How this calculator works
The retirement projections in this calculator are based on assumptions set by the Government and are designed for use by people between the ages of 18 and 64. A summary of the Government’s assumptions is provided below, however, further details can be found on the Financial Markets Authority website at this link.
Assumptions used:
- The ‘amount saved’ value is in today’s dollars so you can compare with the cost of living today. To convert to today’s dollars the projections are adjusted for inflation, and the inflation assumption is currently 2% per annum.
- Salary and wages, and any regular voluntary contributions, are assumed to increase by 3.5% each year.
- Regular voluntary contributions will continue to be made each year until the age of 65.
- No savings suspensions are taken.
- No amounts are withdrawn for first home purchase (unless this calculation option is selected) or financial hardship, or (for the purpose of estimating the weekly income amount) as a lump sum after age 65.
- You receive the maximum Government contribution of $521 as at the end of each KiwiSaver year which runs from 1 July to 30 June. (to understand how the Government contribution works, see our FAQ - Qualifying for Government contributions)
- You remain in your chosen fund until age 65. The assumed rate of return for the fund selected is based on which fund type it aligns with, as shown in the table below. The assumed rates of return are after tax and after fees.
- After 65, the balance will earn an assumed 2.5% rate of return each year (after fees and tax).
- For the income amount, you will make regular withdrawals from retirement until age 90, when your balance reaches zero.
- NZ Superannuation calculation based on the single living alone rate of $496 per week with tax code M (rounded to the nearest dollar). For different tax codes please visit Work and income - NZ Super and Veteran's Pension payment rates at this link.
Return after fees and tax have been deducted
Type of Fund |
Simplicity KiwiSaver Scheme Fund* |
Assumed rate of return (after fees and tax) |
Defensive |
Defensive Fund |
1.5% |
Conservative |
Conservative Fund |
2.5% |
Balanced |
Balanced Fund or Default Fund |
3.5% |
Growth |
Growth Fund |
4.5% |
Aggressive |
High Growth Fund |
5.5% |
