Retirement, planned backwards.

It comes down to how you want to live and what you'll still be paying for — especially whether you'll own your home mortgage-free. Someone who owns outright needs far less than someone still paying rent or a mortgage.

Massey University's annual Retirement Expenditure Guidelines estimate what New Zealand retirees actually spend, by household type, and are a grounded place to start. Then subtract what NZ Super provides and work out what your savings need to cover. Sorted's calculators do this well.

NZ Super is the government pension paid to eligible New Zealanders from age 65, regardless of how much you've saved or whether you're still working. The amount depends on your living situation — single or partnered — and is adjusted regularly.

It covers a fairly basic standard of living for someone who owns their home, and gets tight quickly once housing costs are involved. Check the current rates on the Work and Income website, since they change.

The age of eligibility is currently 65, and you generally need to have lived in New Zealand for a set number of years. You don't have to stop working to receive it — you can draw NZ Super and keep earning.

There's ongoing debate about whether the age will rise in future, so if you're a long way off, plan with some flexibility rather than assuming today's rules hold forever.

Almost certainly in some form — it's politically very hard to remove — but the details could change, whether that's the age of eligibility, how it's adjusted, or any means-testing. Nobody can promise what it'll look like decades out.

The sensible response isn't to panic, it's to treat NZ Super as a foundation rather than your whole plan, and build your own savings on top so you're not depending entirely on future policy.

They work together. NZ Super provides a base income from 65; KiwiSaver is your own savings pot that tops it up and gives you flexibility. For most people, KiwiSaver is the main vehicle they're using to build retirement savings.

As retirement nears, check your KiwiSaver fund type still suits your timeframe, and think about how you'll draw it down rather than just letting it sit. See our KiwiSaver page.

This is the part people plan least and it matters most. Broadly, you either draw down your savings gradually, buy an income stream, or live off the returns and keep the capital — most people do a mix.

A common rule of thumb is to withdraw a modest percentage each year, adjusted for inflation, but it's a rough guide from overseas research, not a guarantee. Sorted has drawdown calculators built for New Zealand conditions, which beat any rule of thumb.

It depends on how much you have, how much you spend, the returns you get, and how long you live — and nobody knows most of those in advance. The variable you control most is spending, and the ability to trim it in bad years makes a big difference.

Rather than a single answer, model it with your own numbers and revisit it as you go. Running out slowly is a risk you manage over time, not a sum you solve once.

Sometimes, but remember NZ Super doesn't start until 65, so anything before that has to be funded entirely by your own savings — which means you need more, not less. Early retirement is really a question of whether your savings can bridge the gap and then last.

Many people find a middle path more realistic: dropping to part-time, or stopping a few years early, rather than a hard finish. It's worth modelling before committing, because the early years are the expensive ones.

For most people, yes if you can — going into retirement mortgage-free is one of the biggest things that makes the numbers work, because housing is the cost that breaks retirement budgets. A fixed income stretches much further without a mortgage on top.

If clearing it entirely isn't realistic, reducing it as far as possible before you stop working still helps. It's one of the highest-value moves in the years leading up to retirement.

Find out where you actually stand. Put your real numbers into Sorted's retirement calculator — your savings, your KiwiSaver, your expected spending — and see the gap between where you are and where you want to be.

It's usually less frightening than the vague worry in your head, and it turns “I should think about retirement” into specific, doable steps. From there it's steady contributions, the right settings, and protecting your income along the way.