Are you looking forward to that day when you finish work for the last time? KiwiSaver can help you fund the lifestyle you’re working towards. But if you want to ensure that you’ve saved the money you need, it’s important not to sit back and wait until retirement.
Start today. First, understand what your savings will add up to tomorrow. Then, set some goals – and take action to achieve them. Read on for some helpful tips…
Saving more today to spend tomorrow
It’s a good idea to set aside as much money as possible to support your retirement. Any contribution to your KiwiSaver account is better than none. If you haven’t already, why not sign up for KiwiSaver today?
How much money will you have when you retire?
If you keep saving money into KiwiSaver at your current rate, how much you will you have saved when you retire? One way to find out is with an online calculator.
Online calculators use a variety of assumptions (inflation, pay increases, fund returns) to predict what your KiwiSaver fund will be worth when you retire. These assumptions differ by calculator, so it’s a good idea to try a few and see where the balance lies.
Here are just three (of the many) valid examples you can check out:
- Sorted Calculator – an independent calculator from the Commission of Financial Capability.
- Westpac Calculator – the assumptions used in this calculator are clearly set out below the input fields.
- Kiwi Wealth Calculator – this calculator includes some assumptions around your retirement goals, so you can see if you are on track to achieve them.
Would you prefer a more accurate overview of your retirement position? Then we can help. As KiwiSaver experts, we will be able to help you to assess your financial position both now and at retirement. This will be specific to your current and predicted finances.
Will your KiwiSaver funds meet your retirement needs?
The success of KiwiSaver comes from its ability to fund your post-work years and the lifestyle you’re looking forward to. Understanding any gaps between your savings and your retirement costs is important.
Take some time to think about the money you require to achieve a comfortable retirement. If you need some pointers, this Sorted blog on Saving for Retirement can help you calculate how much money you might need. It’s important to factor in both the lifestyle you want and your predicted life expectancy – i.e. the number of years you’re going to need to fund it.
Once you’ve run some realistic projections, there may be a number of steps you can take to improve your position, including increasing your KiwiSaver contributions.
We are here to help you design the most effective strategy, and understand how to get on track for your long-term goals.
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