my contribution rate is .
Contribution rate :
How this calculator works:
Compare: Fund type
The calculator compares the NZ Funds LifeCycle Process 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 the average 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 Process 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 LifeCycle Process, 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, an initial retirement age of 65, and the appropriate Prescribed Investor Rate (PIR) for your current salary adjusted over time (salary increases over time at 3.5% per annum; no other incomes 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, and a PIR of 28%.
• The calculator uses actual historical market returns from July 2002 to June 2017 based on the market indices listed below.
• The calculator shows a net return for the NZ Funds LifeCycle Process by adjusting for total annual fund charges and investor tax. Total annual fund charges are based on the estimated total annual fund charges for each Strategy set out in the current PDS. No adjustment is made for the member administration fee of $36 per annum.
The relevant market indices used for each Strategy are:
Bloomberg Barclays Global Aggregate Corporate Total Return Index hedged to NZD:50%
S&P/NZX Investment Grade Corporate Bond Index Total Return: 50%
S&P/NZX Bank Bills 90 Day Total Return: 30%
S&P/NZX 50 Portfolio Index Gross with Imputation: 25%
S&P/ASX Accumulation 200 Index hedged to NZD: 10%
MSCI ACWI hedged into NZD: 35%
MSCI ACWI hedged into NZD: 70%
S&P/NZX 50 Portfolio Index Gross with Imputation: 20%
S&P/ASX Accumulation 200 Index hedged to NZD: 10%
• The historical market returns used in the calculator for the Average Default Fund is based on the average asset allocation of the default KiwiSaver funds as at 31 March 2019 (which was 20.28% growth assets and 79.72% income assets) and uses the market indices for each Strategy listed above in the following proportions:
75% Income Strategy
15% Inflation Strategy1
10% Growth Strategy
The calculator shows a net return for the Average Default Fund by adjusting for total annual fund charges and investor tax. The total annual fund charges used for the Average Default Fund are the average total annual fund charges for the default KiwiSaver funds as at 31 March 2018 (which was 0.58%).
• 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 future dollars which do not take into account the impact of inflation on your future spending power.
• 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 return series used and the outcomes presented in the calculator are illustrative only, and past performance is no indication of future performance.
• 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.
1The Inflation Strategy has a target asset allocation of 30% income assets and 70% growth assets and therefore the market indices listed above for the Inflation Strategy have been included in the returns calculations for the Average Default Fund.