Planning for Retirement
The Impact of Saving Earlier on Your Balance at Retirement
Click to read assumptions
These graphs are examples only to help you understand how different investment choices may affect KiwiSaver savings and retirement income. The figures and data used are for illustration only and may not reflect actual returns and actual balances. The starting salary is assumed to be $35,000. Please note that returns are likely to fluctuate due to investment and other risks, including loss of capital invested. Returns may be negative in some periods. These graphs are not intended to convey personalised advice, and we recommend that you consult with your financial adviser or a BNZ Authorised Financial Adviser before making any decisions.
The figures in these graphs use assumptions consistent with those used on the Sorted website (based on January 2015 assumptions) and are as follows: (1) they have been adjusted for the effect of inflation at the rate of 2% so that the results are shown in today’s dollars, (2) employer contributions of 3% of the stated before-tax salary are taken into account after deduction of employer’s superannuation contribution tax at current applicable rates, (3) Government annual contributions appropriate to the contributions made and at today’s levels only are taken into account, (4) salaries will increase by 3.5% each year (1.5% increase plus 2% for inflation), (5) you take no contribution holidays (6) no amounts are withdrawn, (7) positive investment performance each year of 3.6% per annum for an investor in the Conservative Fund and 5.4% per annum for an investor in the Growth Fund net of fees and taxes using a Prescribed Investor (tax) Rate (PIR) of 17.5%, and (8) post retirement monthly income amounts for all examples are based on: (a) regular withdrawals of the amounts shown being made at the end of each month for a period of 25 years from age 65 to age 90, (b) positive investment performance each year of 3.6% per annum for an investor in the Conservative Fund and 5.4% per annum for an investor in the Growth Fund net of fees and taxes using a Prescribed Investor (tax) Rate (PIR) of 17.5%, and (c) no capital remaining at the end of the period.
To be eligible, you must be 18 years or older and and mainly live in New Zealand. If you don’t meet these requirements for the full MTC year, the maximum amount you’ll get will be based on the time you are eligible for.
IF YOU WOULD LIKE TO GET THE MOST OUT OF YOUR KIWISAVER