Configurable Settings

(a) Tax rate is 33%.

(b) Prescribed investor rate (PIR) is 28%.

(c) Otherwise, tax and PIR rates are derived from annual earnings where specified.

(d) Inflation rate is 3%.

(e) With KiwiSaver or Managed Funds, the fund type is Growth.

(f) With Shares, Cash or Term Deposit, growth rates are:

• Shares 5%
• Cash 1%
• Term Deposit, as specified

(g) Projected savings are inflation indexed.

(h) The selected value in "starting in" is the savings period.

(i) The selected value in "to last" is the drawdown period.

Fixed Settings

(j) Growth rates (i.e., annual rates of return) are subject to tax.

(k) With KiwiSaver or Managed Funds, growth rates (nett of fees) by fund type are:

• Conservative 2%
• Moderate 4%
• Balanced 8%
• Growth 10%
• Aggressive 12%

(l) With KiwiSaver:

• Employee contributes 3.5% of gross salary
• Employer contributes 3.5% of gross salary, less tax

(m) All projected values are future values.

(n) After the final drawdown the balance of specified investments is zero.

"I want $ per year" Settings

(o) Tax rate is 33%.

(p) PIR is 28%.

(q) Inflation rate is 3%.

(r) The drawdown growth rate is 6%, subject to tax.

(s) The amount to "save":

• Accounts for NZ Super payments (single rate). If projections are for a couple, change
• Is a future value

 * Some of the above can be configured. See Calc. Settings.

Assumptions

(1) During the savings and drawdown periods:

• Growth rates are constant
• Inflation rate is constant
• Tax rate is unchanged
• PIR rate is unchanged
• No cost for switching funds

(2) When the drawdown period begins qualifies for NZ Super. Effectively, your age then is 65.

(3) Qualifies for KiwiSaver tax credit, income permitting.

(4) With selected investments (excl. Term Deposit):

• Doesn’t stop savings to any before the drawdown period
• Doesn’t withdraw funds from any before the drawdown period
• Doesn’t make lump sum payments to any during the savings or drawdown periods
• Invests savings as a lump sum at the end of each year
• Adjusts annual savings (index’s them) at the specified rate of inflation

(5) With Term Deposit, during the savings period:

• Doesn’t make regular or lump sum payments
• At each maturity, re-invests interest and principal at the specified term