Two-thirds of New Zealanders want choices in their retirement lifestyle, but most don’t feel on track.

New research from Westpac NZ shows there’s a gap between the retirement lifestyle people want and how on track they are to achieve it.

A nationally-representative survey of 443 people who have not yet retired, conducted on research platform Ideally earlier this month, found 66% of people said they were planning for a retirement involving at least some travel and leisure activities. 

However, only 36% of people overall said they were confident they were on track with their retirement savings. 

Andrew Twidle, CEO BTNZ, Westpac NZ's KiwiSaver Scheme provider, says the findings highlight the importance of working out how much money you will need in retirement and taking action as early as possible.

“The most important thing people can do today is to make a plan. 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.”

Massey University's 2025 retirement expenditure guidelines suggest couples aiming for a "choices" lifestyle in retirement need household savings of around $1m in metropolitan areas and around $450,000 in provincial New Zealand.

The Westpac survey found 36% of all respondents believe they will need less than $500,000 in household retirement savings, while just 21% believe they will need $1 million or more.

Other recent data shows many New Zealanders still have a considerable distance to go if KiwiSaver is to fund their retirement. The Financial Markets Authority’s 2026 KiwiSaver Annual Report shows the average member balance was $40,340 for the year ending 31 March 2026.

“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," Mr Twidle says.

“As a first step, have a look at the Sorted Retirement Calculator. Thinking about what kind of lifestyle you want in retirement and what your outgoings are likely to be each week will help you get a better idea of what sort of nest egg you’re going to need and whether you’re on track.” 

The survey findings indicate continuing with paid employment may be how some New Zealanders will fund their retirement – one in five people said they expected to keep working until they’re aged 70 or over. A further 43% of respondents said they planned to retire between 65 and 69, while 8% weren’t yet sure.   

Mr Twidle says while it’s positive to see that as the KiwiSaver scheme is maturing and balances are increasing (the FMA report showed the average balance had increased 11% over the past year), it’s clear that action is still needed to support meaningful increases in people’s retirement savings.

“Retirement might feel a long way off, but the earlier people take action, the more time their savings have to grow. 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."

“As well as the Sorted Retirement Goal tool, explore the Westpac KiwiSaver Scheme Fund Chooser, or equivalent tools, to learn more about different fund options and how these might fit with your long-term savings goals.

“We also encourage people to reach out to talk to us, or other KiwiSaver providers – it’s really easy to get advice and guidance to help you plan for the retirement you’re aiming for.”

ENDS

Editor’s note: Survey was conducted by Ideally on 3 September 2026. It was completed by 443 respondents aged between 18 and 80 who have not yet retired, with the margin of error of 4.6% at a 95% level of confidence.  

Survey findings

At what age do you expect to retire?

Which of the following best describes the retirement lifestyle you are planning for?

Approximately how much retirement savings do you think you’ll need when you retire? If you are planning for your retirement together with a partner, please include the combined amount you think you will need.

How confident are you that you’re on track with your retirement savings?

 Things to know

This media release is provided for information purposes only and is not a recommendation or opinion in relation to the Westpac KiwiSaver Scheme. Investments are subject to risks, including loss of investment value and principal invested.

BT Funds Management (NZ) Limited is the scheme provider and issuer, and Westpac New Zealand Limited is a distributor, of the Westpac KiwiSaver Scheme.

Investments made in the Westpac KiwiSaver Scheme do not represent bank deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited or other members of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac group of companies, The New Zealand Guardian Trust Company Limited, or any director or nominee of any of those entities, or any other person guarantees the Westpac KiwiSaver Scheme’s performance, returns or repayment of capital.

The product disclosure statement for the Westpac KiwiSaver Scheme is available at westpac.co.nz/kiwisaver.