Summarised by Centrist
Your KiwiSaver balance should ideally grow as you age, but how does it compare to others in your age group?
Data from actuaries Melville Jessup Weaver shows that average balances increase with age. For instance, people aged 18 to 25 have an average of $8867, while those in their 40s have about $34,741.
By the time people reach their 50s, the average is over $50,000. Despite this, many factors, such as first-home withdrawals, income levels, and time spent out of work, impact these averages.
Dean Anderson from Kernel KiwiSaver says, “there’s a lot of variability in averages,” making direct comparisons difficult. Some people have six-figure balances, while others start over after buying a home. Planning for the future involves more than just your current balance.
Financial planner Sam Stubbs advises using the “rule of four,” meaning your savings should equal 25 times what you want annually in retirement income. Starting early, or contributing more later, can make all the difference.
