Assumptions

Results shown on ThatDay assume the following (actual rates and circumstances will likely be different): 

• Inflation is 2% per annum throughout both the savings and retirement periods.
• You start receiving NZ Superannuation payments when you’re 65 years old, and the amount you receive will go up by 2% each year.
• Your savings contributions will go up by 2% each year during the savings period.
• Your spending will go up by 2% each year until you’re 75 years old, and then it will gradually go down as follows:
  • From 76 years old to 80 years old : 1.5% each year
  • From 81 years old to 85 years old : 1% each year
  • From 86 years old to 90 years old : 0.5% each year
• The rate of return (before inflation and after tax and fees) on your savings and financial investments (e.g. KiwiSaver, shares, bonds, investment property) depends on your current age (in the case of a couple, the rate of return is based on the current age of person who will retire first) as follows:
  • From 16 years old to 35 years old : 7% each year
  • From 36 years old to 45 years old : 6% each year
  • From 46 years old to 55 years old : 5% each year
  • From 56 years old to 64 years old : 4% each year
  • From 65 years old to 90 years old : 3.5% each year
• When you start getting Superannuation payments, you won’t be getting any payments from ACC.

ThatDay provides general educational estimates only. Results are based on the information and assumptions supplied and are not personalised financial, tax or investment advice. Please read our Financial Disclaimer and Independence Statement.