skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

Choosing our Lifetimes option can make a big difference

Anisha is 25 years old and earns $35,000 a year (before tax). She contributes 3% of her salary to her KiwiSaver account, and her employer also makes a contribution of 3% of her salary. Every year she receives the annual Government contribution.

She’s not sure what fund to choose, so she selects the Lifetimes option. She likes the fact that her KiwiSaver savings will move from fund to fund automatically as she gets older, which means her savings will always be invested in a fund that has an appropriate risk/return profile for her age. With 40 years to go before retirement age, she wants to make the best use of that time to grow her savings.

Choosing the Lifetimes option is not only simpler, it could make a big difference to the amount Anisha has in her KiwiSaver account when she’s 65. In fact, as the illustration below shows, she could be around $66,000 better off in our Lifetimes option than in our Conservative Fund. That’s a difference worth having!

Case study assumptions

This case study is an example to help you understand how your choices can affect your KiwiSaver savings. The figures used are for illustration only and may not reflect actual returns. The underlying return, tax and inflation assumptions are set by the Government.

For this case study, we’ve assumed that:

  • Anisha’s employer makes employer contributions of 3% of her before-tax salary.
  • Anisha receives Government contributions appropriate to her contributions and at today’s levels only.
  • Anisha receives a salary increase of 3.5% each year.
  • Our funds achieve the following positive investment performance each year: 
    • 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 above are:
    • after fees, the fees used are an industry average for the fund type that may not reflect our fees, and
    • after tax, using a prescribed investor rate of 28%
  • Anisha’s KiwiSaver membership fee is $1.50 per month.
  • Anisha’s birthday is 1 July, with projected savings calculated in July.

The figures in this case study show projected savings both:

  • Where they haven't been adjusted for inflation of 2% per year to show the 'real' buying power of the savings in the future. 

We've also rounded savings to the nearest $1,000 and accounted for tax on employer contributions.


ANZ New Zealand Investments Limited ('ANZ Investments') is the issuer and manager of the ANZ KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (together, the 'schemes'). 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 and our financial advice services. Please take the time to read it.