When people talk about the New Zealand pension, a government-funded income for retirees based on age and residency. Also known as New Zealand Superannuation, it's the backbone of retirement income for most Kiwis over 65. But it’s not a luxury payout—it’s meant to cover basic needs, not holidays or new cars. The current rate is around $535 a week for a single person living alone, before tax. That’s less than $2,800 a month. For couples, it’s about $810 a week combined. That’s the baseline. Anything more? You’ve got to earn it yourself.
That’s where KiwiSaver, a voluntary workplace savings scheme with government contributions. Also known as New Zealand retirement savings plan, it becomes critical. Nearly 80% of working Kiwis are in KiwiSaver, but the average balance at age 65 is only $75,000. That’s not enough to live on alone. Most people combine it with the pension, but inflation, healthcare costs, and housing make that tight. And if you’re not in KiwiSaver? You’re relying entirely on the pension—and that’s a risky bet. The pension age is 67 and rising. If you were born after 1970, you’ll wait longer. Meanwhile, house prices have doubled since 2010, but pension payments haven’t kept up.
What most people don’t realize is that the pension isn’t means-tested in the traditional sense—you don’t have to be poor to get it. But if you have significant savings, your income from other sources (like investments or part-time work) can reduce your benefit. And if you’ve lived overseas? Your time outside New Zealand might cut your payment. The system rewards long-term residency, not just age. So if you moved here at 40, you’ll get less than someone who spent 40 years here.
There’s no magic number that says you’re ready for retirement. But if you’re aiming to live without stress, you’ll likely need more than the pension and a modest KiwiSaver balance. That’s why so many people in New Zealand keep working past 65, rent out rooms, or dip into home equity. The real story isn’t about how much the government gives—it’s about what you’ve saved, what you own, and how you’ve planned for the years after work ends.
Below, you’ll find real breakdowns of pension payouts, how KiwiSaver stacks up, what happens if you delay retirement, and how housing, taxes, and healthcare change the game. No fluff. Just what people are actually living on—and what you need to know before you stop working.
In New Zealand, Superannuation and KiwiSaver withdrawals are tax-free, but other retirement income like dividends or foreign pensions may be taxed. Know what counts as taxable income in retirement.
