“The most important thing people can do today is to make a plan,” he said.
“Most of us want to enjoy things like travelling or relaxing with friends and family in retirement, but unfortunately there’s currently a gap between what most people are aiming for and how they’re tracking financially.
“Whether you’re 20 or 60, taking the time to understand your retirement goals and review your KiwiSaver settings, then seeking advice if you need it, can make a meaningful difference to your future financial wellbeing.”
Massey University’s latest Retirement Expenditure Guidelines, released in 2025, found most New Zealanders aiming for a comfortable standard of living will need income beyond superannuation.
It found a two-person “no frills” household in a metropolitan area has weekly expenditure of $909.90, while a similar household in a provincial area spends $1031.85.
Households aiming for a “choices” lifestyle in a metropolitan setting spend $1739.85 per week, while those in provincial areas spend $1210.18 per week.
Westpac’s survey found most Kiwis (43%) expect to retire between 65 and 69, while 12% expect to retire at 70 or older and 29% expect to retire before 65.
“Retirement might feel a long way off, but the earlier people take action, the more time their savings have to grow,” Twidle said.
“Small steps today, such as increasing contributions when you receive a pay rise, checking your fund remains appropriate for your goals, or making voluntary contributions, can have a significant impact over time.”
The Financial Markets Authority’s latest annual KiwiSaver report shows the average member balance was $40,340 for the year ending March 31, 2026.
To help lift savings, the Government last year announced the minimum KiwiSaver contribution rate would increase to 4% for employees and employers, phased over three years.
But as the election approaches, National and Labour are proposing further increases of the rate to move New Zealand closer to Australia’s 12%, which employers are required to contribute to.
National wants to push employee and employer default rates up to 6% by 2032, taking overall contributions to 12%.
Labour has proposed lifting the default contribution rate for employers to 6% by 2032, which would be compulsory even when employees reduce or pause their own contributions.
Pathfinder co-founder and chief executive John Berry told the Herald recently that cross-party agreement was needed for KiwiSaver and NZ Superannuation settings.
“At the moment we don’t have that certainty. We have a lot of discussion around the settings may need to change but I think we just need to get on,” he said.
“It’s above politics. People’s retirement saving is so important for New Zealanders.
“It shouldn’t be a divisive difficult political issue. It should be something people want to work on collaboratively.”
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