How can ANZ Investment Funds help?

If you're looking to invest your savings or just want to complement your KiwiSaver savings, an ANZ Investment Fund can help you achieve your investment goals.

Read our case studies below to see how.

George and Karen are both aged 52 and own a business. They've worked hard over the past 25 years and managed to save a nest egg of $250,000. They want to continue building on that sum while they're still working.

They're considering investing a further $1,000 each month - on top of their lump sum - until they're ready to retire, probably when they both turn 65. So they're looking for an investment that offers both flexibility and moderate risk. They decide to invest in the Balanced Fund.

By the time they reach 65, their investment could have grown to $432,000 (or $334,000 when adjusted for inflation). However, if they chose to make regular contributions of $1,000 each month on top of their lump sum, their total savings could have grown to $639,000 (or $494,000 when adjusted for inflation).

Depending on their circumstances at retirement, George and Karen could continue to invest in the Balanced Fund or switch to a lower-risk fund, review their regular payment amount, perhaps start a regular withdrawal, or even think about a large withdrawal for a dream holiday.

Andrew is 30 years old and earns $65,000 (before tax). He’s saving for his retirement using KiwiSaver, but wants to add to his savings without locking them in. 

He contributes 3% of his salary to his KiwiSaver account. This way he benefits from his employer’s contributions and the annual member tax credit of $521.43. All his savings from his KiwiSaver account will be locked in until he’s 65.

Andrew also wants to save more for his retirement but has other more medium-term goals, such as a car or a holiday. Andrew needs withdrawal flexibility for these other goals. He wants a diversified investment that he can access at any time.

So he decides to also make regular payments of 5% of his salary into the Balanced Growth Fund. 

Here’s what Andrew’s total retirement savings might look like at age 65. Note, at age 42, Andrew made a $20,000 withdrawal from his investment fund to purchase a new car.

Total combined retirement savings

About our case studies

General assumptions

All of the case studies in this guide are examples to help you understand how an investment in a fund can help you achieve your investment goals. The figures used are for illustration only and may not reflect actual returns.

The figures in our case studies:

  • show projected savings, both:
    • where they haven’t been adjusted for the effect of rising prices over time (that is, inflation), in which case the amount does not reflect the ‘real’ buying power in the future
    • where they have been adjusted for inflation of 2% per year to show the ‘real’ buying power of the savings in the future
  • assume positive investment performance each year (after charges and taxes at a prescribed investor rate of 28%) of:
    • Balanced Fund: 4.3%
    • Balanced Growth Fund: 5.0%
  • generally round savings to the nearest $1,000
  • account for tax when appropriate
  • assume that no withdrawals are made during the course of the investment, unless specifically mentioned

Additional assumptions

Andrew’s case study:

  • assumes he is invested in the Lifetimes option of the ANZ KiwiSaver Scheme, with figures that:
    • assume employer contributions are 3% of the stated before-tax salary
    • assume his salary will increase by 2.5% each year
    • apply member tax credits appropriate to the contributions made and at today’s levels only
    • assume positive investment performance in the funds within the ANZ KiwiSaver Scheme each year (after fees and taxes using a prescribed investor rate of 28%) of:
      • Conservative Fund: 3.2%
      • Conservative Balanced Fund: 3.9%
      • Balanced Fund: 4.6%
      • Balanced Growth Fund: 5.3%
      • Growth Fund: 6.0%
    • assume a membership fee of $2 per month
    • account for tax on employer contributions when appropriate.
  • assumes his date of birth is 1 July, with projected savings calculated in July.

ANZ New Zealand Investments Limited is the issuer and manager of the ANZ KiwiSaver Scheme. Download a copy of the ANZ KiwiSaver Scheme guide and product disclosure statement (PDF 1.36MB).

 

Important information is available under terms & conditions. Download a copy of the ANZ Investment Funds guide and product disclosure statement (PDF 1.17MB).