Take full advantage of your entitlements

As well as NZ Super, there are several other valuable benefits retirees might be entitled to which could help reduce day-to-day living costs:

The Winter Energy Payment: These started 1 May, and are paid until 1 October. If you are on NZ Super it's paid automatically, providing extra support during the colder months.

Community Services Card: Reduces healthcare costs for low-income earners and those receiving certain government benefits (such as the accommodation or residential care supplements) – superannuitants included.

SuperGold Card: You should receive this around the same time as your NZ Super payments start. It provides a wealth of benefits and discounts, including for transport, groceries, entertainment, and health and wellbeing services. It's worth asking whether there's a SuperGold discount whenever you pay for or book something. Every little bit helps.
 

Don't be scared to spend your capital

Many retirees are hesitant to touch their savings, preferring to live only on the income their investments generate. While this approach feels safe, it can mean unnecessarily restricting your lifestyle – especially when you've worked hard to build that nest egg.

It's essential to think long term – longer than you might expect. Actuaries who specialise in mortality risk suggest that people retiring these days should assume they'll live to between 90 and 95 years old. That means you'll need an income that lasts up to 30 years.

The key is finding the right balance: drawing down enough to enjoy your retirement without running out of money too soon.

If capital drawdown is not part of your plan, you may not be getting the most out of your retirement income. At Lifetime Retirement Income, we know this can be a scary concept to manage on your own – which is why we developed the Lifetime Retirement Income Fund.

Know your retirement income options

Historically, term deposits and property investments shaped many Kiwis' retirement income plans. But today, there are more options available, each with different benefits and trade-offs.

Traditional options

Term deposits: Provide security and fixed returns, but in today's environment, interest rates may not keep pace with inflation, meaning your purchasing power gradually erodes.

Rental property: Can provide regular income, but comes with management responsibilities, maintenance costs, and the risk of periods without tenants. It also ties up a significant portion of your wealth in a single asset.

KiwiSaver and investment funds: Can continue to grow in retirement, but you'll need to manage withdrawals to ensure your money lasts carefully.

Modern solutions from Lifetime Retirement Income

This is a managed drawdown fund designed specifically for retirees. It invests your retirement savings in a diversified portfolio. Then it distributes your savings and the investment returns (after fees and taxes) in regular fortnightly income payments that can continue for your nominated lifetime.

How it works:

• Your capital is invested in a balanced portfolio managed by professional investment managers.
• You receive regular fortnightly income payments directly to your bank account.
• The fund is designed to provide income for your nominated lifetime (typically to age 90-95).
• Each year on your birthday, your income is recalculated based on your remaining balance, investment returns, and life expectancy.
• Payments are not guaranteed and may change from one year to the next based on fund performance and your circumstances.
  
  

Key benefits:

• Takes the guesswork out of how much you can safely withdraw each year.
• Provides professional investment management.
• Gives a regular, predictable income stream.
• Is flexible to adjust as your circumstances change.

Lifetime Home

If you're one of the thousands of Kiwi retirees who have a mortgage-free home but are struggling to get by on NZ Super alone, tapping into your home's equity could be an option worth considering. 

Lifetime Home is NZ's first and only debt-free home equity release product. Unlike reverse mortgages, which create debt, Lifetime Home allows you to sell a minority share of your home (typically 35%) in exchange for a fortnightly income stream spanning up to 10 years.

How it works:

• You sell a predetermined share of your home to Lifetime.
• You continue living in your home for as long as you wish.
• You receive regular fortnightly income payments for up to 10 years, with the ability to extend for an additional five years.
• When you eventually sell or move, Lifetime Home receives its share of the sale proceeds.
• No interest accumulates, and no debt is created.
  
  

Key benefits:

• Unlocks the wealth in your home without selling or moving.
• Is a debt-free solution – no compounding interest eating into your equity.
• Provides a predictable income for 10 years.
• Can be life-changing for those struggling on NZ Super alone.
  
  

Don't 'set-and-forget' your retirement income plan

An income derived from the gradual drawdown of savings over a long period needs to be managed carefully. Plans should be reviewed at least once a year to ensure the amount being withdrawn is sustainable, or whether your income should be tweaked to reflect fluctuating investment returns, inflation, or mortality risk.

What you should review annually:

• Have your expenses increased more than expected?
• Are your income sources keeping pace with inflation?
• Has your health or life expectancy changed?
• Do you need to adjust your spending or income strategy?
• Are there new government benefits or entitlements you could access?

Lifetime Retirement Income recognises that everyone's retirement plan is unique and circumstances can change over time. That's why Lifetime Retirement Income Fund customers have their income calculation reassessed every year on their birthday. That way, we can ensure your retirement plan is the very best fit for you.

Project your retirement income.