Standard Assumptions
- These figures only relate to KiwiSaver and do not take into account any other retirement savings or income.
- These figures are estimates. They are calculated based on your current balance, contribution rate, and fund choice. An assumed rate of return of 4.5% for the Growth Fund.
- The calculations also use a number of assumptions including an assumed 4.5% annual rate of return for a growth fund and others about future events such as inflation.
Fee assumptions
This calculator compares average industry fees for KiwiSaver growth funds with JUNO KiwiSaver Schemes fees;
- The industry average for KiwiSaver growth funds management fees is 1.16% p.a. (the total fees you would have been charged on the average KiwiSaver balance at 31 March 2019, according to Sorted FundFinder) and Membership fees of average $31.80 p.a.; Based on average annual growth fund fee Sorted Fund Finder as at 31 March 2019.
- JUNO KiwiSaver Scheme fees assume your balance is at year-end and you pay the applicable JUNO fees, each month;
Other calculator assumptions
- No withdrawals;
- Annual return (Growth fund) 4.5% p.a. net of tax at 28% PIR
- Annual return (Balanced fund) 3.5% p.a. net of tax at 28% PIR
- Annual return (Conservative fund) 2.5% p.a. net of tax at 28% PIR
- Below age 18 we assume only monthly member contributions (until age 18), and no employer or government contributions;
- From age 18 we assume a $35,000 salary (or your inputted salary) increasing 3.5% annually; 3% member and employer contributions (less applicable Employer superannuation contribution tax) and a $521.43 annual Government contribution;
Inflation measures the expected change over time, of the price of goods and services you want to buy.
A 2% inflation rate, like we use in this calculator, means something costing $100 today is expected to cost $102 next year, just over $104 the following year and so on.
It matters because if the cost of what you want to buy grows faster than your investment, the ‘purchasing power’ of your investment is shrinking. You want the ‘purchasing power’ of your money to at least keep pace with, and ideally beat, the rate of inflation.
Will your retirement savings be enough?
A number of choices affect the size of your retirement savings. These include:
- Your choice of fund.
- Your contribution rate.
- How long you contribute for.
These are things you can change, so you may wish to consider if your current choices are right for you and your stage of life. For help to work out what is right for you, contact us at
0800 JUNO KS, visit
www.sorted.org.nz or seek advice from a financial adviser.