Calculation Assumptions - BetterSaver
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Calculation Assumptions

Calculator Information

The KiwiSaver calculator takes into account your goal for how you will use your KiwiSaver (either for a deposit to buy a first home or for retirement). We take into account your income before tax, your timeframe (if your goal is to buy a first home), the month and year you were born, your current KiwiSaver balance, your fund type, your contributions, your employer's contributions and any voluntary contributions.
The amount calculated is only an estimate of what your total KiwiSaver savings could look like based on your goal timeline and personal information provided. It does not take into account other specific factors about your requirements.

Calculator Assumptions

The calculator relies upon a number of assumptions. The Government has set the default rates for a number of assumptions relating to KiwiSaver calculations and wherever possible we have used these default rates.

KiwiSaver returns

We use assumed KiwiSaver returns based on the type of fund you select. If you select ‘Not sure/ can’t find out’ we assume you are in a balanced fund because this is the default KiwiSaver fund option. We assume returns after fees and tax based on FMA's guidance of Conservative 2.5%, Balanced 3.5% and Growth 4.5%.

Wage and salary inflation

Wage and salary increases are assumed to be 3.5% per year which is the default assumption set for KiwiSaver projections see FMA's guidance.

Your KiwiSaver Contributions

Your personal KiwiSaver contributions are assumed to be 3% of salary.

Employer KiwiSaver contributions

Employer KiwiSaver contributions are assumed to be 3% and employer contribution tax at current rates is deducted from this contribution.

Government KiwiSaver contributions

Government KiwiSaver contributions are also applied at the rate of 50 cents for each dollar you contribute capped at $521.43 per year (which is the current basis for Government KiwiSaver contributions). We assume this is paid into your KiwiSaver account on 1 July every year until you reach age 65 (for retirement) or reach your goal time frame (for buying a first home).

Personal Information

The information you provide is only used to generate the results from this calculator. It will not be used to identify you, will not be linked to any other information we have about you, and will not be used for any other purpose.

Any information you provide, and the results from this calculator, will not be retained after you leave the website.

Calculator Disclaimer

The results from this calculator should be used as an indication only. The results do not represent any form of wealth planning or financial advice. Information such as return rates and inflation figures used in the assumptions are subject to change. We do not accept responsibility for any errors in the calculations, or for any loss suffered in relying on the results from this calculator.