What we have assumed when calculating your KiwiSaver savings


Important Information


This calculator and the results it produces are intended to be of a general nature only and do not constitute financial advice. We recommend that you seek appropriate professional or financial advice before acting on any of the results provided by this calculator.

While care has been taken to ensure the information supplied is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility for any loss or damage arising from the use of this calculator.

Results do not reflect actual returns and are not predictions of future returns (which are subject to investment and other risks, including loss of income and principal invested). Returns are not guaranteed by any person and fees are subject to change.

Investing in the AMP KiwiSaver Scheme is subject to risk, which includes the potential for you to lose income and any amounts invested. When using this calculator, you should have regard to your particular objectives, needs and financial situation.


How the Calculator works


The AMP KiwiSaver Scheme Retirement calculator can give you an idea of what level of annual income your AMP KiwiSaver Scheme balance and NZ Super could provide you in your retirement (after fees and taxes). The calculator assumes you will retire from age 65 through to age 90.

The calculator uses your inputs and the ‘Assumptions’ set out in the link below.
NZ Super is included in your annual estimated income by default.  The calculator has been designed for New Zealand conditions only. This projected annual income is an estimate only.


Assumptions


The AMP KiwiSaver Scheme retirement calculator can give you an idea of what level of annual income your AMP KiwiSaver Scheme balance and NZ Super could provide you in your retirement (after fees and taxes). This projected annual income is an estimate only.

The calculator produces this estimate using the information you input (your age, salary and current KiwiSaver balance), and it relies on some important assumptions. Some of these key assumptions include the following:
• that you will retire from age 65 through to age 90,
• that you and your employer both contribute 3% of your income,
• that you will receive NZ Super payments,
• that you invest in a balanced fund, and that fund has an assumed rate of returns, and
• that there is a set rate of salary/wage inflation and purchasing power inflation.

These core assumptions used to calculate your annual retirement income projections are set by the Government.

It’s important to know these figures are an estimate only and aren’t guaranteed by us or the Government. They are information only and do not constitute financial advice. You can find out more about these assumptions on the Financial Markets Authority website at https://www.fma.govt.nz/investors/resources/kiwisaver-projections.


The assumptions the calculator uses are set out below in more detail.

Projected results

The projected annual retirement income has been adjusted for future price inflation, so it is based on the purchasing power of today. Income from NZ Super is included in the projected annual income.

Retirement Age

The calculator assumes that your retirement age, and the age that you begin to withdraw your balance, is age 65.

Retirement savings run-out age

The calculator assumes you leave your money invested and will make regular withdrawals from age 65 until age 90, until your balance reaches zero.

NZ Super

NZ Super is included by default in your annual projected income. The NZ Super amount shown for a single person is currently $424 per week (assuming you are single and living alone, after tax).
The calculator displays your estimated retirement income after tax. The calculator assumes the ‘M’ tax code is the correct tax code for you and that you have no taxable income other than NZ Super.

Member and employer contributions

Member and employer contributions are calculated based upon the annual income you enter into the calculator and the KiwiSaver contribution rates of 3% by both you and your employer.
All member, employer, voluntary and one-off contributions are projected forward into the future with an assumed level of wage/salary growth of 3.5% per year, with contributions increasing in line with pay.

Member contribution rate

We have assumed a 3% member contribution rate as this is the default rate which an employer will use for your member contribution rate if you don’t make a selection.
The calculator assumes that you do not take any savings suspensions (where you stop contributions for a period of time).

Employer contribution rate

We have assumed your employer contributes 3% as the default rate. If you are a KiwiSaver member making contributions from your pay, your employer is required to contribute at least 3% of your salary or wages (before tax).

Employer’s superannuation contribution tax (ESCT)

The calculator applies employer's superannuation contribution tax (ESCT) on employer contributions until the employer contributions stop when you’re 65. ESCT is calculated using the following table:

Annual salary + gross employer contributions .... ESCT rate
$0 – $16,800 .... 10.50%
$16,801 - $57,600 .... 17.50%
$57,601 - $84,000 .... 30%
$84,001 + .... 33%

Withdrawals

The calculator assumes that you do not make any withdrawals before you reach 65 (for example, for a first home withdrawal or other early withdrawals for serious illness, significant financial hardship, or if you move overseas).
It also assumes that you do not withdraw your savings as a lump sum when you reach age 65. Instead, it assumes that you will make regular withdrawals until from age 65 until age 90, until your balance reaches zero.

Government contribution

The calculator assumes that you will receive Government contributions of 50c for each dollar you contribute per year, up to a maximum of $521.43 every year.
The calculator assumes you are eligible for the Government contribution between the ages of 18 and 65, and that Government contributions remain unchanged and continue until you reach age 65.
The Government contribution amount is not adjusted for inflation.

Rates of return

The calculator assumes that you are invested in a balanced fund and stay in the same fund until you reach age 65. The government assumed rate of return to age 65 (after fees and tax) for a balanced fund is 3.5%.
The balanced funds AMP offers are: AMP Balanced Fund, AMP Moderate Balanced Fund, AMP Moderate Fund, AMP Global Multi Asset Fund, AMP Income Generator Fund, ASB Balanced Fund, ASB Moderate Fund, Mercer Balanced Fund, Nikko AM Balanced Fund.
The government sets assumed rates of return for the purposes of KiwiSaver balance projections. You can find out more about these rates of return on the Financial Markets Authority website at
https://www.fma.govt.nz/investors/resources/kiwisaver-projections.
You should note that the government assumed rates of return are after tax of 28%, which is the highest (and most common) tax rate for KiwiSaver members across all KiwiSaver providers. Your tax rate might be lower. The government assumed rates of return as also after fees. The fees used are an industry-average for your investment option and do not reflect the actual fees you will pay.
After age 65, the assumed rate of return is 2.5% after fees and tax, regardless of the type of fund you choose to invest in.

Inflation

The calculator assumes a 2% per year rate of general inflation (the long term expected rate of inflation) to show the ‘real buying power’ of your savings in the future.

Salary Inflation

The calculator assumes a 3.5% per year rate of wage and salary inflation (in other words, this is how much your wages are assumed to increase each year). It also assumes that your contributions will increase in line with your wage/salary.

Rounding

The yearly income is not rounded.