Question 1

What return rates do you assume for each fund type?

Accepted Answer

We use 10-year NZ averages (before fees, before tax): Defensive 3%, Conservative 4%, Balanced 6%, Growth 8%, Aggressive 9%. These are indicative — actual returns vary year to year and by provider. Sources: Sorted, interest.co.nz, and publicly available NZ fund performance data.

Question 2

How are fees calculated?

Accepted Answer

Fees are deducted annually as a percentage of your fund balance. The default 0.5% is typical for a NZ KiwiSaver fund. Check your provider's Product Disclosure Statement (PDS) for your actual fee rate. Over 35 years, even a 0.5% difference in fees can cost tens of thousands of dollars.

Question 3

Are projections adjusted for inflation?

Accepted Answer

No. All figures are nominal — they don't account for inflation. A balance of $500,000 in 35 years will have less purchasing power than $500,000 today. As a rough guide, at 2-3% annual inflation, values are worth roughly half in 25 years.

Question 4

How is the employer contribution calculated?

Accepted Answer

Your employer contributes at the matching rate (currently 3%, rising to 3.5% from April 2026 and 4% from April 2028). ESCT (Employer Superannuation Contribution Tax) is deducted before the contribution enters your fund. The ESCT rate depends on your salary — higher earners pay more ESCT, which reduces the net employer contribution.

Question 5

How is the government contribution calculated?

Accepted Answer

Since 1 July 2025 (Budget 2025), the government contributes 25 cents for every $1 you contribute, up to $260.72 per year. You need to contribute at least $1,042.86 per year to receive the full amount. Members earning over $180,000 are not eligible. The contribution year runs 1 July to 30 June.

Question 6

What changed with the government contribution in 2025?

Accepted Answer

Budget 2025 halved the government contribution from 50c per $1 (max $521.43/year) to 25c per $1 (max $260.72/year), effective 1 July 2025. A new income threshold of $180,000 was introduced — members earning above this are no longer eligible. The eligible age was extended from 18 to 16.

Question 7

What are the upcoming KiwiSaver rate changes?

Accepted Answer

From 1 April 2026, the default employee and employer contribution rates increase from 3% to 3.5%. From 1 April 2028, they increase again to 4%. If you're already contributing above the new minimum, your rate won't change.

Question 8

What happened to the First Home Grant?

Accepted Answer

The NZ Government discontinued the First Home Grant (HomeStart Grant) on 22 May 2024. It is no longer available. However, KiwiSaver first home withdrawal remains available for first home buyers with 3+ years of membership ($1,000 must remain in your account). The First Home Loan, which allows a 5% deposit via Kainga Ora, is also still available.

Question 9

Does this projection account for the upcoming rate changes?

Accepted Answer

The projection uses your selected contribution rate for the entire period. The legislated increases (3% to 3.5% in April 2026, to 4% in April 2028) are not automatically applied. If you're currently at 3%, try running projections at 3.5% and 4% to see the impact of the upcoming changes.

Question 10

Can I trust these numbers?

Accepted Answer

These are estimates based on historical averages and assumptions. Actual returns, fees, tax treatment, and your personal circumstances will differ. This tool is for educational purposes only and is not financial advice. For personalised guidance, consider talking to a financial adviser.

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