Your retirement
income guaranteed

With Simplicity you can retire with a guaranteed income for the rest of your life.

How it works

Our Guaranteed Income Fund pays you 5% in retirement, after tax and fees, for the rest of your life.

Payments are on the same day as NZ Super, and the same every time.

Payments are higher if you invest after 65. You can lock in your retirement income before 65 too.

The income is paid from your returns, and capital if necessary. An insurance policy guarantees the same income payments, even if your investment goes to zero.

You can access some or all of your money at any time, without penalty. The fund balance gets paid to your estate.

The charges are the same as our other KiwiSaver funds, plus an insurance premium of 1.3% to guarantee your income. The minimum investment amount is $20,000.

For more details see our FAQs below or the Product Disclosure Statement here.
How your money is protected

All fund investments are held for your benefit by the Government owned Public Trust, as Trustee and Supervisor.

Simplicity is a non profit KiwiSaver Manager, licenced and regulated by the Financial Markets Authority.

Income payments are insured by Lifetime, a NZ insurance company licenced and regulated by the Reserve Bank.

The fund is diversified, with over 3,000 investments in 23 countries. NZ investments are managed by Simplicity and overseas ones by Vanguard, the worlds second largest asset manager.
What the experts say

Michael Cullen
Former Minister of Finance

Diana Crossan
Former Retirement Commissioner

Michael Cullen
Former Minister of Finance

Diana Crossan
Former Retirement Commissioner

What would my income be?
I'm investing
$ at age


My Investment:  $350,000

Age:  65

Guaranteed fortnightly after tax income:  $673.08 i.e. 5.1% per annum

Income Lasts :  For Life

Access to your money:  At any time

Balance paid:  To your estate

These are projections only, assuming an annualised before tax return of 5.93%, Prescribed Investor Rate (PIR) of 17.5% and fees of 1.6%, comprising 0.3% fund management fees and 1.3% insurance fee. The projections are before inflation, and assume that fees and returns remain constant. The actual returns of the fund will vary, as will your balance in the fund. The guaranteed income amount will remain the same, regardless of movements in your fund balance.
Q:Is this like a term deposit?

No. You are investing into a diversified KiwiSaver investment fund.

A term deposit pays you interest on your capital and the amount you invested remains the same. 

The guaranteed income fund pays you an income from the interest and capital returns of your investment. If these returns aren’t enough to meet your income payments, it draws down on your capital to meet the deficit. For an example of how the fund works, see Page 11 of our OMI. 

If your investment in the fund ever runs out, an insurance policy continues to pay you the same income for the rest of your life. You can find the full details here on our Product Disclosure Statement. 

You can withdraw the balance from your investment fund, partially or wholly, at any time, with no break fees or penalties.

Please note: You must be over 65 and have been in KiwiSaver for at least 5 years to qualify for withdrawals.

Q:Can I switch to the fund before 65?

Yes, you can. If you switch before 65, your future income will be based on your initial investment (plus all contributions and returns) or your current market balance at 65, whichever is higher.  

Due to the higher fees in this fund (which pays for the insurance), most investors should consider investing in the fund only after age 60.


Q:Who is the Guaranteed Income Fund suited to?

The fund is most suitable for KiwiSaver members who are between age 60 and up to age 90 and who are seeking a guaranteed minimum level of income from their KiwiSaver fund to supplement their National Superannuation payments.

The Guaranteed Income Fund is a KiwiSaver fund. Therefore, to invest in this fund you must be a member of Simplicity’s KiwiSaver scheme or transfer from your existing KiwiSaver scheme to Simplicity in order to be eligible to invest in this fund. For an example of how it works, please see Page 11 of our OMI here. 

If you are over 65 and not in KiwiSaver it’s not possible to join the fund. As the law currently stands, no one can join KiwiSaver after age 65. The current Government has indicated it wants to allow people over 65 to join KiwiSaver, and we will speak with the next Government on this matter. We think it’s only fair that everyone should be able to join KiwiSaver.


Q:Is my capital guaranteed?

No. The investment is not guaranteed and the balance of your investment may decline. The income payments are guaranteed even if your investment in the fund goes to zero ($0).

Q:How do you guarantee my income?

The fund has an insurance policy with Lifetime Income Ltd, a New Zealand owned insurer. Lifetime are licensed and regulated by the Reserve Bank, and have to keep enough capital in a statutory account to pay any member income liabilities. Currently, for every $100 you invest in the fund, Lifetime will put $8 of their own capital with the Reserve Bank to meet any future income payments you might have if your capital ever runs out.  For further details of the insurance protection offered through Lifetime Income Ltd, please refer to Page 16 of the OMI here. 

You can find out about Lifetime Income Ltd here

Q:What returns will I get?

The income from your investment will be set when you begin withdrawing, however your investment capital will go up and down with the markets.  You can see the value of your fund daily using your member login. For an example of how this works, please read the next question: "How can you pay these rates?"


Q:How can you pay these rates?

You are investing into a KiwiSaver Balanced Fund and historically the total return from these types of investments have been above term deposit rates. 

The income paid to you is a mix of capital gains and capital drawings. If your money runs out the insurance policy kicks in and continues to pay you the same level of income for the rest of your life.

Here’s an example for an investor with $100,000 invested. 

Example – How the Guaranteed Income Fund works:

Peter is aged 60.  He transfers his balance of $100,000 from another KiwiSaver scheme into Simplicity's Guaranteed Income Fund.  Peter is eligible to make a withdrawal from the Scheme at age 65 and chooses to start receiving his retirement income immediately.  This graph shows Peter’s regular retirement income payments and investment movements over his life.

This graph is for illustration purposes and should not be regarded as a forecast of your investment or future performance or income payments.  An assumption of 5.9% gross return (before fees, taxes and insurance premiums have been deducted) has been made over future investment returns of the Guaranteed Income Fund.  Fees, taxes and insurance premiums are as detailed in the PDS.  Different assumptions will produce different outcomes.  For example, if the investment returns are higher than those used in the graph it will take longer for the account balance to run out.  Conversely, if the investment returns are lower the account balance will run out earlier.

Example explained

Age 60

  • Peter made his initial investment of $100,000 in the Guaranteed Income Fund.  

  • This will be the minimum amount he will receive a 5% annual income from when he retires.

Age 65

  • Peter reaches the age of entitlement to NZ Superannuation and is eligible to make a withdrawal from the Scheme.  

  • He’s chosen to start receiving his Retirement Income immediately to help ‘top up’ his NZ Superannuation payments.

  • We’ve compared Peter’s fund value when he chose to invest in the Guaranteed Income Fund (i.e. at age 60) and at the date he has chosen to start receiving his Retirement Income (i.e. at age 65). Given the net positive investment returns over five years Peter’s fund value has grown to $114,690 at age 65.  This is the amount which we’ll use to calculate Retirement Income payments, which is called his Protected Income Base.

  • At age 65, Peter’s Retirement Income Rate is 5.00% per-annum.  Peter’s Retirement Income is $5,734.50 per year ($114,690 x 5.00%) or $220.58 per fortnight.

  • If Peter’s fund value at 65 has been less than $100,000, Peter still receives 5% annually on the initial $100,000 he invested (unless he has made a withdrawal).

Age 91

  • Peter’s initial investment has run out, but he’ll continue to receive his Retirement Income until he dies because his Retirement Income is insured.

Age 97

  • After a long life, Peter passes away surrounded by his family.  Peter’s initial investment and additional contributions ran out at age 91. However, because his retirement income is insured, Peter continued to receive $220.58 each fortnight for the following six years.

Q:What are the fees?

The base fee for the fund is the same as all Simplicity Funds, $30 per year administration fee and 0.31% per year management fee.

On top of this, there is a 1.3% per annum fee for the insurance to guarantee your income.

That means the total you will pay is $30 + 1.61% per annum.


Q:Can I take my money out?

Yes. You can withdraw up to 20% of your funds at any time so long as you're 65 or older and the income you receive will be reduced, based on the balance remaining. You can also withdraw your entire balance at any time or transfer to another fund. There are no withdrawal fees. Individuals transferring into Simplicity from a complying Australian Superannuation Scheme may be eligible to withdraw their funds from age 60, due to the retirement age being earlier in Australia. 


Q:Can I invest if I’m not in KiwiSaver?

If you are under 65 and not in KiwiSaver you can join. Under current legislation, you need to be at least 65 years of age and have been in a KiwiSaver scheme for at least 5 years in order to be able to draw on your KiwiSaver investment.

If you want to receive a guaranteed income, the Insurer Lifetime income offer a fund with approximately the same benefits, but with a higher fee. You can see their website here

Q:Why hasn’t this been offered in NZ before?

Good question! It has been available for 18 months in a non KiwiSaver version via Lifetime Income, but no other KiwiSaver Scheme offers the same type of product in NZ. Why not? You would need to ask them. Our opinion is that it’s been too profitable for them to offer low returning fixed interest products, and high fee funds, to their customers. As a non-profit, Simplicity wants to make money for its members, not from its members.

Q:What guaranteed income will I get?

From age 65, you will be paid a minimum of 5% per annum, after tax and fees, for the rest of your life. If you join later, you will be paid more. Here’s a table showing how much you’ll get depending on when you join.

Payment Rates

This table shows the Payment Rates of the Retirement Income, depending upon at what age you elect to receive it:

Age at the first Retirement Income Payment
Retirement Income Payment Rate
(Percentage of your Protected Income Base)


5.00% p.a.


5.10% p.a.


5.20% p.a.


5.30% p.a.


5.40% p.a.


5.50% p.a.


5.60% p.a.


5.70% p.a.


5.80% p.a.


5.90% p.a.


6.00% p.a.


6.10% p.a.


6.20% p.a.


6.30% p.a.


6.40% p.a.


6.50% p.a.


6.60% p.a.


6.70% p.a.


6.80% p.a.


6.90% p.a.


7.00% p.a.


7.10% p.a.


7.20% p.a.


7.30% p.a.


7.40% p.a.


7.50% p.a.

For an example of how the Guaranteed Income Fund works, please see Page 11 of our OMI here.  


Q:Can I take some money out and leave the rest in?

Yes, you can take up to 20% out at any one time. If you wish to take out more that 20% of your balance then we will require you to make a full withdrawal.

Q:Who is involved?

Simplicity is the manager of the Scheme. We are a not for profit company, 100% owned by the Simplicity Charitable Trust. Our contact details are:

Simplicity NZ Ltd

24 Hamana Street, Auckland 0622

Phone: (09) 446 6112


Supervisor: Public Trust

Custodian: Simplicity Nominees Limited - holds the assets of the Scheme on trust

Administration Manager: MMC Limited - provides registry, accounting, pricing and valuation services for the Fund

Investment Manager: Vanguard Asset Management Limited - provides international asset management through its range of global funds.

Insurer: Lifetime Income Limited - provides the insurance for the Guaranteed Income Fund.

Q:What happens if the Insurance company fails?

If Lifetime Income fails, a receiver is appointed to manage the insurer's liabilities. The receiver's costs take priority over the insurance liabilities, so there may not be enough in the Statutory fund to continue making the income payments. Please refer to Page 16 of our OMI for details of the insurance arrangements and Lifetime Income Ltd. 

Q:What happens if Simplicity fails?

In the unlikely event that the Simplicity KiwiSaver scheme is forced to close, our Supervisor (Public Trust) will appoint a new manager to run the scheme. All of the underlying investments and cash are held in the name of a nominee company administered by Public Trust. Simplicity can’t directly access these.

Q:What happens if the markets decline or collapse?

If your investment in the fund declines in value, your income will remain the same for the rest of your life. The insurance policy accounts for the possibility of markets declining and the value of your investment declining over time.  The risk to your guaranteed income is the possibility of Lifetime Income Ltd being unable to make the income payments. Please refer to the previous question: What happens if the insurance company fails. 

Q:How can you get your money out?

You can get your money out of the Scheme when you are 65, as long as you’ve been a member of a KiwiSaver scheme or a complying superannuation fund (if you transferred from that fund) for at least five years.

Any amount transferred from an Australian complying superannuation fund (excluding investment returns on that amount), up to your account balance, can be withdrawn when you reach age 60, if you have ‘retired’ in terms of the relevant Australian legislation.

If you’re invested in the Guaranteed Income Fund you can choose to start receiving your regular payments (Retirement Income) at any time between when you become eligible to make a withdrawal out of the Scheme up to age 90.

Early withdrawals may also be available for the purchase of a first (or in limited circumstances, second) home, significant financial hardship, serious illness, permanent emigration (excluding Australia), death, and to pay tax or student loan liabilities on foreign superannuation transfers. Conditions will apply.

Subject to relevant law, we may defer payment of a benefit in certain circumstances.


Q:Are there any break fees of penalties if I take my money out?


Q:Where else is this investment offered?

This type of Fund (technically known as a variable rate annuity) is widely available in the US, Canada, Britain, Japan and Europe. In the US alone, over $2.5 trillion is invested in these types of products. This is not a new product, it’s just new to New Zealand.

Q:What do I pay in tax?

The Scheme is a portfolio investment entity. The amount of tax you pay is based on your prescribed investor rate (PIR).

To determine your PIR, see the IRD website on PIR here. 

If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department. It is your responsibility to tell us your PIR when you invest or if your PIR changes. If you do not tell us, a default rate may be applied. If the advised PIR is lower than the correct PIR, you will need to complete a personal tax return and pay any tax shortfall, interest, and penalties. If the default rate or the advised PIR is higher than the correct PIR, you will not get a refund of any overpaid tax.

See the ‘Other material information’ document on our website or on the Disclose register at disclose for more information about the tax consequences of an investment in the Scheme.

Q:What is the target asset allocation for the Guaranteed Income Fund?

The Guaranteed Income Fund target asset allocations are 45% in growth assets (29% international shares and 16% Australasian shares) and 55% in income assets (8% cash and 47% split between New Zealand and International fixed interest).

Q:What is a protected income base?

Your Protected Income Base is used to determine your Retirement Income. Initially this is the amount you have invested in the Guaranteed Income Fund.  If you choose to make a partial withdrawal from your KiwiSaver fund this will reduce your Protected Income Base and consequently your Retirement Income amount.

Q:Will I receive Government Contributions?

As the Guaranteed Income Fund is part of the Simplicity KiwiSaver scheme, the standard KiwiSaver scheme rules apply.

Government contributions cease when the member reaches the age of eligibility for NZ super (currently 65) and has been a member for at least 5 years.

If you join at say age 64, you are entitled to receive Government contributions for the next 5 years on the proviso you deposit at least $1,042.86 to your account before 30 June.

If you are new to KiwiSaver and join part way through the year (i.e. between 1 July to 30 June), live in New Zealand and contribute at least $1042.86 before 30 June, you may be entitled to a Government contribution that is pro-rated based on the number of days you have been a KiwiSaver member.

Please note that any government contributions received for periods you were living overseas will be paid back to Inland Revenue at the time of withdrawal or closure of your KiwiSaver account.


Q:Where can I find your fund returns?

All our scheme returns can be found on our website under the Documents link and by email request to

Q:What is the minimum investment?

To invest in the Guaranteed Income Fund, and receive a guaranteed income for life, your minimum balance must be at least $20,000.00 

For KiwiSaver transfers where the balance is less than $20,000, you will need to choose a different Simplicity KiwiSaver fund.

Please check the value of your KiwiSaver fund before you apply to invest into the Guaranteed Income Fund.

Q:Can I make regular contributions to the Guaranteed Income Fund?

Yes, there are no restrictions on the amount or frequency of contributions you can make to your fund. However, from the point at which you decide to start receiving your retirement income, you can no longer contribute. 

However, once you start receiving the guaranteed income payments the minimum contribution amount is $50,000 per deposit.

Q:Can I transfer my UK pension or KiwiSaver funds (with UK pension funds) to the Guaranteed Income Fund?

No. Simplicity KiwiSaver scheme is not a compliant Qualifying Recognised Overseas Pension Scheme (QROPS).

Simplicity does not accept any UK pension transfers or any KiwiSaver transfers that contain a UK pension component.

Q:Where can I see your Product Disclosure Statement?

For more details about the Simplicity KiwiSaver Scheme, and our Guaranteed Income Fund, please read our Product Disclosure Statement here. 

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