Mind the (income) gap
The income gap in retirement can be as high as $903
2023 Massey University research on retirement spending shows that all the household categories studied spent more than they received from the New Zealand Superannuation (NZ Super).
This was regardless of whether they lived a ‘no frills’ lifestyle in the provinces, or a more 'choices lifestyle in the city, according to the Massey Fin-Ed Centre’s New Zealand Retirement Expenditure Guidelines 2023.
Key findings from the 2023 report
- Even the one-person, no-frills homes in provincial areas (the lowest spenders of all) were spending over $194 a week more than they were receiving from the government.
- At the other end of the scale, a two-person ‘choices’ home in a metro area was spending $903 more each week than the NZ Super provided them. Not exactly small change.
- When it comes to thinking about retirement, it’s all about minding the gap – the income gap that is.
The Difference Between Total Expenditure and The NZ Superannuation
Two-person household's weekly expenditure
| Choices Lifestyle | Metro Area | Provincial Area |
| Household Expenses | $1,666 | $1,331 |
| NZ Super Payment | $763 | $763 |
| Income Gap | $903 | $567 |
| No-frills Lifestyle | Metro Area | Provincial Area |
| Household Expenses | $982 | $850 |
| NZ Super Payment | $763 | $763 |
| Income Gap | $219 | $87 |
One-person household's weekly expenditure
| Choices Lifestyle | Metro Area | Provincial Area |
| Household Expenses | $1,163 | $1,263 |
| NZ Super Payment | $496 | $496 |
| Income Gap | $667 | $767 |
| No-frills Lifestyle | Metro Area | Provincial Area |
| Household Expenses | $826 | $690 |
| NZ Super Payment | $496 | $496 |
| Income Gap | $330 | $194 |
Lifetime can help you bridge the income gap
Lifetime helps you turn a lump sum (retirement savings) into a regular, tax-paid, fortnightly income designed to last for the rest of your life. So you can enjoy the retirement lifestyle you deserve.
- Lifetime helps you take care of the income part of your retirement plan.
- Lifetime actively manages the key unknowns: your life expectancy and investment returns.
- Lifetime's investment strategy is focused on supporting you to a target age, not on gaining high returns in any one year.
- Lifetime works to preserve your long-term capital to support your ongoing retirement income payments for life.
- Lifetime is backed by a dedicated team of industry experts
"Our purpose is to help people enjoy their retirement with the security of an income for life"