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How to Build a Fully Funded Retirement with KiwiSaver
A fully funded retirement means having enough money to maintain your current lifestyle without needing to work. You can withdraw what you need from your KiwiSaver each year while your balance keeps growing.
KiwiSaver is New Zealand's best tool for this, but you need to use it smart.
Save at Least 6-8% of Your Income (Rising to 8% by 2028)
Recent changes mean the minimum KiwiSaver contribution rates are increasing. From April 2026, both employee and employer contributions will rise to 3.5%, then to 4% from April 2028.
If you're employed now, your employer contributes 3% and you contribute 3% (minimum 6% total). This will gradually increase to 8% total by 2028. Many experts suggest aiming higher - around 9-10% total - for a comfortable retirement.
Choose Growth Over Income
Your contributions alone won't get you there. Investment growth will do the heavy lifting. That means picking a KiwiSaver fund that invests in shares and global markets, not just bonds and cash. Yes, they're more volatile, but over decades they deliver much higher returns.
Simple comparison:
- Income assets (bonds/cash): Generally lower returns, more stable
- Growth assets (shares): Historically higher long-term returns, more volatile
Recent data shows KiwiSaver growth funds averaged around 12-15% returns in 2024, though past performance doesn't guarantee future results.
Let Time Do the Work
A growth fund returning 7-10% per year can double every 7-10 years. Over 30 years, your money can grow significantly through compound returns.
If you're in your 30s, you could be investing for 50+ years. Even in retirement, your KiwiSaver keeps working for you.
Rebalance as You Age
Start aggressive with growth assets when you're young. As you approach retirement, gradually shift to more stable investments to reduce risk.
Many KiwiSaver funds do this automatically based on your age - it's called a "life cycle" fund.
Get Professional Help
Life throws curveballs. Job changes, buying a house, health issues - these all affect your retirement plan.
Studies show people who work with financial advisers can achieve up to 3% higher returns per year and end up with 250% more in retirement savings.
Ready to Take Control?
KiwiSaver is a world-class retirement scheme when used properly. If you want to achieve a fully funded retirement, let's talk.
Mark Jones, Hallam Jones
Want to find out more? Simply give Mark Jones a call on 0800 404 202 or send him a message.
This content has been provided for information purposes only and is not intended as a substitute for specific professional advice on investments, financial planning or any other matter. Read our disclaimer notice and privacy statement.
