Insights
Savings Calculator Assumptions
In greater detail.
Your pay will increase by 3.5% each year and your contributions will increase in line with your pay (including voluntary contributions you may make in addition to contributions automatically deducted from your pay). For example, a $200 per month contribution today will be a $207 per month contribution next year, a $214 per month contribution the year after and so on.
If you make regular voluntary contributions (for example a regular direct debit) you will continue making these each year until you reach 65.
No amounts are withdrawn for home purchase or financial hardship.
You take no savings suspensions – where you stop contributions for a period of time.
The Government contribution you earned in the past year (the current statement period) will continue to be paid each year until you reach age 65. For example, if you qualified for the full Government contribution of $521, the estimate will include this for every year. If you only qualified for a portion of the contribution, that same portion will be applied every year.
You stay in the same fund or fund mix until you are 65.
The rate of return is based on your fund type:
Conservative Fund: 2.5%
Balanced Fund: 3.5%
Growth Fund: 4.5%
The rates of return are:
After tax of 28%. This is the highest and most common
After fees. The fees used are an average for your fund type and don’t reflect the actual fees you paid
The inflation assumption is currently 2% per annum.
Alex is an environmental scientist with a passion for sustainability and responsible investing. Alex brings experience in the field of climate science and financial services, having worked as a consultant first at Tonkin & Taylor and PwC, and then working in house as an ESG expert at BNZ, ASB and Kernel Wealth. Alex is committed to helping kiwis grow their wealth in a responsible manner that contributes to addressing some of our biggest problems such as climate change.
