KiwiSaver Calculator

Updated 07 August 2020

How much money will you need in retirement?
Is your KiwiSaver fund performing?
Are you on track for a comfortable retirement?

Compare what you may have to what you will need. Our retirement calculator considers KiwiSaver contributions, how much you earn right now, how much you plan to spend during retirement, and how old you are. Simply slide the inputs below to match your situation, and click view report for a detailed calculation.

Please note, the KiwiSaver retirement projections generated by this KiwiSaver Calculator should be treated as a guide only. The calculations, explanations and assumptions are general and only intended to help you determine what your KiwiSaver balance might be at retirement. The KiwiSaver calculator is not in any way financial advice. 

Read this first: Salary input and assumption of annual increases

• In the calculator below, your year's income is driven by "your annual income (pre-tax)" (input 3)  and the % you select for "Expected annual pay rise" (input 6, currently set to 2%).
• If you want to retire on a percentage of your current salary, please move this to 0%. Otherwise, the "Percentage of current income you want during retirement" will be calculated using the expected annual pay rise percentage.
• The 2% default increase is to counteract the effects of inflation. For example, retiring on 60% of a $50,000 earned in 2020 isn't relevant if the same person retires in 2065 on a salary of $150,000.

Understanding Your KiwiSaver Calculator Results

• Your results will either be:

1. "KiwiSaver retirement savings runs out at age..."  which means, based on your current income, KiwiSaver contributions and what you expect to spend during your retirement will deplete your nest egg, or 
2. "Balance at end of retirement is $...." which means your KiwiSaver nest egg will outlive you, based on your planned expenses during retirement. 

• We have excluded NZ Superannuation payments. We believe the level of income they provide is designed to pay basic living expenses and not be used as a lifestyle allowance.
• Unless you want to retire at 65 and live week-to-week for the rest of your life having to rely on superannuation, having a sufficient KiwiSaver balance is a sure way to have a comfortable retirement.
• These factors drive the balance of your nest egg:

1. Your salary and contribution rate: A $50,000 salary and 6% contribution is better than a $60,000 salary and 3% contribution. The more you can contribute, the more you'll retire with.
2. How early you start contributing: Quite simply, the earlier, the better, as your investment's returns compound over time. For example, $1,000 at age 25 will be worth $7,000+ at an average return of 5%, so the more you can save and the earlier you do it, the higher your KiwiSaver balance.
3. What fund you invest in for the long-term: Low-growth 'conservative' or 'default' funds are not designed to perform as well as 'growth' or 'aggressive' funds in the medium to long-run. While no fund is outwardly 'wrong', the costs of being in a low-returning fund can be significant. In a simple example, a 25-year-old earning $50,000 a year who contributes 3% to their KiwiSaver fund will retire with $230,000 if in a conservative fund (assuming an average 2.50% p.a. after-tax return) or $440,000 if in a growth fund (assuming an average 5.50% p.a. after-tax return). The difference is so significant that being in the wrong fund can be a very costly mistake.
4. If you make a home or hardship withdrawal, or stop contributing altogether: Any decrease in your balance will wipe away years of future returns. For example, withdrawing $20,000 at age 35 will mean you forfeit over $100,000 in lost returns by the time you hit 65. We calculate this based on your KiwiSaver fund returning an average of 5.50% p.a. after tax and fees. If you stop contributing altogether, your balance would still grow (if fees exceed returns), but it's harder to get ahead.

Useful KiwiSaver Guides and Tips

To help you make an informed decision on whether you should join KiwiSaver, switch funds or schemes altogether, only MoneyHub gives you all the facts. We suggest the following guides:

• KiwiSaver Scheme Reviews - every scheme reviewed in detail to help you compare apples with apples
• What to Consider when Choosing a KiwiSaver Fund - know what to look for before jumping in
• General KiwiSaver Guide - if you need the basics of KiwiSaver explained, this guide has you covered 
• KiwiSaver First-Home Withdrawal - if you plan to cash in your KiwiSaver nest egg for a home, this guide has everything you need to know
• KiwiSaver HomeStart Grant Guide - don't miss out on free money from the government; this guide has you covered
• KiwiSaver Hardship - understanding when you can and can't withdraw is important to manage expectations

KiwiSaver Calculator Assumptions and Definitions

Current age

• Your current age

Age you plan to retire

• Our calculator assumes that you will no longer make any retirement saving contributions to KiwiSaver after you reach the retirement age. So, if you retire at 65 years of age, your last retirement contribution will be made at age 64.
• While in practice you will contribute every payday with KiwiSaver, our calculator assumes that you contribute once, annually, at the end of each year.
• The difference is minimal, and our calculator is more conservative as a result as it does not include any compounding gains made within one year.

Your annual income (pre-tax)

• Your total income, pre-tax, paid by your employer or your business. Do not include income from other sources, such as investment properties, shares or managed funds. 

Total KiwiSaver contribution (including your employer’s)

• Your employer contributes 3% to your KiwiSaver. You either contribute, 3%, 4% or 8% of your before-tax pay.
• For example, if you contribute 3%, the total KiwiSaver contribution is 6% (3% from your employer and 3% from you). 

Current KiwiSaver balance

• This is your current KiwiSaver balance as it appears today, or as recent as you know. 

Expected annual pay rise

• This is the percentage you expect your income to increase every year.
• As a baseline, throughout New Zealand, most salaries and wages go up between 2% and 4% per year.
• In 2018, Stats NZ reported hourly earnings increased 2.9 percent for wage and salary workers.

Percentage of current income you want during retirement

• This is the percentage of your pre-retirement household income you think you will need in retirement.
• For example, if you currently earn $60,000 per year and would like a retirement income of $30,000 (excluding government superannuation payments), then the percentage is 50%. If you earn $100,000 and want a retirement income of $75,000, then the percentage is 75%.
• This amount is based on your income earned during the year immediately before your retirement, and it will increase every year to your expected retirement age if you have inserted a percentage into the expected annual pay rise (above). 

Expected years of retirement income

• This is the total number of years you expect to use your retirement income.
• For example, if you plan to retire at 65 and live until you are 90, that is 25 years.

Specific Assumptions regarding investment returns, inflation and New Zealand government superannuation payments:

Expected rate of return before retirement 

• This is the annual rate of return you expect from your KiwiSaver performance, after-tax and after fees. For example, the 10-year, pre-tax performance of leading KiwiSaver Conservative and Growth funds is around 5% and 7% respectively, as of December 2018. For more details, see the KiwiSaver Calculator Assumptions and General Disclaimer section below.
• The actual rate of return on investments can vary widely over time, and there is a risk of your total investment losing value in a global financial crash. 

Expected rate of return during retirement

• This is the expected annual after-tax rate of return you expect from your KiwiSaver fund during retirement. This is likely to be a lower return than your expected rate of return before retirement because most New Zealanders switch to a conservative or cash fund option.
• The actual rate of return is largely dependent on the types of investments you select. Most KiwiSaver cash funds have paid an average of between 2.50% to 3.00% after-tax in the 10 years to December 2018. Term deposits, i.e. leaving money in a bank account, currently pay around 2.00% to 4.00% depending on the length of the term, whereas on-call bank accounts pay between 0.00% to 0.25%.
• All of the information above is historical or hypothetical and no guarantee of future returns. The actual rate of return on investments can vary widely over time, and there is a risk of your total investment losing value in a global financial crash.

​
Expected rate of inflation

• This is what you expect the average rate of inflation to be in the long-term. In New Zealand, Stats NZ publishes the Consumer Price Index (CPI). Using a calculator from the Reserve Bank, between 1990 and 2018 the CPI had a long-term compounded average of 2.1% annually. In 2008 and 2011, the Reserve Bank’s data shows that inflation was around 5% per year.
• For 2018, the CPI was 1.9% annually as reported by Stats NZ.

NZ Superannuation payment

• We have included the after-tax 2018/2019 NZ Superannuation rates for a married, civil union or de facto couple where both partners qualify (tax code is M). 

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General Disclaimer:

1. ​Where the KiwiSaver Calculator requires you to enter data, if you have entered any information incorrectly, the projections produced may not be appropriate.
2. The KiwiSaver Calculator does not reflect actual returns or predict future returns (which are subject to investment and other risks, including possible loss of income and principal invested).
3. No amount of return is promised or guaranteed.  Returns can be positive or negative, and will vary over different periods depending on the investment performance of your chosen fund(s).
4. The KiwiSaver calculator further assumes that:

• You do not take any savings suspensions
• No amounts are withdrawn for a first home purchase or any other withdrawal type (i.e. hardship)
• All government benefits remain unchanged until your retirement
• All contributions are made at the beginning of each year
• Your funds remain in your KiwiSaver account, but your remaining balance is reduced each week by the stated weekly amount until it reaches zero.
• You continue to earn investment returns based on your predicted return rate as your balance reduces to zero.
• Due to the complexities of tax and individual PIR, the Expected rate of return during retirement is presented without tax considerations. You can adjust the percentage return to suit your PIR and fund choice. To understand how PIR affects returns, we present an expected rate of return table from the Westpac KiwiSaver scheme below. 

	10.5%	17.5%	28%
Low-risk investment (i.e. a Cash or Conservative Fund)	2.90% p.a.	2.80% p.a.	2.50% p.a.
​​Medium-risk investment (i.e. a Default or Balanced Fund)	3.90% p.a.	3.70% p.a.	3.40% p.a.
​​High-risk investment (i.e. a Growth or Equities Fund)	4.40% p.a.	4.20% p.a.	​3.90% p.a.

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Related Guides

• ​KiwiSaver Hardship - ​if you're a KiwiSaver member and struggling with your finances, our guide explains everything you need to do to ask for an early redemption
• Contributions holiday - if you're wanting to take a break from contributing, our guide explains your options
• KiwiSaver HomeStart Guide - get a grant of up to $20,000 and access to your KiwiSaver fund for your first house or apartment deposit
• KiwiSaver First Home Withdrawal Guide - if you want to use your KiwiSaver balance for a house deposit, our guide explains everything you need to know
• Your KiwiSaver contributions - You can choose how much to contribute. Find out what happens when you go on leave, receive a benefit or entitlement, or have a tax debt
• Your employer's KiwiSaver contributions - If you're a KiwiSaver member making contributions from your pay, your employer will also contribute to your KiwiSaver savings
• Government KiwiSaver contributions - To help you save, the Government will make an annual contribution towards your KiwiSaver account as long as you meet certain conditions.​
• Voluntary contributions - make voluntary contributions (or lump sum payments) at any time, either directly to your KiwiSaver provider or through Inland Revenue​
• ​KiwiSaver and tax - KiwiSaver contributions are deducted from your before-tax pay, and our guide explains everything you need to know.
• How to check your KiwiSaver contributions - Keeping track of your KiwiSaver contributions is easy with 'My KiwiSaver'
• KiwiSaver Withdrawal - If you joined KiwiSaver on or after 1 July 2019, you can withdraw your savings when you qualify for NZ Super (currently 65)
• KiwiSaver Providers - ​You can choose which scheme to join, even if you're provisionally allocated to an employer-chosen/default scheme
• Opting out of KiwiSaver - If you're a new employee who's been automatically enrolled, you can choose to opt out of KiwiSaver
• KiwiSaver Fund Selection Guide - ​10 Must-Know Facts Revealing Everything You Need To Know About KiwiSaver
• Calculating your PIR - our guide covers everything you need to know to making sure you're paying the correct tax on investment fund earnings.