KiwiSaver Calculator Methodology & Assumptions
FundCompare's projections are illustrative planning tools, not predictions. They are built to align with the Financial Markets Authority (FMA) KiwiSaver projection method used on provider member statements, so the numbers you see here are comparable to those on your annual statement. Every figure is an estimate; actual returns, contributions, fees, tax, and policy settings vary over time.
General Information Only: This page provides factual data for comparison purposes and does not constitute financial advice. Individual circumstances vary.Read our disclosure
Standardised returns by risk category
The FMA method uses a single standardised return for each risk category, stated after fund fees and after 28% tax. These are deliberately conservative and identical across providers so funds can be compared on a like-for-like basis — they are not a forecast for any individual fund.
| Fund risk category | Return p.a. (after fees & 28% tax) |
|---|---|
| Defensive | 1.5% |
| Conservative | 2.5% |
| Balanced | 3.5% |
| Growth | 4.5% |
| Aggressive | 5.5% |
Results are shown in today's dollars, adjusted for 2% annual inflation. After age 65, the method assumes a 2.5% return and a drawdown spread over 25 years to age 90.
Note: our interactive calculators let you enter your own expected return for a single fund and use a single nominal rate for simplicity. Where a page shows illustrative balances at a flat rate (for example, a worked example at 7%), that figure is for teaching the mechanics of compounding and is not the FMA standardised rate above.
Contributions
The default employee and matching employer contribution rate is rising in two steps under Budget 2025. You can choose to stay on or return to 3%.
| Period | Default employee + matching employer rate |
|---|---|
| Until 31 March 2026 | 3.0% |
| From 1 April 2026 | 3.5% |
| From 1 April 2028 | 4.0% |
- Pay (and therefore contributions) is assumed to grow 3.5% per year until age 65.
- Regular voluntary contributions are assumed to continue annually until age 65. One-off contributions are assumed to repeat yearly, capped at $1,500 annually.
- No savings suspensions are assumed, and members are assumed to stay in the same fund or fund mix until age 65.
Government contribution
From 1 July 2025 the government contributes 25 cents per $1 of member contributions, up to a maximum of $260.72 per year (you contribute $1,042.86 to receive the full amount). This was halved from the previous 50c-per-$1 / $521.43 maximum. Members earning more than $180,000 no longer receive it. Projections assume the government contribution continues each year until age 65, subject to the income test.
Withdrawals & first home
Retirement projections assume no first-home or hardship withdrawals along the way, and no lump-sum withdrawal at age 65 in weekly drawdown estimates. First-home estimates apply the first-home withdrawal rule (the full balance less the $1,000 minimum that must remain) against a target deposit to estimate a savings timeframe. The HomeStart First Home Grant was discontinued on 22 May 2024 and is never included.
What these tools are — and are not — for
Useful for: comparing scenarios and supporting decisions — the effect of increasing your contribution rate, changing fund type, or staying on 3% versus the higher default.
Not designed for: predicting markets or personal life events (career breaks, future PIR changes, unforeseen policy adjustments). They do not provide personalised financial advice.
Frequently asked questions
Why do different KiwiSaver calculators give different results?
Results differ depending on whether figures are shown in today’s dollars (inflation-adjusted) or future dollars, how fees and tax are treated, what contribution behaviour is assumed, and whether savings suspensions or early withdrawals are modelled. Two honest calculators using different but reasonable assumptions can produce materially different balances.
How much is the KiwiSaver government contribution now?
From 1 July 2025 the government contributes 25 cents per $1 of member contributions, up to a maximum of $260.72 per year (you contribute $1,042.86 to receive the full amount). This was halved from the previous 50 cents per $1 / $521.43 maximum. Members earning more than $180,000 no longer receive it.
What is the KiwiSaver default contribution rate in 2026?
The default employee and matching employer rate rose from 3% to 3.5% on 1 April 2026, and rises again to 4% on 1 April 2028 (Budget 2025). Employees can choose to stay on or return to 3%, with the rate resetting to the default after 12 months unless they opt down again.
Are these projections financial advice?
No. They are illustrative planning tools, not predictions or personalised advice. They cannot account for market volatility, career breaks, future policy changes, or your individual circumstances. For personalised guidance, consult a licensed financial adviser.
Sources
- Inland Revenue — KiwiSaver changes (Budget 2025)
- Financial Markets Authority — KiwiSaver projection method for member statements
- Sorted (Te Ara Ahunga Ora Retirement Commission) — KiwiSaver guidance
Important Information
Disclaimer: This page provides general information only and does not constitute financial advice under the Financial Markets Conduct Act 2013. FundCompare.co.nz is not a licensed Financial Advice Provider (FAP).
We do not assess suitability, make recommendations, or provide personalised advice. The information shown is sourced from publicly available data and may not reflect current offerings. Past performance is not a reliable indicator of future returns. Investment returns can be negative, and you may receive back less than you invested.
Before making any decisions: Always verify current information directly with the relevant KiwiSaver provider and read their Product Disclosure Statement (PDS).
Need personalised advice? Consult a licensed Financial Advice Provider. Find advisers at fma.govt.nz
