What lump sum do you need to achieve your desired annual income in retirement?

Income Required 


Years income needed for 


Savings required


Once you understand how much annual income you require in retirement, you need to determine where it will come from. For example if you need $40,000 per annum and you are comfortable that you can rely on receiving around $20,000 from New Zealand Superannuation, you will need to provide an additional $20,000 yourself.

You can quickly work out the lump sum you will need to provide the extra $20,000 per year. Just answer the following questions and enter your answers into the calculator:

  • What income do you require?
  • How many years will you spend in retirement?

What is a realistic income for your retirement?

Most of us aren't prepared to lower our standard of living when we retire. Eating and drinking, taking holidays, buying clothes, and visiting friends and family will still be important!

But how much is enough? Working out the income you need in retirement depends on what you expect your cost of living to be. You can estimate this by basing your annual retirement income on 70 percent of the annual income you expect to be receiving just before you retire after deducting your regular savings.

This is usually a good approximate measure to maintain your pre-retirement lifestyle. While the amount of money you spend in retirement on some things may go up (e.g. health care), in other areas (e.g. education and housing) it may go down.

If you're closer to retirement, you might want to work out a detailed budget for retirement. Think about what your weekly expenses might be in today's money.

How many years will you spend in retirement?

People are living longer today. On average, 65 year old men can expect to live to age 81, and 65 year old women to 84. In the future, we'll probably live even longer.

If you plan to retire at 65 your savings need to last at least 20 years.

DISCLAIMER: These calculators are intended to provide an estimate only of the amount of money you will need to achieve your financial goals. Figures assume a growth rate after tax, fees and inflation of 3% p.a. These figures offer no guarantee of future performance. All dollar figures are expressed in real terms, i.e. they have today's purchasing power. Financial advice from a professional financial planner should always be taken.


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Important information
The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission. A disclosure statement is available from your adviser on request and free of charge.

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