# See how you could grow your KiwiSaver

Making the right decisions now about your KiwiSaver fund or contribution rate, could have a big impact on the amount you can save for retirement.

# Ways to use the calculator

## Planning for retirement

See how your KiwiSaver balance might grow between now and when you plan to retire, and the income your KiwiSaver account could give you in retirement.

## Buying your first home

If you’re planning on buying your first home, see how your KiwiSaver balance might grow between now and when you’re ready to make a first home withdrawal.

## Making the most of KiwiSaver

See what impact changing your fund, or contribution rate, could have on what savings you could have at retirement, or to put towards buying your first home.

# Calculate your savings

Use our calculator to see how you could grow your KiwiSaver balance.

#### How this calculator works

- The results obtained through the calculator are not guaranteed to occur, and the calculator is simply a tool to help you understand how choices you make may affect the value of your KiwiSaver savings and retirement income.
- The financial results are for illustration only and are based on several assumptions. The results are therefore unlikely to reflect your actual balance or your actual retirement income. For example, actual investment returns may be different, and are likely to move up and down due to investment and other risks. Returns may be negative over some time periods.
- The investment returns used to calculate the financial results in this calculator reflect our estimates of how investment markets may perform over the long term. These estimates will change from time to time, which means the financial results that this calculator would calculate for you will also change from time to time. Other estimates or assumptions used in this calculator, like the rate of inflation, may also change from time to time. We recommend you review your KiwiSaver account and obtain updated financial results on an annual basis.
- This calculator is not intended to convey personalised advice, and we recommend that you seek financial advice before making any decisions on investing in the BNZ KiwiSaver Scheme.
- To the extent permitted by law, neither BNZ nor any of its related parties accept any responsibility or liability arising from the use of this calculator.
- The balance and income calculations of this calculator are based on the following assumptions:

1) You are aged between 18 and 65 years of age. Your retirement age is 65, and this is the age at which you stop working. Employee and employer contributions, and Government contributions, cease at age 65, and you become fully eligible to withdraw your KiwiSaver savings upon reaching age 65.

2) You can include KiwiSaver contributions from your pay in these calculations. If you do, the following assumptions apply:

- You input your annual income and chosen KiwiSaver employee contribution rate (0% (for self-employed or not currently working), 3%, 4%, 6%, 8% or 10% of your annual income, before tax, as selected) into the calculator.
- The value of your KiwiSaver employee contributions is calculated by multiplying your annual income by your chosen KiwiSaver employee contribution rate.
- Your employer makes KiwiSaver employer contributions at a rate of 3% of the annual income you state (before tax). We calculate a deduction for Employer’s Superannuation Contribution Tax (ESCT) using the rate applicable to the annual income you state. We assume the income bands for ESCT will adjust each year in line with salary inflation. This ESCT Rate is applied to all employer contributions in this projection. See ird.govt.nz for more information on ESCT Rates.
- To account for salary inflation, the amount of the employee and employer contributions made to your account increases by 3.5% each year.
- You contribute each year until retirement, without any savings suspension or other non-contributing periods.

3) You can include voluntary contributions in these calculations. If you do, the following assumptions apply:

- Voluntary contributions occur each year until retirement. You can’t make one-off voluntary contributions, including transfers from other superannuation schemes.
- You choose the frequency and amount of voluntary contributions you make each year.
- The amount of voluntary contributions to your account increases by 3.5% each year.

4) You are eligible for the Government contribution. The Government contributions paid to your account each year is calculated by applying the Government contribution rules to the total employee and voluntary contributions made to your account in that year. The Government contribution, including eligibility criteria and contribution rate, is stated as at 28 February 2020 and is assumed to continue unchanged until you reach age 65.

5) You make no withdrawals prior to retirement.

6) Your account earns investment returns each year until age 65 depending on the fund you choose, as set out below. These returns are after all fees and taxes.

FUND |
INVESTMENT RETURN (PER ANNUM) |
---|---|

Cash Fund |
1.5% |

First Home Buyer Fund |
2.5% |

Conservative Fund |
2.5% |

Moderate Fund |
3.5% |

Balanced Fund |
3.5% |

Growth Fund |
4.5% |

The investment return for each of the BNZ KiwiSaver Scheme Funds has been determined in line with the guidance on fund types as set out in Schedule 7A of the Financial Markets Conduct Amendment Regulations 2019 dated 13 May 2019. Some funds, such as our First Home Buyer Fund and Conservative Fund, and our Moderate Fund and Balanced Fund, currently have the same investment return. This is because Schedule 7A advises assumed rates of return based on the proportion of growth assets (such as shares and property) they hold, meaning some of our funds fall into the same categories. Actual returns each year, for each fund, will likely be different to these assumed returns. Please note that funds with a higher exposure to growth assets are expected to have higher average returns over the long term. However, they are also likely to have returns that fluctuate year to year by a greater amount.

7) Once you reach age 65 we assume you review your fund choice and make the decisions set out in the below table.

YOUR FUND CHOICE |
ASSUMED FUND CHOICE IN RETIREMENT |
---|---|

Cash Fund |
Cash Fund |

First Home Buyer Fund |
First Home Buyer Fund |

Conservative Fund |
Conservative Fund |

Moderate Fund |
Conservative Fund |

Balanced Fund |
Moderate Fund |

Growth Fund |
Balanced Fund |

8) Cash flows (such as contributions into KiwiSaver) are annualised and occur halfway through the year.

9) The income in retirement is calculated on the following basis:

- a withdrawal of the annual income amount is made halfway through each year for 25 years (i.e. from age 65 to age 90 – your balance is assumed to reach $0 at age 90);
- the income amount is increased by 2% each year to offset the impact of inflation (so stays the same in real terms);
- your account earns investment returns each year (after fees and taxes using the current applicable Prescribed Investor Rate) based on an assumed fund choice in retirement as stated above;
- all contributions cease on you reaching retirement age.

10) If you select “Include NZ Super”, the retirement income will include the weekly rate after tax, assuming an 'M' tax code, rounded to the nearest dollar. This amount is stated as at 28 February 2020. The calculator assumes you have no other taxable income other than NZ Super.

11 ) If you specify a current KiwiSaver balance, it is added to your KiwiSaver balance on day 1.

12) An assumed rate of inflation of 2% per annum is used to calculate your KiwiSaver balance in today’s money.

13) The NZ Super amount shown is the rate for a couple where both qualify.

14) You can select to use your KiwiSaver to buy your first home. When you do, the calculator will display an estimated deposit that could be available in the time frame you selected. If you selected a time frame that included a date range, the estimated deposit displayed will be for the mid-point year of the range selected.

G. References to third party websites are included for convenience only. BNZ (including any of its related parties) do not accept any responsibility for the availability and content of such websites.

## BNZ KiwiSaver Scheme help and support

*If you need some help call 0800 269 5494*