Contribution rate :
Compare: Fund type
The calculator compares the NZ Funds LifeCycle investment option (which automatically allocates a member's investment across the Income, Inflation and Growth Strategies in the NZ Funds KiwiSaver Scheme each year, based on the member's age) to a KiwiSaver default fund.
The comparison shows the impact that asset allocation (the proportion invested in income versus growth assets) can have on your retirement savings. Please note the NZ Funds LifeCycle option may not be suitable for all investors (for example, it may be unsuitable for members who plan to make a first home purchase withdrawal in the short to medium term). For more information on the NZ Funds LifeCycle, see the current NZ Funds KiwiSaver Scheme Product Disclosure Statement (PDS) at www.nzfunds.co.nz.
This function looks at the impact of increasing the member's employee contribution rate (for employed members) or the member's voluntary annual contributions (for self-employed members).
Compare: Retirement age
The calculator assumes an initial retirement age of 65. This function looks at the impact of delaying the member's retirement age beyond 65. All employer and Government contributions cease at age 65 (but, as described below, employee and voluntary annual contributions continue).
Employment status: employed
Assumes monthly employee contributions as a percentage of salary, employer contributions of 3% less Employer Superannuation Contribution Tax (ESCT), no additional voluntary contributions, and an initial retirement age of 65 (salary increases over time at 3.5% per annum; no other income sources are considered).
Employment status: self-employed
Assumes an annual voluntary contribution paid at the beginning of each year, no employer contribution, an initial retirement age of 65.
• The calculator uses retirement savings projections from the Financial Markets Conduct Regulations 2014 Schedule 7A.
• Employee contributions and voluntary annual contributions continue each year until retirement without any savings suspension or other non-contributing periods.
• No withdrawals are made prior to retirement.
• Employee contributions, voluntary annual contributions, and employer contributions (where applicable), increase over time at 3.5% per annum (the assumed wage and salary inflation rate).
• The calculator is based on current Government policies and assumes the amounts of, and rules around, Government and employer contributions remain unchanged.
• All amounts are shown in current dollars.
• The results obtained through the calculator are not guaranteed to occur, and the calculator is simply a tool to help you understand how choices you make may affect the value of your KiwiSaver savings at retirement. The outcomes presented in the calculator are illustrative only.
• The calculator is intended as a guide only and does not constitute investment advice to any person. Before acting on the results of this calculator, you should consider your investment objectives, financial situation and needs, and if necessary, seek appropriate professional or financial advice
• To the extent permitted by law, neither NZ Funds nor any of its related parties accept any responsibility or liability arising from the use of this calculator.
Comparison from MyFiduciary report on lifecycle products in New Zealand, September 2019. Terminal wealth measured in today’s dollars at age 65 based on monte carlo simulation of member investing at age 25 with a starting salary of $75,000, 4% saving rate plus 3% employer contribution. Please click the below button to request a copy of the full report.
When selecting external investment managers, NZ Funds requires that they have in place an ESG policy that appropriately addresses ESG concerns. This policy may be different from NZ Funds’ responsible investing policy, and may permit the external investment manager to invest in securities that would be prohibited under NZ Funds’ responsible investing policy.
Where this is the case, NZ Funds will undertake an assessment of the underlying investment manager’s ESG policy, and may grant the underlying investment manager an exemption from complying with NZ Funds’ responsible investing policy.
NZ Funds will not grant an underlying investment manager an exemption where their ESG policy allows them to invest more than 20% of their portfolio in securities that would be prohibited under NZ Funds’ responsible investing policy, or where their investments in prohibited securities would result in an NZ Funds retail Portfolio or Strategy having an exposure of more than 10% to securities prohibited under NZ Funds’ responsible investing policy.