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Savings Calculator Assumptions

Pathfinder has updated our assumptions for our savings calculator in alliance with government prescribed assumptions for KiwiSaver savings projections.

  • Your pay will increase by 3.5% each year and your contributions will increase in line with your pay (including voluntary contributions you may make in addition to contributions automatically deducted from your pay). For example, a $200 per month contribution today will be a $207 per month contribution next year, a $214 per month contribution the year after and so on.
  • If you make regular voluntary contributions (for example a regular direct debit) you will continue making these each year until you reach 65.
  • No amounts are withdrawn for home purchase or financial hardship.
  • You take no savings suspensions – where you stop contributions for a period of time.  
  • The Government contribution you earned in the past year (the current statement period) will continue to be paid each year until you reach age 65. For example, if you qualified for the full Government contribution of $521, the estimate will include this for every year. If you only qualified for a portion of the contribution, that same portion will be applied every year.
  • You stay in the same fund or fund mix until you are 65.
  • The real rate of return for income assets is assumed to be 1.5%
  • The real rate of return for growth assets is assumed to be 6%.
  • The rate of return is based on your fund type, as shown in the table below. The rates of return are:
    • After tax of 28%. This is the highest and most common 
    • After fees. The fees used are an average for your fund type and don’t reflect the actual fees you paid
  • The inflation assumption is currently 2% per annum.

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