Check out examples of how KiwiSaver retirement projections can look in these short case studies. For more information on KiwiSaver statements, visit fma.govt.nz/looksee
Shannon (23) is a primary school teacher in Auckland. She earns $52,000 a year and has been contributing 3% of her salary to KiwiSaver for the past two years. Her statement shows that she currently has $6,500 in her KiwiSaver Growth fund.
The projection estimates that her KiwiSaver fund will be worth $309,784 by the time she’s 65. Combined with NZ Super, that will give Shannon about $743 a week in retirement – a bit less than she earns now (assuming she lives to 90 years).
Lucas (32) is an electrician, earning $67,000 a year. He’s been contributing 3% of his wages to a Default Conservative KiwiSaver fund for the past 13 years. His statement shows he has $25,000 in his KiwiSaver fund.
The projection estimates that his KiwiSaver fund will be worth almost $200,000 when he’s 65 ($195,308). Including NZ Super, that would amount to $584 a week (assuming Lucas lives to 90).
If Lucas moved his money to a Growth fund, he’d have almost $100,000 more when he retired - $283,915, or $717 a week.
Fiona and Dave
Dave (46) earns $160,000 as an HR manager, while his partner Fiona (45) earns $95,000 working part-time as a GP.
Their KiwiSaver statements show that Dave has saved $72,000 and Fiona $32,000. Fiona took time out of the workforce to raise their children so she has quite a lot less than Dave, even though they both joined KiwiSaver at the same time and are both in Growth funds.
Combined, Fiona and Dave will have around $500,000 at 65 ($543,362) – around $1212 a week including NZ Super.
If Fiona and Dave both contributed 4% of their salaries to KiwiSaver, instead of their current 3%, they’d have more than $600,000 when they retire ($612,809).
For the purposes of illustration, we assumed NZ Super figures for singles and couples as of June 2020. NZ Super rates rose by 3.1% in April 2021, which will increase the projections given here. Salaries are estimated based on available industry figures.