Could you live on $20k a year?

(iStock)
(iStock)

Yes, $20,000 a year is the new NZ Superannuation amount you get once you reach 65 years old. That's $385 per week.

If you are a couple heading into retirement, it doesn't double, it's $30,700.

According to the sorted.org website, the level of NZ Super is set by the Government each year as the cost of living and wages inflation is taken into account.

The after-tax super rate for couples who both qualify is based on 66 percent of the "average ordinary time wage" after tax. For single people, the after-tax NZ Super is around 40 percent that average wage.

Not according to research by Massey University's Financial Education Centre. It publishes a study of how much people are spending on their retirement, based on figures from Statistics NZ.

It splits what retirees are spending into a 'no frills' lifestyle and a 'choices' lifestyle.

A 'no frills' lifestyle for one person in the cities costs about $490 a week. In the provinces it's $419.

A 'choices' lifestyle in a city will cost one person about $754 per week, and $782 in the provinces.

The figures are a little better if you are in a relationship.

The 'no frills' metro lifestyle will cost $523, and $678 in the provinces.

The 'choices' city-based lifestyle needs $1,092 a week, $1,012 in the provinces.

As the numbers reveal, NZ Super for a couple ($592) is only 'enough' if you live a no-frills lifestyle ($523) in a city.

Newshub.

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