KiwiSaver retirement projections
All KiwiSavers will soon receive their annual member & tax statements from their KiwiSaver provider. What’s different this year is that it’s the first time that ALL KiwiSaver members will receive an estimated balance at age 65, along with an estimate of how much this might provide them as a weekly income from age 65 to age 90.
These projections can be really helpful for deciding if you are likely to have enough income in retirement to provide the lifestyle you want. For many KiwiSavers it will be a wakeup call that they need to be contributing more to KiwiSaver. Please get in touch if you would like help with increasing your contributions.
Although providers like Booster have provided these projections for many years, there is likely to be more interest in these projections this year, particularly if this year’s numbers are lower than last year’s. There are two key reasons for this:
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All providers are required to use the same set of return assumptions for the 1st time. These may result in lower projected returns than have been provided in past years.
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The market falls in March due to the COVID-19 pandemic resulted in a lower ‘starting point’ for the forecasts. As you will have noted, markets have already rebounded significantly since then.
More details on these changes and what they mean for you can be found on the Financial Markets Authority website.
