Originally published: March 2023. Updated: February 2026 to reflect current cost-of-living conditions and KiwiSaver guidance.

Saving money has a direct effect on how secure we feel, but with the cost of living in New Zealand still high in 2026, how much can we realistically put aside?

You’ll often hear that you should save 20% of your income. That can be a helpful benchmark - but it’s not one-size-fits-all.

Some people can save more. For others, even reaching 10% can feel hard. The key? Something is better than nothing.

1. Look closely at your goals 

Start by defining what you're saving for.

Break your goals into:

• Short-term goals (within 1–2 years)
  Holidays, emergency savings, unexpected bills.
• Medium-term goals (2–10 years)
  A car, renovations, a house deposit.
• Long-term goals (10+ years)
  Retirement, financial independence, supporting your family later on.

Once you know what you’re aiming for, saving becomes more concrete, not just a percentage you feel guilty about.

2. Put some deadlines on it 

For each goal:

• Work out how much you’ll need
• Set a realistic deadline
• Divide the total by the number of months until then

For example: If you want $15,000 in two years, you’ll need to save around $625 per month.

You may find you can’t fund every goal at once, and that’s okay. Prioritise what matters most right now. When you achieve one goal, you can redirect those savings toward the next.

3. Reassess what's realistic

Most of us want to save more than our income comfortably allows. That’s where reassessing helps. First, figure out what you can realistically set aside each month after covering essentials. By setting deadlines and cost estimates for your goals, you’ll see where you can downsize, move, or change your goals against the realities of your income.  

Build an emergency fund first

Aim for at least three months’ worth of essential expenses - rent or mortgage, food, utilities, insurance. This safety buffer matters more than ever in uncertain times. If three months feels overwhelming, start with one month and build from there.

Think about retirement too

Many Kiwis stick with the default 3% KiwiSaver contribution rate. But for most people, 3% alone may not be enough to maintain your lifestyle in retirement. Financial experts often suggest aiming for 10–15% of your income toward retirement over time (including KiwiSaver and employer contributions).

You don’t have to jump there immediately. Even increasing from 3% to 4% or 6% can make a significant long-term difference thanks to compounding returns.

There are many common barriers that can prevent people from saving money, but with practical steps, you can try and overcome these obstacles.

If saving feels difficult, you’re not alone. Here are common roadblocks and what you can do:

No clear budget

Without knowing where your money goes, it’s hard to control it. Tracking spending is the first step.

High expenses

Review subscriptions, insurance providers, utilities, and everyday spending habits. Small changes add up.

Debt

If you have high-interest debt (like credit cards), prioritise paying it down. Reducing interest costs frees up future savings.

Impulse spending

Pause before big purchases. Give yourself 24 hours to decide.

Lack of consistency

Automate your savings. Set up an automatic transfer on payday so you’re not relying on willpower.

Saving is a marathon, not a sprint

There’s no perfect percentage that works for everyone in New Zealand.

A good general guide is:

• 10–20% of income if possible
• Less if you’re starting out or paying down debt
• More if your income allows

What matters most is consistency. Even small, regular contributions build momentum over time, especially when invested wisely. Remember, saving money is a marathon, not a sprint. Make patience and persistence your friends.

*Kōura Wealth Limited is the issuer and manager of the Kōura KiwiSaver Scheme. A copy of the Product Disclosure Statement is available at kourawealth.co.nz/documents