In our Live Webinar: How to Plan for Retirement, we explore what it really takes to build a sustainable retirement plan. With 64% of Kiwis worried about not having enough for retirement, understanding how KiwiSaver, property, and shares fit into your financial plan is critical.
Every Kiwi’s situation is unique, but one thing is constant - the earlier you start, the better your options for retirement.
The True Cost of Retirement
Retirement planning starts with knowing your number. For Kiwis who want $100,000 a year in retirement without depending on New Zealand Superannuation, the target is a staggering $1.8 million in invested assets.
Even for those aiming for a modest $80,000, the figure still sits around $1 million.
The key isn’t to feel overwhelmed by these numbers but to reverse-engineer them. Setting clear, short-term goals creates momentum – whether that’s paying off debt faster, contributing more to KiwiSaver, or investing regularly. Compounding actions, not just compounding returns, drive long-term success.
Building a Plan: KiwiSaver, Property, and Shares
A good retirement plan blends education, action, and time. Understanding how to use each asset effectively – KiwiSaver, property, and shares – is essential.
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KiwiSaver provides a strong foundation, especially when optimised for your risk profile and goals. Many New Zealanders still sit in conservative or default funds, missing out on growth potential.
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Property offers leverage – the ability to grow wealth using the bank’s money. A property rising 5% annually can yield strong returns when financed strategically, but it’s vital to remember that property often makes you “rich on paper” and doesn’t always deliver cashflow.
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Shares deliver flexibility and diversification. Managed funds allow you to spread your investments across global markets without the stress of timing the market. Over the long term, the sharemarket has historically averaged 10% returns, balancing short-term volatility with long-term growth
Understanding how these three tools work together – rather than choosing one – builds resilience and financial freedom.
Reducing Debt and Reclaiming Cashflow
Paying off your mortgage early is one of the most powerful retirement moves. A $600,000 mortgage paid off over 25 years costs over $500,000 in interest; shaving 10 years off saves more than $220,000.
Gamifying debt reduction – setting smaller targets like knocking off $20,000 at a time – keeps you motivated. Once the mortgage is cleared, redirecting those payments into managed funds or investment property accelerates wealth creation.
Defining Your Retirement Lifestyle
For some, retirement means travel and leisure; for others, it’s about flexibility – working by choice, not necessity. Creating a clear picture of your goals helps determine the right balance of KiwiSaver, property, and shares.
Some clients want to help children into their first homes or enjoy early retirement at 55. Others prioritise “warm inheritances,” supporting their families while they’re alive rather than leaving it all behind later.
Key Takeaways
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64% of Kiwis worry they won’t have enough for retirement – planning early changes that.
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You may need around $1.8 million to generate $100,000 a year in retirement income.
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Combine KiwiSaver, property, and shares to create diversified, sustainable income.
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Paying off your mortgage early can save hundreds of thousands in interest.
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Consistent, incremental action compounds into significant long-term results.
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Tailor your plan to your lifestyle goals – not someone else’s version of retirement.
Next Steps:
Book a free 30-minute discovery call with Lighthouse Financial to start building your personalised retirement plan and understand how KiwiSaver, property, and shares can work together to support your future.
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
