Milford KiwiSaver Digital Advice Tool Assumptions

Here are some important points you need to know:

  • The projection of your KiwiSaver balance in this Milford Digital Advice Tool is an estimate only and is not a guaranteed outcome.
  • It is important you revisit the tool regularly and at least every three years or when your circumstances change, to ensure you are on track to reach your KiwiSaver goal.
  • The tool is designed for use by current Milford KiwiSaver members or individuals looking to invest in the Milford KiwiSaver Plan who would like advice to identify their KiwiSaver goal, contribution rates, time horizon and appetite for risk.
  • The assumptions in this tool have been prepared by an independent actuarial firm, EriksensGlobal and validated by Milford. They should not be used to compare Milford fund projections with other KiwiSaver providers.

Other important information

The projections are based on the information you have provided in the tool, and a set of detailed assumptions. It uses an average annual return expectations for each of the Milford KiwiSaver Funds and therefore your actual returns will differ each year but over the term of the illustration it will form a helpful guide as to what your KiwiSaver investment could achieve.

It is important to be aware that the assumptions used in this tool differ to the assumptions used in your KiwiSaver Annual Member Statement, which uses a set of Government mandated assumptions based on their own expected market and asset class returns across a representative range of diversified funds. In some cases, the return assumptions used in this tool will be higher than the Government mandated return assumptions and for others, lower. The key point being that the assumed returns in this Digital Advice Tool are relevant only to the Milford KiwiSaver Funds.

The assumed returns in this tool are intended to provide you with a more realistic estimate of what we think the Milford KiwiSaver Fund returns might be, based on our investment expertise and the track record of our funds’ past performance, albeit past performance is no guarantee of future returns. These assumptions have been prepared by an independent actuarial firm, EriksensGlobal and validated by Milford. This also means that the tool’s estimate of your KiwiSaver balance when you reach 65 is highly likely to differ from the estimate set out in your KiwiSaver Annual Member Statement which is required to use the Government assumptions which may have fewer variables and use different return assumptions.

Milford will regularly review its Digital Advice Tool assumptions and inform you of any material changes using the email address you provided when you used this tool. We would also expect you to revisit the tool when you are nearing retirement.


An outline of the general assumptions we have used is as follows:

  1. Tax – we have assumed all clients pay the highest rate of PIR tax at 28%
  2. We assume your wages or salary will increase each year by 3.5%
  3. The assumed rate of inflation is 2% p.a.
  4. Our tool assumes your Government contributions entitlement will continue until age 65, up to a maximum of $521.43 per annum and you take no savings suspensions.
  5. We have assumed life expectancy age from the latest life expectancy tables produced by Statistics New Zealand.
  6. New Zealand superannuation payments will be excluded unless you opt to include them.
  7. If your recommended fund pre-retirement is the Aggressive or Active Growth Fund, the post retirement age projection will use the Balanced Fund expected returns.
  8. If your recommended fund pre-retirement is the Balanced, Moderate, Conservative or Cash Fund, the projection uses those funds’ expected returns pre and post retirement.