The earlier you start the better off you will be

Because this allows you to take more advantage of compounding investment returns and generous Government incentives.

These simulated results show the positive effect of compounding returns for three investors:

  • Investor A starts saving at age 20, with a starting salary of $30,000,
  • Investor B starts saving at age 30, with a starting salary of $40,000, and
  • Investor C starts saving at age 40, with a starting salary of $54,000.

Each investor remains employed at all times until their retirement age of 65. No withdrawals are made. Their salaries grow by 3% per annum and they earn a 6% per annum real return after tax and fees , inflation is assumed to average 2% per annum. Both investors and their employers each contribute 3% of the investor’s Before Tax Pay into the investor’s KiwiSaver scheme account. The employers’ contributions are net of employer’s superannuation contribution tax at current rates.

Disclaimer - The illustrations above do not reflect the prospective performance of the Scheme or of any fund. Returns to members of the scheme are subject to investment and other risks (including potential losses). No returns are guaranteed or assured, and returns can at times be negative, particularly given the length of the investment period shown in the illustration. Past performance is not necessarily an indicator of future performance and returns over different periods may differ.