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 based on the selected fund.
- 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
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.
Assumptions
- JUNO KiwiSaver Scheme fees assume your balance is at year-end and you pay the applicable JUNO fees, each month;
- No withdrawals;
- Salary/Self-employed contributions increases 3.5% annually;
- 3% employer contributions (less applicable Employer superannuation contribution tax);
- $521.43 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.