Don't Rely on This For Your Retirement. Why Saving For Retirement Won't Cut It

For most people, the ultimate reason for saving is simple: to prepare for a fruitful retirement. But as you might imagine, this is easier said than done.

The idea is straightforward; if you want to live well in retirement, you need a sufficient pool of capital to live off. The real challenge lies in answering two key questions:

1. At what age do you want to retire?
   

2. How much income will you need in retirement?
   

At Thrive Investment Partners, we work closely with clients to define these goals clearly.

From there, we reverse-engineer a tailored plan designed to get you from where you are now to where you want to be.

As the saying goes:

"A goal without a plan is just a wish." – Brian Tracy

The reality is that most people have a significant gap between their desired retirement income and their current financial trajectory.

The immediate instinct is usually to "save more money." While saving is valuable, it’s rarely enough on its own. Here’s why.

Why Saving Alone Won’t Fund Your Retirement

Saving every week or fortnight might feel productive, but in most cases, it won’t close the retirement gap significantly.

That’s because the real return on cash savings is minimal - especially in today’s economy.

For example:

• If you have $10,000 in a savings account earning 1% interest, but inflation is running at 7%, your real return is actually -6%
  

• In other words, your money is losing value because it can’t keep pace with rising costs
  

This was the case for a huge number of people during the surge in inflation after Covid.

The Reserve Bank of New Zealand has an inflation target of 1–3% annually, but even at that rate, traditional savings accounts rarely outpace inflation. Over time, this erodes your purchasing power.

This is why savings alone are insufficient for retirement planning.

Yes, an emergency fund is essential, but relying on savings as your core retirement strategy will almost guarantee financial shortfalls.

Why You Shouldn’t Rely on the NZ Pension

Another common misconception is that the New Zealand Superannuation (NZ Super) will cover retirement costs.

Unfortunately, the numbers paint a very different picture.

As of today:

• Single person living alone: $1,076.48 per fortnight ($27,988.48 per year)
  

• Couple (both qualify): $1,634.64 per fortnight ($42,500 per year combined)
  

Now compare that to the cost of living in New Zealand, which is estimated at $3,000–$4,000 per month for one person in a major city:

• Annual living cost for one person: ~$42,000
  

• NZ pension for one person: ~$28,000
  

That’s a shortfall of $14,000 per year if you rely solely on the government pension.

This gap is why so many retirees feel financially stretched. Without additional income streams or investments, the NZ pension is unlikely to provide the lifestyle you envision for your golden years.

Why Property Investment is a Powerful Retirement Strategy

So, how do you bridge this gap? For many New Zealanders, property investment remains one of the most reliable ways to build wealth for retirement.

Here’s why:

• Capital growth: Over the long term, property has historically appreciated in value, allowing investors to build equity
  

• Leverage: Property enables you to borrow against an asset that typically grows faster than inflation
  

• Passive income: Rental properties can generate consistent income that supplements government pensions
  

A well-structured property portfolio can be used in two ways during retirement:

1. Sell for equity: Liquidate properties and use the proceeds to fund retirement expenses
   

2. Generate income: Retain properties for ongoing rental income while living off cash flow
   

By using property equity alongside NZ Superannuation, investors create a diversified retirement plan that provides flexibility, security, and financial independence.

Building a Diversified Retirement Plan

The best retirement investment strategy will depend on your unique circumstances, but diversification is key.

Alongside property, other vehicles such as managed funds, KiwiSaver, shares, and business investments can provide additional growth and income.

At Thrive, we help clients:

• Calculate their retirement income targets
  

• Identify the gap between their current trajectory and future needs
  

• Build tailored investment plans designed to close that gap efficiently
  

When structured properly, this approach allows everyday New Zealanders not just to scrape by on government support but to retire comfortably and on their own terms.

The Bottom Line

If you want to avoid being $14,000 short in retirement, you need to act early and create a plan that goes beyond savings and NZ Super.

• Relying solely on the pension is risky and leaves you vulnerable
  

• Savings alone are insufficient due to inflation eroding real returns
  

• Investing in property and other growth-focused assets can create long-term wealth and passive income streams
  

By starting now, working backward from your retirement goals, and leveraging professional guidance, you can put yourself in a position not just to retire, but to thrive.

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How Can We Help You?

We help Kiwis build wealth through property investment. Our advisors will take the time to understand your individual needs and recommend suitable investment properties to help you build wealth and set up your retirement.

What Does This Look Like?

We use a 3-step process:

1. We start with a Discovery Meeting where we learn about you, your goals, etc., and you learn more about us.

2. This is followed by a Strategy Meeting where we model your retirement plan, understand key investment concepts, and briefly touch on some investment choices.

3. Finally, an Asset Selection Meeting where we discuss investment options in more detail and make any recommended adjustments based on what we now know about you.

Who Are We Right For?

We help people make smart investment choices and set up their futures. From first-time investors to experienced investors, we can cater to a wide range of people and help set up their futures through research-based property investment.

How Much Does It Cost?

Our advice is free to you! If you choose to invest, we’re paid by the property developer. This developer-paid model allows us to provide no-obligation property investment advice in New Zealand, without charging clients directly.

What Do We Do, And What Don't We Do?

What We Do

We offer end-to-end New Zealand property investment advice, helping Kiwi investors grow wealth through smart, data-led decisions. Our focus is on quality new builds in strong locations, tailored to your goals, guided by a team that knows the NZ market inside out.What We Don’t Do

We don’t do KiwiSaver, shares, cryptocurrency, or broad financial planning. Thrive is not a generalist firm. We specialise in property investment in New Zealand because that’s where we deliver the most value. By staying focused, we cut through the noise and help our clients make confident, well-informed property investment decisions.

How Do I Start?

Start the process now by booking a time to talk with our advisor by clicking here.