Most Kiwis could retire comfortably by contributing 5% to KiwiSaver—but experts say that’s not the whole story.
A new report from the New Zealand Society of Actuaries highlights a key insight: while 5% may be enough for many, your ideal contribution rate depends on your income, lifestyle, and retirement goals. The “default” setting might be too low—or even more than you need.
The report introduces the concept of income smoothing—balancing your spending power before and after age 65. For lower-income earners, NZ Super covers a larger share of retirement costs. But if you’re a higher earner, you’ll likely need to save more to maintain your lifestyle. The actuaries recommend aiming for 80–100% of your after-tax income in retirement, lasting to at least age 90.
🔑 Key takeaway: Don’t assume the default KiwiSaver rate will get you where you want to be. Your personal circumstances matter.
If you’d like to review your KiwiSaver strategy and make sure you’re on track for the retirement lifestyle you want, feel free to reach out for a personal review.
Read the full article here: ‘You can’t expect a single KiwiSaver contribution rate to work for everyone’ – interest.co.nz