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Complementing KiwiSaver with Investment Funds

A smart way to invest in your future

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: $797,000

($399,000 when adjusted for inflation)

Case study assumptions

The investment performance, tax and inflation assumptions used in our case studies are set by the Government for KiwiSaver schemes. We also use these assumptions for the funds in this case study.

This case study is an example to help you understand how an investment in a fund can help you achieve your investment goals. The figures and graph used are for illustration only and may not reflect actual returns.

The figures in this case study:

  • 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 in our funds each year of:
    • Conservative Fund: 2.5%
    • Conservative Balanced Fund: 3.5%
    • Balanced Fund: 3.5%
    • Balanced Growth Fund: 4.5%
    • Growth Fund: 4.5%

The investment performance figures:

  • are after fees, the fees used are a KiwiSaver industry average for your fund type that may not reflect our fees
  • are after tax using a prescribed investor rate of 28%
  • generally round savings to the nearest $1,000
  • account for tax when appropriate
  • assume that no other withdrawals are made during the course of the investment apart from the $20,000 at age 42.

Assumes Andrew is invested in the Lifetimes option of the OneAnswer KiwiSaver Scheme, with figures that:

  • assume employer contributions are 3% of the stated before-tax salary
  • assume his salary will increase by 3.5% each year
  • apply Government contributions appropriate to the contributions made and at today’s levels only
  • assume a membership fee of $1.50 per month
  • account for tax on employer contributions when appropriate
  • assume his date of birth is 1 July, with projected savings calculated in July.

ANZ New Zealand Investments Limited ('ANZ Investments') is the issuer and manager of the ANZ KiwiSaver Scheme and ANZ Investment Funds. Important information is available under terms & conditions. Download the guide and product disclosure statement.  

Our financial advice provider statement has some important information you should know about ANZ Investments and our financial advice services. Please take the time to read it.