How It Works
A look at how we estimate your retirement projections.
Important: This tool is for informational and educational purposes only. The projections shown are estimates based on the assumptions you provide and may not reflect actual future results. This is not financial, tax, or legal advice. Please consult a qualified professional before making financial decisions.
Our Approach
Financial planning can feel like a black box. We aim to make it transparent. Tax and NZ Superannuation calculations use published IRD and MSD formulas, so you can see how the numbers are derived and understand how changes to your inputs affect your projections.
What We Calculate
NZ Superannuation
- Eligibility from age 65 (universal, residence-based)
- Flat-rate payments based on living situation (single, couple, sharing)
- Annual CPI adjustments applied to Super rates
- Couple combined and single living alone rates modelled
- Net-of-tax Super rates using current PAYE thresholds
NZ Super Optimiser (Pro)
Explore how different retirement timing and living arrangements affect your NZ Super entitlements.
- Living arrangement comparisons (single, couple, sharing)
- After-tax Super projections
- Coordination with KiwiSaver drawdown timing
- Lifetime benefit estimates based on your inputs
NZ PAYE + ACC
- 2026 NZ marginal PAYE tax brackets (10.5%, 17.5%, 30%, 33%, 39%)
- ACC earner levy on salary and wages
- Self-employed income tax and ACC levies
- NZ Super taxed as regular income via PAYE
Capital Gains & Investment Tax
- New Zealand has no general capital gains tax
- KiwiSaver withdrawals are tax-free (PIE tax handled at fund level)
Bright-line property rules, FIF tax on overseas shares, and detailed PIE rate modelling are not yet included.
KiwiSaver
- Employee contribution rates (3%, 4%, 6%, 8%, 10%; 3.5% from 1 April 2026)
- Employer contribution (minimum 3% today, 3.5% from 1 April 2026)
- Government contribution (up to $260.72/year)
- Withdrawal eligibility at age 65 or first home purchase
- Fund type modelling (conservative, balanced, growth, aggressive)
- No required minimum distributions — flexible drawdown
Tax-Efficient Withdrawal Insights (Pro)
See how different withdrawal sequences may affect your estimated tax burden over time.
- Tax-efficient withdrawal sequencing (cash → taxable → KiwiSaver at 65)
- Marginal PAYE rate projections year by year
- NZ Super interaction with other income sources
Goal Planning (Pro)
Track specific financial goals and see how they fit into your overall projections.
- Custom goals for travel, education, home purchases, and more
- Feasibility scoring based on projected balances
- Impact analysis on retirement outlook
Expense Phase Modelling (Pro)
Research suggests spending patterns often change throughout retirement. This optional feature models three phases:
- Go-Go phase: Early active years at full planned spending
- Slow-Go phase: Moderate reduction as activity decreases (default 85%)
- No-Go phase: Lower discretionary spending in later years (default 75%)
Monte Carlo Simulations (Pro)
Monte Carlo runs 1,000 simulations with year-by-year return variation to model sequence-of-returns risk. Results show a range of outcomes, not a prediction.
- Percentile bands (10th, 25th, 50th, 75th, 90th) showing the spread
- Estimated success probability (how often the portfolio lasts)
What We Don't Calculate
To keep the tool focused, we've intentionally excluded some areas:
- Trust or company structures
- Working for Families tax credits
- Estate and inheritance planning
- Rental property income (can be entered as "other income")
- Part-time work during retirement
- Long-term care or detailed healthcare costs
- Divorce, remarriage, or complex family structures
- NZ Super overseas pension deductions
- KiwiSaver hardship withdrawals
Default Assumptions
Projections use these baseline assumptions. You can create what-if scenarios to see how different values affect your estimates.
These are starting points based on historical averages—actual future returns and inflation will differ.
Data Sources
Tax brackets, contribution limits, and NZ Superannuation parameters come from official sources and are updated annually:
- Inland Revenue (IRD) for PAYE tax brackets, ACC levies, and KiwiSaver rules
- Ministry of Social Development (MSD) for NZ Superannuation rates and eligibility
- Historical market data for default return and volatility assumptions
Limitations
No projection can predict the future. Markets fluctuate, tax laws change, and personal circumstances evolve. The estimates shown here are meant to help you explore possibilities—not to guarantee outcomes or tell you what to do.
Reviewing your plan periodically and working with a qualified financial adviser or tax professional for personalised guidance is a good practice.