Ever wondered what could your retirement at 65 look like off the back of your KiwiSaver?
For the first time, KiwiSaver statements will estimate your balance at retirement and what that looks like as a weekly income, assuming you live to 90.
Financial Markets Authority investor capability manager Gillian Boyes said most people found it really hard to imagine what their KiwiSaver contributions will add up to.
She said Kiwis have been able to see their predicted balances for a long time through various tools, but people didn’t use them.
“So, we thought if we put it straight on the statement, they can see their future right in front of them.
“Then, they can make some really good decisions whether that’s going to be enough,” Ms Boyes said.
She said while superannuation paid $424 per single household every week, Massey University research found most people spent about $600 to $1200 a week.
“It depends where you live, whether it’s provincial or in the city, and it also depends if you want a no-frills lifestyle or whether you want to have some choices.”
Ms Boyes encouraged people who weren’t happy with the amount shown on their statement to look at what fund they were on.
“A lot of people are in a conservative or balanced fund. That won’t grow your money as much in the longer term as the growth fund will.
“Just bear in mind that if you’re in a growth fund, you’ll see quite a lot of volatility in your balance.”
She also encouraged people to increase their weekly contributions if they could as many people stuck to the minimum at three per cent a week.
“If you can afford to contribute more, that’s going to make the most dramatic difference.”
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