Figures checked 7 Nov 20261 figure in our registerNext review 1 Jul 2027Report an error
New Zealand · https://decisionscalc.com/nz/tools/fire-calculator/
FIRE Calculator
Calculate your FIRE number, years to financial independence, and how NZ Super changes your target. Based on the 4% safe withdrawal rate from the Trinity Study.
Include housing, healthcare, travel and anything else you plan to keep doing
KiwiSaver, managed funds (PIEs), taxable investments combined
Include employer KiwiSaver contributions (after ESCT)
7% = historical stock real return · 5% = balanced
4% classic rule · 3.5% for 40+ yr retirements
Your FIRE Number
FIRE Scenarios & Projections
Your savings rate sets the date, not your salary
The finding that makes early retirement arithmetic surprising is that the years to financial independence depend almost entirely on the share of income you save, not the amount. Saving 10% of your income takes roughly fifty years from zero; 25% takes about thirty; 50% takes about seventeen; 65% takes around ten.
The reason is that every extra point of savings rate works twice. It raises the amount going in and lowers the spending the pot eventually has to support. A raise you spend moves the date barely at all; a raise you save moves it twice.
Where the 4% rule came from, and what it assumed
The 4% figure comes from studies of historical US market returns, asking what withdrawal rate would have survived every thirty-year window including the worst. It is a useful anchor and a poor law.
Three assumptions matter. It was derived from US returns, which were among the best of the twentieth century; the same test on most other markets gives a lower safe rate. It was tested over thirty years, so retiring at forty asks it to do something it was never tested for. And it assumes a portfolio heavily weighted to equities, held through the crashes without flinching.
Retiring early on a long horizon, many people work from 3.25–3.5% instead, which is the difference between needing 25 and 30 times your spending. Adjust the withdrawal rate above and watch the target move — it is the most consequential input on the page.
Sequence risk is the thing that actually breaks plans
Two retirements with identical average returns can end very differently depending on when the bad years arrive. A crash in the first five years, while you are selling assets to live on, does damage that later good years cannot undo. The same crash twenty years in is survivable.
This is why a cash buffer of one to three years' spending matters more than its modest return cost suggests. It lets you avoid selling into a fall, which is the mechanism by which sequence risk does its harm.
What this model simplifies
- Returns are steady here; real ones are not. A smooth line gives a single date where reality gives a range.
- Tax is not modelled. Where your money sits — pension, tax-advantaged account, or ordinary brokerage — changes both what you accumulate and what you can reach before pension age.
- State and workplace pensions are separate. They start later, which is why many plans need a larger bridge to pension age and a smaller pot after it.
- Health cover. In countries without universal coverage this is one of the largest line items in an early retirement, and the gap before state eligibility is the expensive part.
Compare two scenarios
Snapshot your current numbers, change any input, then snapshot again to see the difference side by side.
No scenarios saved yet — enter your numbers above, then click Save as A.
| Metric | Scenario A | Scenario B | Difference |
|---|
What changes in New Zealand
- NZ Super is paid from 65 and is not means-tested: what you earned or saved does not reduce it. From 1 April 2026 a single person living alone gets $1,294.74 a fortnight before tax ($1,110.30 after tax at the M code); each partner in a couple gets $984.28.
- Eligibility depends on residence, not contributions: you generally need to have lived in New Zealand for a set number of years after age 20, so recent arrivals should check before counting on it.
- KiwiSaver is locked until 65 except for a first home, serious hardship, serious illness or permanent emigration, so an early retirement has to be bridged from savings held outside it.
- New Zealand has no general capital gains tax. Managed funds are usually PIEs taxed at your prescribed investor rate (10.5%, 17.5% or 28%), and offshore shares costing over $50,000 fall under the foreign investment fund rules.
Data reference (New Zealand): Work and Income: NZ Super rates from 1 April 2026 ($1,294.74/fortnight gross, single living alone ≈ $2,805/month) · figures as of 2026-11 · NZ Super rate read on 2026-11-03 against the named source. The other inputs are example values for you to change, not New Zealand data. General information, not advice.. See our methodology for how every figure is sourced and dated.
Get an email when New Zealand rules change
Tax bands, allowances and benefit rates change every year. We email you when a rule our New Zealand calculators use changes, usually a few times a year. Confirm by email; unsubscribe in one click.
Was this page useful?
Thank you.