Contribute more for a better retirement

James is 30 years old, earns $50,000 a year (before tax), and is in our Lifetimes option. Here’s what his total savings could look like under different contribution options when he’s 65.

*Refer to the bottom of this page for background information and numbers used in this case study.

The typical New Zealander is likely to be retired for at least 20 years.

Retiring at 65 and living on New Zealand Superannuation may not provide you with money for the little extras that can make life more pleasant, or for unexpected expenses or emergencies.

Currently, a single retired person receives New Zealand Superannuation of about $26,400 a year (before tax).

Married or de facto couples receive about $40,100 a year (before tax). That works out to be about $20,050 per person (before tax).

To get the most out of your retirement, you’ll probably need savings to add to your New Zealand Superannuation. Starting now and keeping up your contributions can help you achieve the retirement lifestyle you want.

We recommend you talk to one of our ANZ Investment Advisers about the investment options available to you.

This case study is an example to help you understand how your choices can affect your KiwiSaver savings. The figures used are for illustration only and may not reflect actual returns. The underlying return, tax and inflation assumptions are set by the Government.

The figures in this case study:

• Show projected savings, both:
  -    where they haven’t been adjusted for the effect of rising prices over time (that is, inflation), in which case the amount does not reflect the ‘real’ buying power in the future
  -    where they have been adjusted for inflation of 2% per year to show the ‘real’ buying power of the savings in the future

• Assume employer contributions are 3% of the stated before-tax salary, where applicable
• Apply Government contributions appropriate to the contributions made and at today’s levels only
• Assume salaries will increase by 3.5% each year, where applicable
• Assume positive investment performance in our funds each year of:

           -   Conservative Fund: 2.5%
           -   Conservative Balanced Fund: 3.5%
           -   Balanced Fund: 3.5%
           -   Balanced Growth Fund: 4.5%
           -  Growth Fund: 4.5%

• Show the investment performance figures:
  -  after fees, the fees used are an industry average for your fund type that may not reflect our fees, and
  -  after tax, using a prescribed investor rate of 28%

• Generally round savings to the nearest $1,000
• Account for tax on employer contributions, where applicable
• Assume the member has a date of birth of 1 July, with projected savings calculated in July.