Can You Retire in New Zealand With $100k - $500k?
If you don’t have the big numbers financial experts often talk about, don’t worry, you may still yet survive retirement.
To understand how much you can withdraw from a common retirement ‘Balanced’ portfolio, we use a simple rule of thumb of 4% of your investment balance each year (and 6% if you wish to spend more earlier without inflation adjustments).
Here’s what you need to know:
New Zealand Super creates the base for your spending (figures as at April 2025).
If you’re a couple, that’s around $43,000 per year after tax ($1,653 per fortnight).
If you’re an individual, that’s $28,000 per year after tax ($1,076 per fortnight).
Your investments then form the remainder of your expenses.
Example - $100,000 investment balance
4% rule
4% of $100,000 = $4,000 per year = $154 per fortnight
Couple total income: ~$1,653 + $154 = $1,807 per fortnight
Individual total income: ~$1,076 + $154 = $1,230 per fortnight
Inflation increase example (CPI 2.5%):
$154 x 2.5% = $3.85 extra per fortnight
New withdrawal from next April: $157.85 per fortnight
6% rule (no inflation increases)
6% of $100,000 = $6,000 per year = $231 per fortnight
Couple total income: ~$1,884 per fortnight
Individual total income: ~$1,307 per fortnight
Example - $300,000 investment balance
4% rule
4% of $300,000 = $12,000 per year = $461 per fortnight
Couple total income: ~$1,653 + $461 = $2,114 per fortnight
Individual total income: ~$1,076 + $461 = $1,537 per fortnight
Inflation increase example (CPI 2.5%):
$461 x 2.5% = $11.53 extra per fortnight
New withdrawal from next April: $472.53 per fortnight
6% rule (no inflation increases)
6% of $300,000 = $18,000 per year = $692 per fortnight
Couple total income: ~$2,345 per fortnight
Individual total income: ~$1,768 per fortnight
Example - $500,000 investment balance
4% rule
4% of $500,000 = $20,000 per year = $769 per fortnight
Couple total income: ~$1,653 + $769 = $2,422 per fortnight
Individual total income: ~$1,076 + $769 = $1,845 per fortnight
Inflation increase example (CPI 2.5%):
$769 x 2.5% = $19.23 extra per fortnight
New withdrawal from next April: $788.23 per fortnight
6% rule (no inflation increases)
6% of $500,000 = $30,000 per year = $1,153 per fortnight
Couple total income: $2,806 per fortnight
Individual total income: $2,229 per fortnight
Given our expectations for long term returns based on the history and nature of financial markets, these withdrawal rates should be sustainable irrespective of how markets perform, as long as you stay invested throughout your retirement.
If you can, working part-time through retirement is a great way to stay active while also helping you meet your expenses between NZ Super, your investments, and your part-time income.
If you would like help establishing your investments so you can receive consistent income throughout retirement, get in touch with us today.