Here are some important points you need to know:
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.
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An outline of the general assumptions we have used is as follows: