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FIRE Calculator

Find your FIRE number, the age you could retire early from your savings rate, your Coast FIRE number, and how much you’d need outside KiwiSaver before you can withdraw it at 65.

$

Including retirement accounts

$

A year, after tax, plus your KiwiSaver contributions

$

A year. You invest $23,000: 35% of your pay

More options· 7% growth, 4% withdrawals
%

A year, after fees

%

A year

%

4% is the usual rule

%

Of what you spend now: $42,000 a year

If you stopped investing

You could retire at

53

In 23 years, 8 months, investing 35% of your pay

Your FIRE number
$1,050,000
Savings rate
35%
Your FIRE number: where it comes from
  • Invested now$40,000
  • You invest$544,333
  • Investment growth$469,110

What this means

Your FIRE number is what you’d spend in a year divided by the 4% you’d take out. Spending $1,000 a year less lowers it by $25,000.

That’s why spending matters twice: you invest more now and need less later.

Next step

Your investments by age, split by where the money came from
$1,200,000$600,000$0
313336394245485153.7
Invested nowYou investGrowthFIRE number

Coast FIRE

Coast FIRE number today$233,395
Invested now$40,000

Keep investing until about 41. After that, your investments could grow to $1,050,000 by 65 without you investing any more, so you’d only need to earn what you spend.

Before you can use your KiwiSaver

You retire at53
You can use your KiwiSaver from65
Years to bridge11½ years
Spending to cover$476,000

Hold about $476,000 of your FIRE money outside KiwiSaver, such as in managed funds or shares.

What would change it

Spend 10% lessAt 49 · 4 years sooner
Spend 10% moreAt 58 · 4½ years later
Growth 1% lowerAt 56 · 2½ years later
Withdraw 3.5% a yearAt 55 · 2 years later

Spending less helps twice: you invest more now, and you need a smaller pot later.

Assumptions in this estimate
  • Everything is in today’s money: your pay, spending and investments keep pace with 2.5% inflation, so 7% growth is 4.4% a year after inflation. Real returns go up and down; a bad first few years of retirement matters most.
  • Your FIRE number is what you’d spend in a year of retirement divided by the withdrawal rate: at 4%, 25 times your spending. The 4% rule comes from US studies of 30-year retirements; for a longer early retirement, many people use 3% to 3.5%.
  • What you don’t spend is invested each month. Taxes on investment growth and withdrawals aren’t included.
  • NZ Super isn’t included. It would cover some of your spending later in life, so you may need less.
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How the calculator works

  1. Your savings rate: what you don’t spend from your take-home pay is invested each month. Count your KiwiSaver contributions as part of your pay, since they’re money you save.
  2. Your FIRE number: your yearly spending in retirement divided by the withdrawal rate (4% means 25 times your spending).
  3. Growth: your investments grow at the rate you choose. Everything is in today’s money, so your pay and spending rise with inflation.

Your savings rate sets the timeline

Starting from nothing, with 7% growth, 2.5% inflation and a 4% withdrawal rate:

You invest Years to FIRE
10% 55
20% 39
30% 29
40% 22
50% 17
60% 13
70% 9

Earning more doesn’t change these figures unless you invest a bigger share of it.

Example

At 30, with $40,000 invested, $65,000 of take-home pay and $42,000 of spending a year, you invest 35% of your pay. Your FIRE number is $1,050,000 and you could retire at 53. Spend 10% less, and you could retire at 49.

You’d reach Coast FIRE at about 41: from then on, your investments could grow to your FIRE number by 65 on their own.

Bridge years: money outside KiwiSaver

KiwiSaver opens at 65, later than retirement accounts in most countries, so the bridge is long. Retire at 53 and you’d have 11½ years, about $476,000 of spending, to cover from investments you can get at:

  • Managed funds and ETFs (PIEs) can be sold at any time, and are taxed at your prescribed investor rate (PIR).
  • Shares held directly can be sold at any time too.

With a long bridge, it can make sense to put only enough into KiwiSaver to get your employer’s contribution and the government contribution, and invest the rest outside it. See what your KiwiSaver could grow to with our KiwiSaver calculator, or plan your spending with the budget calculator.

Last updated

Frequently asked questions

What is FIRE?

FIRE stands for financial independence, retire early. You invest a big share of your pay until your investments can pay for your lifestyle, and work becomes optional. Your savings rate decides how soon.

How much do I need to retire early in New Zealand?

A common rule is 25 times your yearly spending, which allows for withdrawing 4% a year. Spending $42,000 a year, that’s $1,050,000. For a retirement of 40 years or more, many people use 3.5%, which needs about $1,200,000.

What is Coast FIRE?

Coast FIRE is the point where your KiwiSaver and investments could grow to your FIRE number by a normal retirement age with nothing more added. You can then work only to cover your spending.

Can I take money out of KiwiSaver before 65?

Usually not for retiring early. You can withdraw it at 65, and before that only in cases such as buying your first home, serious illness or significant financial hardship.

Should I count NZ Super?

This calculator doesn’t include it. NZ Super starts at 65 and isn’t means-tested, so most people get it. It would pay for part of your spending from 65, so you may need a smaller pot.