KiwiSaver belongs to the KiwiSavers

Account balances vary according to the earnings and priorities of the individual KiwiSaver. Those who joined KiwiSaver in 2007, earning on average less than $30,000 each year and now aged 65 are forecast to have a balance of $6,514 today, a KiwiSaver who has been earning more than $120,000 each year can expect to have a balance of $63,327 today.

KiwiSavers who joined the scheme in 2007 and turn 65 in 2028 can expect to retire with a substantial sum. Those earning $30,000 pa or less, $37,679 and those earning over $120,000 pa, $326,431.

KiwiSavers became eligible to withdraw their funds form the scheme in 2013 with over 70,000 people now free to spend their savings. A recent Retirement Commission survey found that, of the more than 70,000 KiwiSavers who’ve become eligible to withdraw their funds since 2013, around one third have cashed up and spent some of their savings on holidays, cars and home improvements.

New Zealand Income Guarantee (NZIG), a new company, is developing a retirement income product that replaces the old style annuity products, where investors lost control of their capital, experienced high fees and often received low returns. Managing director Ralph Stewart said;