How to Make Your Retirement Savings Last Longer: Simple Withdrawal Strategies for Kiwis in 2026

Retirement should be enjoyable, not stressful about money running out. If you have savings in KiwiSaver or other investments (often $1 million or more), the trick is taking money out in a way that keeps it going for 20, 30 years or longer.

NZ Super gives you a solid start Right now, a single person living alone gets about $538 per week after tax (around $28,000 a year). This payment comes every two weeks, and it goes up each year to match rising costs. For many people it covers rent or mortgage, food, power, and everyday bills. Because of this reliable income, you can take money from your own savings more comfortably without worrying as much about running out.

The aim is to have steady money coming in that fits your life – your health, travel, family, hobbies – while letting your savings keep growing a bit where possible. Here are some popular and proven ways to do it, with practical notes for New Zealand.

1. The Straightforward 4% Approach Take 4% of your total savings in the first year, then add a little extra each year for rising costs. Example: $1,000,000 savings → $40,000 first year. If costs go up 3%, take $41,200 the next year.

Why people like it: Very easy to plan around. Studies show it often lasts 30 years or more with a balanced mix of investments. One thing to watch: If markets drop a lot early on, it can reduce your savings faster. In New Zealand: Because NZ Super covers around $28,000 a year, many people comfortably take 4–5% (sometimes a bit more) from their own money. It feels safer here than in other countries.

Good if you like knowing exactly how much you can spend each month.

2. Flexible Yearly Percentage Each year, take a set percentage (say 4–5%) of whatever your savings are worth at that moment. Example: Year 1: 4% of $1 million = $40,000. If savings drop to $900,000, next year = $36,000. If they grow to $1.1 million, = $44,000.

Why people like it: It automatically takes less in bad years, which helps your money last longer. One thing to watch: Your income changes from year to year, so you need to be flexible with big expenses. In New Zealand: NZ Super stays the same, so it smooths things out. The changeable part just gives you extra for nice things.

Works well if you don’t mind adjusting spending a little each year.

3. Smart Guardrails (Adjust as Needed) Start with 4–5%, but have simple rules to change it: for example, don’t cut more than 10–20% from last year’s amount, or skip the extra rise in a bad market year. Allow a small increase when things go well.

Why people like it: You can often start a bit higher (4.5–5.5% has worked in many tests) while still protecting against running out. One thing to watch: You need to check it once a year. In New Zealand: This is very common – people use a solid base rate with these safety rules, and NZ Super helps if things get tough.

Gives you security plus the chance to spend more when markets are good.

5. Increase Over Time as You Age Start with a lower amount, then gradually take a higher percentage as the years go by (shorter time ahead means it’s safer to take more).

Why people like it: Matches the way spending needs often ease later in life. One thing to watch: You might end up with higher spending when health or mobility is lower. In New Zealand: NZ Super takes pressure off the early years, so many people start gently and increase only if needed.

What really helps most retirees

• Treat NZ Super (around $28,000+ a year for singles living alone) as the foundation – take less from bigger savings pots.

• Keep some growth investments (if your age and comfort allow) to fight rising costs over time.

• Build in wiggle room for health surprises, market ups and downs, or extra fun like trips.

• Check your plan once a year – life changes!

• Many mix methods (e.g. 4–5% base + guardrails) for the best results.

With NZ Super as backup, lots of people comfortably take 4–6% from private savings and still see their money last.

Ready to get your plan right? If you’re retired or close to it, and wondering: “Is my $1m+ portfolio safe at this withdrawal rate?” “How can NZ Super + KiwiSaver work best for me?” “What tweaks would let me enjoy more without risk?”

We’re here to help. We run clear projections, test different scenarios, and build a drawdown plan that fits your goals, health, and lifestyle – so your savings support you, not hold you back.

Email me at adam@compoundwealth.co.nz or contact us below to get started. No pressure – just straightforward advice to give you confidence in retirement.

Your future holidays, family time, and peace of mind are worth it!