A smart way to invest more for your future
Andrew is 30 years old and earns $65,000 (before tax) per year. He wants to save for his retirement using KiwiSaver, but also wants to add to his savings without locking them in.
He contributes 3% of his salary to his OneAnswer KiwiSaver Scheme account. This way he benefits from his employer’s contributions and the annual Government contribution of $521.43. All his savings from his OneAnswer KiwiSaver Scheme 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 OneAnswer Multi-Asset-Class Balanced Growth Fund.
At age 42, Andrew makes a $20,000 withdrawal from the OneAnswer Multi-Asset-Class Funds to purchase a new car. Here’s what Andrew’s total retirement savings might look like at age 65.
Total combined retirement savings: $797,000
($399,000 when adjusted for inflation)