Andrew is 30 years old and earns $65,000 (before tax) per year. He’s saving for his retirement using KiwiSaver, but wants a way of adding to his savings without locking them in.
He contributes 3% of his salary to his ANZ 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 ANZ 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 ANZ Investment Funds Balanced Growth Fund.
At age 42, Andrew makes a $20,000 withdrawal from the ANZ Investment Funds to purchase a new car. Here’s what Andrew’s total retirement savings might look like at age 65.
Total combined retirement savings: $798,000 ($399,000 when adjusted for inflation)