5+5 Ideal super savings rate experts say
More advice, but maybe a lower saving rate, could be KiwiSaver solution
Thursday, June 25th 2026, 6:00AM
Picture: Ian Perera (Supplied).
A 10% total contribution rate to superannuation savings is likely to be sufficient for most people, the NZ Society of Actuaries says, but more retirees would benefit from receiving financial advice as they start the decumulation process.
While National has reaffirmed its plans to push contribution rates to 6% plus 6% if it is returned to power, the Retirement Income Interest Group at the NZ Society of Actuaries said 5% plus 5% would be a more appropriate saving rate for most people.
That would give a better balance between pre-retirement and retirement spending, it said.
Group convenor Ian Perera said lower-income earners were likely to find NZ Super provided more of what they needed in retirement. Higher income earners were likely to have other assets and more access to advice.
He said there would be other factors that could change the balance, and someone who made a first home withdrawal in their 40s or later could need to contribute at a higher amount.
But he said overall, a combined 12% contribution rate could lead to some people have higher levels of income in retirement than they did through their working years, when they might also face higher costs. “We’ve found, particularly for people who are on lower incomes and assuming that there’s no change in NZ Super… 6% plus 6% could end up with them having more income consumption power after retirement than before retirement…. That’s why we thought 10% is more a default.”
He said financial advisers had an important role to play, particularly for people who were reaching retirement.
“I think financial advice is important. I’d say one area which is particularly important is when you get closer to retirement. There’s lots of advice available about growing your KiwiSaver in the first place.
“The toughest area is when you actually get to retirement, working out ‘well I’ve got this KiwiSaver, what do I do with it?’ It’s an area where it’s not quite so easy. The good thing about KiwiSaver is in the accumulation stage it’s not too complicated.
“You can look on things like Sorted and find out what needs to be done…. I’d never say don’t get advice but it’s sort of later on when you get closer to retirement when I think it makes sense to definitely get some advice.”
| « [Weekly Wrap]: Compulsory KiwiSaver; An election issue or something else? | Simon Papa: Access to advice - Is adviser conservatism the issue? » |
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