RETIREMENT INVESTMENTS

Funding my retirement

If you’re in retirement or about to retire, have you got enough to enjoy the lifestyle you want? Are your funds structured to take advantage of long term returns and reduce investment risk?  You can use this tool to help you on both fronts.

Retirement Savings Calculator

About this calculator

About this calculator

This calculator provides a guide on how much money you will need to fund your retirement from age 65 (or later if you are currently retired). Based on the information you provide, the calculator also provides guidance on how to structure your retirement funds to take advantage of long term returns while also mitigating the risk of short term volatility on funds you will require over the short to medium term. More details on this approach (which we term the “Waterfall”) can be found here.)
 
The lifestyle variables and spend estimates for this tool have been sourced from the Massey University report: Retirement Expenditure Guidelines (click here to download a copy of this report if you would like more detailed information)
 

Assumptions

The calculator assumes the following:
  • You are currently retired (or about to retire)
  • You are eligible for NZ National Superannuation from age 65.
  • Your tax code for IRD is ‘M’
  • You receive no government contribution for your KiwiSaver as you are currently retired.
  • Your KiwiSaver and other investments are in a managed fund which is a portfolio investment entity (PIE). Your PIE income is taxed at either 28%, 17.5% or 10.5%, depending on your total taxable income.
  • Your net return from the managed fund will vary, depending on your type of fund and your PIE tax rate or prescribed investor rate (PIR). The assumed returns for this calculation are:
Term
Net Return *
Short Term (2 Years)  – Cash/Term Deposit
0.5%
Medium Term (Years 3-6) – Conservative Fund
1.0%
Long Term (Years 7+) – Balanced Fund
2.0%

 

Calculator methodology

Adjusting for inflation

The returns and amounts shown are in ‘today’s dollars’ – this means that the figures represented are net of inflation.

Results

The calculator results show the total sum you will need to invest using the 3 teir waterfall structure used by this tool together with an estimate of the sums you would need to invest in each ‘bucket’ – short, medium and long term.

IMPORTANT: PLEASE READ.

This tool is provided for guidance purposes. The calculations and information provided should not be construed as personalised financial advice. We encourage you to seek personalised financial advice before acting on the information provided.

Waterfall Calculator

Welcome to our waterfall calculator.

This tool has been designed to help you understand any income shortfall you currently have in retirement and provides you with a guide on how to structure your investments by splitting your savings into 3 time-based buckets - short, medium and long term investments.

Using this model will allow you you take advantage of better returns over the medium and long term without compromising your short term income needs.

As always, it is important for you to understand that the information provided by this tool is desgned for guidance purposes only - it is NOT PERSONALISED FINANCIAL ADVICE.

If you are unsure about the results presented, you should seek support from a qualified licensed financial adviser.

You can use the 'get advice' button on this site to arrange a consultation with one of the advisers from retirement planning for this purpose.

Help is at hand

A quick KiwiSaver-question? We're here to help. Is it time to take a good look at your financial plan? We can help there too. From simple queries through to advice for retirement, investment, and financial planning, we welcome you to get in touch.

Help is at hand

A quick KiwiSaver-question? We're here to help. Is it time to take a good look at your financial plan? We can help there too. From simple queries through to advice for retirement, investment, and financial planning, we welcome you to get in touch.

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