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The 33-year-old performed poorly in New Zealand's two-Test series in Australia last month, scoring 19 and four in the first test, nine and 16 in the second. Australia won the series 2-0.
Richardson did not fare much better against lowly Bangladesh, scoring 15 and 28 in the two Tests the Kiwis played there earlier this year.
"It is hard to let go from playing all competitive cricket, as it has been such a big part in my life, but the decision
"I have been contemplating retiring for the past year.
"Many cricketers have gone much longer than four tests without scoring runs, but it highlighted to me that I am no longer in the mind-set I was in when I enjoyed playing the most."
New Zealand Cricket chief executive Martin Snedden said Richardson had been a determined player and his retirement would be a loss for the game.
Richardson will continue to play for the State Auckland Aces and is seeking a media career.
