Renting in retirement in NZ: why renters need much more saved

If you will rent in retirement, you need a lot more saved than the usual figures suggest, because those figures assume you own your home. Massey University's retirement spending guidelines say so plainly, and NZ Super is set at the same rate for renters and owners. In our worked example, a couple whose savings comfortably cover "no frills" spending as owners would have only $602 a week left after paying $450 rent, and on their normal spending plus rent their savings would run out in their late 70s in a typical market. To cover that rent alone from 65 to 95 takes about $856,000 at retirement in 9 of 10 simulated markets. This guide shows the numbers and what you can do about them. Rules checked 12 November 2026.

Why renters need much more

Retirement spending figures in New Zealand are built mostly from homeowners. Massey University's New Zealand Retirement Expenditure Guidelines (2025) use the actual spending of retired households in the Stats NZ Household Economic Survey, and note that most of those households own their homes. The guidelines' "no frills" figure for two people in a provincial area, $1,060.65 a week, reflects households that mostly pay no rent.

A renter pays everything an owner pays, apart from rates and most maintenance, and then the rent. Massey's own estimates of rent in retirement:

• About $250 a week for a room in a shared house, which Massey says could be covered with a lump sum of about $271,000.
• $400 to $500 a week for a one or two bedroom place on your own.

NZ Super does not change with your housing. A couple gets $854.08 a week after tax at M whether they own outright, have a mortgage or rent. So the rent has to come from savings, from work, or from other help. The renting in retirement calculator puts all of it in one place.

Worked example: the same couple, renting

Our example couple are both 55, with $250,000 in KiwiSaver between them and $50,000 of other savings. They retire at 65 and plan to 95. As homeowners, their retirement pay (what they could spend each week for life after tax, in 9 of 10 simulated markets) is about $1,052: NZ Super of $854.08 plus $198 from savings. That covers Massey's "no frills, provincial" spending of $1,060.65, which falls a little after 75 and 85, and their savings last to 95 in all of our markets.

Now make them renters paying $450 a week, in the middle of Massey's range for a place of their own. Their retirement pay is the same $1,052, because the rent does not change their income. But the rent comes out first:

On their normal spending plus the rent, the savings run out in their late 70s in a typical market, and in their mid 70s in a poor one. After that they would be living on NZ Super alone, with $450 of it going on rent. Renting costs this couple $450 a week of spending for life; there is no way around that arithmetic, only ways to plan for it.

How much does rent need at retirement?

A useful way to see the size of the problem is to ask what lump sum, set aside at 65, would pay the rent until 95. Our engine gives three answers for each rent: the amount that lasts in 9 of 10 simulated markets at the 2.5% return KiwiSaver statements use after 65; the amount with fixed 2.5% returns; and the amount using Massey's own method (Sorted's 3.5% return, 25 years to 90).

Our Massey method figure for a $250 room reproduces Massey's $271,000 exactly. Our main figures are higher because we plan five years longer, to 95, use the lower 2.5% return, and want the money to last in 9 of 10 markets rather than on average. The how much do I need guide explains those choices.

These figures assume rent rises with prices. If rent rises faster, say 1% a year more than inflation, it gets worse: in our example, the chance their savings last to 95 on their spending falls from 2% to under 1%, and the typical market runs out a year sooner. You can set that in the calculator.

Single renters

Single people who rent face the steepest climb, because the single NZ Super rate ($555.15 a week living alone) has to cover a whole rent. A single person aged 55 earning $70,000, with $150,000 in KiwiSaver and $40,000 of other savings, has a retirement pay of about $673 a week from 65 to 95 in 9 of 10 markets. At $350 a week rent, that leaves about $323 for everything else, against Massey's "no frills, provincial" spending of $580.75 for one person. Covering the $350 rent alone from 65 would take about $666,000 at retirement.

If you live with another adult, such as a flatmate or family member, NZ Super is paid at the sharing rate of $512.45 a week, but the shared rent is usually much lower. The calculator has a box for this.

The Accommodation Supplement

Work and Income's Accommodation Supplement is a weekly payment that helps with rent, board or the cost of owning a home. It is not taxed. To get it you must be a New Zealand citizen or permanent resident, normally living here, not in social housing, and paying at least a minimum level of housing costs. It depends on your income, your partner's income, your cash assets, your housing costs and where you live.

The cash asset limits, from Work and Income's page updated 24 July 2026, are $8,100 for a single person and $16,200 for a couple. The maximum weekly amounts depend on the area:

Because of the asset limits, most people with meaningful savings will not qualify until those savings are largely spent. That is why our calculator leaves it out: it is income and asset tested, and depends on your area. Check with Work and Income for your own situation. It is also not paid while you live overseas.

Renting couples: plan for the survivor

Renting couples have one extra risk to plan for. When one partner dies, NZ Super falls from $854.08 a week for the couple to $555.15 for the survivor living alone, but the rent usually stays the same. Food and travel costs fall; the rent does not. For a couple paying $450 a week, the survivor's whole NZ Super would barely cover the rent and leave about $105 a week for everything else.

That is why a renting couple's plan should be tested with one of them alone. The couples and survivors calculator lets you choose who dies and when, and our guide on when a partner dies walks through the numbers for owners. For renters, the answer often involves a smaller or shared place for the survivor, which is easier to plan for calmly now than in the middle of grief.

What renters can do

• Save more, earlier. The lump sums above are large, so time does the heavy lifting. Our how much do I need calculator finds the extra weekly saving that closes the gap.
• Work a little longer, or part time. NZ Super has no income test, so part-time wages add straight to your pay. Our working after 65 guide covers the tax.
• Lower the rent. A smaller place, a different town, or sharing changes the numbers more than almost any investment choice. Compare $250 and $450 in the table above.
• Look at your budget line by line. Our retirement budget guide has a starting list.
• Buy, if it is realistic. For some people, a modest home bought before retirement turns rent into a mortgage that ends. That is a big decision with its own risks; our retiring with a mortgage guide looks at carrying debt past 65.

This is general information, not financial advice. Rents vary widely by town and change over time, so use your own figure.

Questions

How much do I need to retire if I rent?

Everything a homeowner needs, plus enough to pay the rent. For $450 a week from 65 to 95, that is about $856,000 extra at retirement to hold in 9 of 10 markets, or about $655,000 with fixed 2.5% returns.

Does NZ Super pay more if I rent?

No. NZ Super is the same for renters and owners. Help with rent comes from the Accommodation Supplement, which is income and asset tested.

Can I get the Accommodation Supplement on NZ Super?

Possibly, if your income and cash assets are low enough. The cash asset limits are $8,100 for a single person and $16,200 for a couple. Check with Work and Income.

What rent should I plan for?

Use your own. Massey's guidelines suggest about $250 a week for a room in a shared house and $400 to $500 for a one or two bedroom place on your own.