centre (Fin-Ed Centre).

The average age of first-home buyers in New Zealand is now around 35 and most are drawing heavily on their KiwiSaver to fund their deposit.

The 2025 report models a range of scenarios showing that someone who begins contributing to KiwiSaver from their early 20s, even after withdrawing around $75,000 for a first-home purchase at age 35, could still reach the lump sum needed to fund a modest retirement by age 65. But for those who delay joining KiwiSaver until their 40s or 50s, or who pause contributions for several years, the gap between savings and retirement needs gets much harder to close.

Associate Professor Claire Matthews, who leads the research, says KiwiSaver remains a cornerstone of financial wellbeing for New Zealanders, but only if people continue to treat it as a long-term commitment and not use it as an emergency fund.

The Retirement Expenditure Guidelines estimate how much retirees need on top of New Zealand Superannuation (NZ Super) to maintain different standards of living. For 2025, those figures are:

• $181,000 for a one-person “No Frills – Metro” lifestyle
• $273,000 for a one-person “Choices – Metro” lifestyle
• $118,000 for a two-person “No Frills – Metro” lifestyle
• $1.033 million for a two-person “Choices – Metro” lifestyle

While the “Choices” figure for two-person households may seem disproportionately high, the report explains that it reflects the wider gap between NZ Super payments and the cost of a comfortable lifestyle for two. While couples do share some household expenses, the “Choices” lifestyle involves a greater proportion of discretionary costs, reflecting an ability to pool financial resources resulting in more disposable income.

The report also highlights that rising costs for essentials like food, energy, and local council rates continue to outpace inflation, increasing the pressure on retirees. Housing is also a growing concern, as younger generations face lower rates of home ownership and higher rental costs in retirement.

“For most people, KiwiSaver shouldn’t end with the house purchase. Think of it as two chapters of the same story. First helping you buy your home, then helping you retire securely in it.”

Financial Advice New Zealand Chief Executive, Nick Hakes says the 2025 Retirement Expenditure Guidelines arrive at a pivotal time.

"With the number of New Zealanders aged 65 and over projected to reach one million by 2028, the implications for personal finances, public policy, and intergenerational wellbeing are significant. The data and insights in this report empower advisers to deliver advice that is not only technically sound but deeply relevant to the lived experience of retirees."

The Retirement Expenditure Guidelines are produced annually by the Fin-Ed Centre — a partnership between ������Ƶ and Financial Advice New Zealand, and is widely used by advisers, policymakers and individuals as a benchmark for retirement planning.