When it comes to retirement, the size of your KiwiSaver balance can have a big impact on the lifestyle you’ll be able to afford right down to what ends up in your supermarket trolley each week.
Most people know that how much you contribute to your KiwiSaver matters. You can choose to contribute 3%, 4%, 6%, 8%, or 10% of your gross salary or wages. But another key factor, one that’s often overlooked, is which provider you’re with and what type of fund you’re invested in.
A Tale of Two Funds
Let’s say you’re 40 years old, earning $80,000 per year, and contributing 3% into KiwiSaver. You already have $50,000 saved. Here’s how things could look by age 65, depending on your fund type:
- Aggressive Growth Fund:
Your balance could grow to $486,717, giving you around $436 per week in retirement (on top of NZ Super). That’s enough to enjoy some small luxuries and maintain a comfortable lifestyle. - Moderate Fund:
Your balance might only reach $240,538, providing approximately $215 per week. That’s a much tighter budget, potentially limiting your lifestyle choices.
This difference comes down to how your money is invested and how much potential growth you could be missing out on over time.
Why It Pays to Get Advice
The fund you’re in today may not be the best fit for your goals, risk tolerance, or stage of life. That’s where tailored advice can make a real difference. As a registered KiwiSaver adviser, I help Kiwis understand their options and make informed choices about their future.
Let’s sit down and look at how your current fund is tracking and whether you’re on course to afford the retirement lifestyle you’re aiming for.
www.dianamcintyre.co.nz
021888090
