Are you contributing enough for retirement?
26 February 2025
Contributing the minimum amount to your KiwiSaver account is a great start – but it's unlikely to be enough to give you the retirement you want. Here’s what to consider.
Your KiwiSaver contributions for future you
When planning for retirement, it’s tempting to rely on the minimum KiwiSaver contribution rate of 3% of your income. However, this may not be enough to set yourself up for a comfortable and financially secure retirement.
Here's why contributing only 3% might fall short and what you can do to better prepare for your future.
The reality of retirement costs
Retirement is often more expensive than people anticipate. Healthcare costs, inflation, and unexpected expenses can quickly eat into your savings.
The reality is, relying on NZ Super to pay for retirement may leave you well short of the lifestyle you were used to while working. This is where KiwiSaver is so important – it can provide you the additional savings needed to help achieve the lifestyle you want in retirement.
So how much extra will you need? Well, that really depends on the type of lifestyle you’re planning, and how long you may live for. Think about how much you spend today, and how much you’d be able to reduce that by when you stop working.
NZ Super
The NZ Government superannuation for a single person is $522 weekly – is that enough to maintain your lifestyle?
Saving a higher contribution rate than the minimum of 3% can help you to build a bigger nest egg that can support you through your retirement years. And the earlier you start, the more time you have to save for a comfortable retirement.
How Kiwis compare
The minimum KiwiSaver contribution rates are 3% for an employee and 3% for an employer, minus the tax paid on your employer’s contribution. This means that if you’re only contributing the minimum, in total you’re contributing less than 6% of your gross salary each year.
In comparison, other countries have higher contribution rates. For example, in Australia, employers contribute 11.5% of an eligible employee's salary to their Super account, and employees can make additional voluntary contributions. This higher contribution rate results in far larger retirement balances and a more comfortable retirement.
Find out if you’re on track
While contributing 3% of your income to KiwiSaver is a good start, it may not be enough to give you the lifestyle you want after 65. By increasing your contribution rate, you can build a more secure financial future – even a small increase each pay can make a big difference in the long term.
To find out if you're on track for the retirement lifestyle you want, use our ANZ KiwiSaver calculator. It can help you understand how much you’re on track to have at 65, how much you might need and what adjustments you could make to meet your retirement savings goals.
Important information
ANZ New Zealand Investments Limited ('ANZ Investments') is the issuer and manager of the ANZ KiwiSaver Scheme. Download the guide and product disclosure statement from our documents and forms page or ask at any branch.
ANZ Investments is the issuer and manager of the ANZ Default KiwiSaver Scheme. The scheme is no longer a default scheme and is closed to new members. Important information about the ANZ Default KiwiSaver Scheme is available at Documents and forms and by searching ‘ANZ Default KiwiSaver Scheme’ on the offer register at disclose-register.companiesoffice.govt.nz.
ANZ Investments is not an authorised deposit taking institution (ADI) under Australian law and investments in the ANZ KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (together, the 'schemes') aren’t deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, or their subsidiaries (together ‘ANZ Group’). ANZ Group doesn’t stand behind or guarantee ANZ Investments. Investments in the schemes are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group won’t be liable to you for the capital value or performance of your investment.
This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product. To talk to one of our team at ANZ, please call 0800 736 034, or for more information about ANZ’s financial advice service, see our financial advice provider disclosure statement (PDF 39.9KB).