With the taxed employer-matched contribution, most savers were shuffling away 5 per cent of their income, Harris said.
According to Milford analysis, a 35-year-old worker earning $55,000 annually, with $20,000 in their KiwiSaver already and contributing 3 per cent of their paycheck to a balanced fund with an average 6 per cent return, would have about $600,000 by the retirement age of 65.
If that saver contributed more, or switched to a growth fund, the retirement sum swelled to as much as $1 million, according to the analysis.
“For most people, they would consider themselves wealthy.”
However, that model was not adjusted for inflation, which was above 7 per cent at the beginning of 2023.
Harris had a larger concern than inflation, which he said could wipe hundreds of thousands of dollars off retirement savings accounts in the long term - find out what it is in this interview on Markets with Madison.
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