Your retirement income guarantee

Financial security at any age is desirable but especially when you hit retirement age or cease working for a living. Our Guaranteed Income Fund is designed for those wanting the peace of mind of a guaranteed income while staying invested. Receive annual payments of 4.2% of your investment balance (after tax and fees) for life. From age 60, you can transition to this fund, which is similar to our Balanced Fund in its investments. When you turn 65, you can start receiving your guaranteed income. The 4.2% is paid on the higher of the amount invested since joining, or the balance when you turn 65 and start receiving payments. You can feel safe knowing that whatever happens in the market, you'll receive a 4.2% guaranteed income, for life. You can leave the fund at any time, penalty free, or withdraw any amount as long as you leave a minimum balance of $20,000, and reset your 4.2% payment on the amount left.

How does it work

Our Guaranteed Income Fund pays you 4.2% per annum at age 65, after tax and fees, for the rest of your life.
Payments are on the same day as NZ Super, and the same amount every time.
The payments will be higher if you start the regular withdrawals later than age 65. You can lock in your retirement income based on the amount you invest, so you can wait until later to start the withdrawals.
The income is paid from your fund balance, which incorporates returns on a daily basis. Your balance is expected to reduce over time, but the payments stay the same. That’s because 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, however that will reduce your regular income payments. When you die, any remaining fund balance gets paid to your estate.
The charges are the same as our other KiwiSaver funds, plus an insurance premium of 1.25% 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 do the experts say

Michael Cullen
Former Minister of Finance

Diana Crossan
Former Retirement Commissioner

Guaranteed Income Fund Calculator

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

My Guaranteed Income

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 after fees and after tax return of 3.5%, $30 administration fee and an insurance premium of 1.25%. 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.


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Guaranteed Income

Risk Level

The Guaranteed Income Fund provides investors with a mix of growth and income assets. On retirement, it provides investors with a regular income for life, even if their original investment runs out. The return from the Fund is likely to be lower over the longer term (10 years or more) than the Growth Fund, but the value of its investments is likely to fluctuate more than Conservative Fund. Read more

1 year return
Returns are after fees before tax
as at 30/09/2020
Risk Level

* The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way.

This risk indicator is not a guarantee of the fund’s future performance. As the fund has not been in existence for five years, the risk indicator is based on five-year information including actual performance figures from 24 October 2017 and market returns data for the period prior to that date. As a result of this, the risk indicator may provide a less reliable indicator of the potential future volatility of the fund. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates. See the product disclosure statement (PDS) for more information about the risks associated with investing in this fund.
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