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Why save for retirement?
Our ability to earn an income is our passport to provide lifestyle choices for ourselves and our families. In short, it helps to maintain our quality of life.
If we wish that quality of life to continue after we have stopped working, it's a good idea to start planning for this as soon as we can. The earlier we start the easier it will be to maintain our quality of life for an enjoyable and worry free retirement. Retirement may seem a long way off but the sooner we start saving for this the more enjoyable it will be! This is outlined on the Retirement Commissioner's website: www.sorted.org.nz.
Sure, New Zealand Superannuation will pay some money, which at current levels for a married couple is approximately $200 a week after tax per person. Will this provide you with the quality of life you desire in your retirement? We believe it is a good idea to save for your retirement!
Why have we developed the Automatic Fund?
We think you are entitled to a savings plan that is personal, simple,
transparent, cost-effective, and above all designed for committed retirement
savings. We also believe your money should be working for you from day one and
that you should be able to track the progress you are making with your savings.
In other words, access to online information of your personal
account balance. We have created the Automatic Fund to deliver all of this for
you! We believe the Automatic Fund is a great way to save for retirement.
How Much Do I Pay?
The rates of contribution are:
2% of your gross salary or wage; or 4% or 8% of your gross salary or wages if you give your employer a notice requiring contributions to be deducted at either of these rates.
Compulsory employer contributions
From 1 April 2009 all employers are required to match employee contributions for KiwiSaver and complying superannuation funds at a level of 2% of gross salary.
All employer contributions must be made though Inland Revenue, not direct to Civic.
Additional or Lump Sum Contributions
In addition to the 2% or 4% or 8% of your gross salary or wage paid through your employer you may also at any time make additional regular contributions or lump sum contributions to the Scheme.
Additional regular contributions are to be remitted to the IRD.
Any additional regular or lump sum contribution you make may be subject to a minimum amount. Details of the current minimum amount and the appropriate method of payment can be obtained from the Trustee. The current minimum additional regular contribution is $520 per annum, the minimum increase in additional regular contributions is $260 per annum and the minimum lump sum contribution is $500. Any additional regular or lump sum contribution you make may or may not attract a subsidy from your Employer.
What is SuperEasy KiwiSaver?
The Scheme is a cash accumulation scheme designed to provide you and your
dependants with certain benefits. Your contributions and any contributions from
your Employer are each allocated to separate accounts known as your Member's
Account and your Employer's Account. These accounts are invested in one or more
investment options as selected by you, and their value varies in accordance
with the return achieved by the investment options chosen.
Members can transfer existing fund balances from another employer or private
superannuation scheme into SuperEasy KiwiSaver at any time. The SuperEasy KiwiSaver administrator
makes no charge for this.
Members are also able to deposit additional lump sums into SuperEasy KiwiSaver at any
time at no extra cost. The current minimum lump sum contribution is $500.
All of this can be done by contacting your
local Human Resources Department if your Employer is a Participating Employer
of SuperEasy KiwiSaver, or Civic Assurance if
you are paying contributions directly from your bank account.
What is the Automatic
Fund?
The Automatic Fund has target asset allocations which are set by the Scheme’s Trustee from time to time and which depend on the member’s age, with the initial allocation based on the age of the member when they enter the fund. Each month the members’ savings will be reviewed against the targets that are set out in the table below:.
Within each of these asset classes, the current target asset allocation of the Automatic Fund has a range of investments including overseas equities (hedged, un-hedged and socially responsible investment funds), Trans-Tasman equities, property, overseas and New Zealand fixed interest securities and cash. Currently the target asset allocation for overseas equities for each age includes 10 % investment in socially responsible investment funds. The target asset allocation of the Automatic Fund is set out in the table below:
| Asset | Age 20 | Age 40 | Age 60 | Age 80 |
| Overseas Equities Un-hedged | 53.4% | 32.5% | 17.1% | 5.7% |
| Overseas Equities Hedged | 11.6% | 12.5% | 10.4% | 4.3% |
| Trans-Tasman Equities | 20% | 17.5% | 12.5% | 5% |
| Property | 10% | 12.5% | 15% | 10% |
| Overseas Fixed Interest Hedged | 2% | 12% | 20% | 15% |
| New Zealand Fixed Interest | 1% | 8% | 20% | 30% |
| Cash | 2% | 5% | 5% | 30% |
The Automatic Fund will automatically reduce investment risk as you get older
and removes the need to continually reassess your investment strategy. Each
month as you get older the Automatic Fund is designed to smoothly reduce your
investment risk by reducing your target proportion of investments in
growth assets (eg shares) and increasing your target proportion of investments in
income assets (eg fixed interest investments). This reduces the need to recover
from any short-term losses and provides you with greater stability as you
approach or are in retirement.
AMP Capital Investors (NZ) Ltd and ASB Group Investments jointly currently manage the assets in the Automatic Fund.
AMP Capital Investors (NZ) Ltd
AMP Capital Investors (NZ) Ltd is a specialist investment manager with over $11 billion of funds under management. AMP Capital Investors operates with a pure investment focus independently but with the benefit of the resources of its parent AMP Limited which is listed on the Australian and New Zealand stock exchanges.
ASB Group Investments Ltd
ASB Group Investments Limited (ASBGI) was established in 2003 combining the investment businesses of ASB and Sovereign and is a wholly owned subsidiary of the Commonwealth Bank of Australia. ASBGI is ranked as New Zealand’s third largest fund manager with over $4.7 billion of funds under management.
If you would like more information on any aspect of this fund, this is
available in the SuperEasy KiwiSaver Investment
Statement and Prospectus.
Growth Fund
This portfolio has a higher proportion of investments in domestic and
international markets identified as having special growth potential. Risk is
lowered through investment in a core of high earning fixed interest and
short-term deposits.
The objective is to achieve a high level of real returns over the medium to
long term through substantial investment in shares, accepting that the returns
may be subject to significant short-term variations. This option is suitable
for members willing to take a reasonable risk for potentially higher returns
over the longer term through the use of selected domestic and international
asset classes with special perceived growth potential.
The target asset allocation of this fund is set by the Scheme's Trustee from
time to time. The current target is indicated in the diagram below.
AMP Capital Investors (NZ) Ltd and ASB Group Investments Limited currently jointly manage the assets in the Growth Fund.
AMP Capital Investors (NZ) Ltd
AMP Capital Investors (NZ) Ltd is a specialist investment manager with over $11 billion of funds under management. AMP Capital Investors operates with a pure investment focus independently but with the benefit of the resources of its parent AMP Limited which is listed on the Australian and New Zealand stock exchanges.
ASB Group Investments Limited
ASB Group Investments Limited (ASBGI) was established in 2003 combining the investment businesses of ASB and Sovereign and is a wholly owned subsidiary of the Commonwealth Bank of Australia. ASBGI is ranked as New Zealand’s third largest fund manager with over $4.7 billion of funds under management.
Balanced Fund
The fund is invested in a diversified range of investments including domestic
and international fixed interest securities and shares, short-term deposits and
New Zealand property.
The objective is to achieve positive real returns through investment in growth
assets, while controlling volatility through full diversification of the Fund's
assets. This option is suited to members seeking long-term growth with risk
limited by broad diversification.
The target asset allocation of this fund is set by the Scheme's Trustee from
time to time. The current target is indicated in the diagram below.
AMP Capital Investors (NZ) Ltd and ASB Group Investments currently jointly manage the
assets invested in the Balanced Fund.
AMP Capital Investors (NZ) Ltd
AMP Capital Investors (NZ) Ltd is a specialist investment manager with over $11 billion of funds under management. AMP Capital Investors operates with a pure investment focus independently but with the benefit of the resources of its parent AMP Limited which is listed on the Australian and New Zealand stock exchanges.
ASB Group Investments Ltd
ASB Group Investments Limited (ASBGI) was established in 2003 combining the investment businesses of ASB and Sovereign and is a wholly owned subsidiary of the Commonwealth Bank of Australia. ASBGI is ranked as New Zealand’s third largest fund manager with over $4.7 billion of funds under management.
Income Fund
Investments in this portfolio are predominantly in the short-term money market,
domestic and international fixed interest securities, and cash.
Other investments include Overseas and Australasian shares.
The objective is to reduce the chance of negative returns over the short term
through higher proportions of investment in defensive assets, such as cash and
bonds, while still providing an opportunity for positive real returns over the
longer term by investing a proportion of the Fund in growth assets such as
shares and property.
The target asset allocation of this fund is set by the Scheme's Trustee from
time to time. The current target is indicated in the diagram below.
AMP Capital Investors (NZ) Ltd and ASB Group Investments Limited currently jointly manage the assets in the Income
Fund.
AMP Capital Investors (NZ) Ltd
AMP Capital Investors (NZ) Ltd is a specialist investment manager with over $11 billion of funds under management. AMP Capital Investors operates with a pure investment focus independently but with the benefit of the resources of its parent AMP Limited which is listed on the Australian and New Zealand stock exchanges.
ASB Group Investments Limited
ASB Group Investments Limited (ASBGI) was established in 2003 combining the investment businesses of ASB and Sovereign and is a wholly owned subsidiary of the Commonwealth Bank of Australia. ASBGI is ranked as New Zealand’s third largest fund manager with over $4.7 billion of funds under management.
Conservative Fund
The fund is predominately invested in the short-term money market, domestic and international fixed interest securities, and cash.
The objective is to reduce the likelihood of negative returns over the short-term. It has higher proportions of investment in defensive assets, such as cash and bonds, while still providing an opportunity for positive real returns over the longer term by investing a smaller proportion of the Fund in growth assets such as equities and property.
The target asset allocation of this fund is set by the Scheme’s Trustee from time to time. The current target is indicated in the diagram below.
AMP Capital Investors (NZ) Ltd and ASB Group Investments currently jointly manage the
assets invested in the Conservative Fund.
AMP Capital Investors (NZ) Ltd
AMP Capital Investors (NZ) Ltd is a specialist investment manager with over $11 billion of funds under management. AMP Capital Investors operates with a pure investment focus independently but with the benefit of the resources of its parent AMP Limited which is listed on the Australian and New Zealand stock exchanges.
ASB Group Investments Ltd
ASB Group Investments Limited (ASBGI) was established in 2003 combining the investment businesses of ASB and Sovereign and is a wholly owned subsidiary of the Commonwealth Bank of Australia. ASBGI is ranked as New Zealand’s third largest fund manager with over $4.7 billion of funds under management.
If you would like more information on any aspect of these funds this is
available in the SuperEasy KiwiSaver Investment
Statement and Prospectus.
What have been the investment returns?
The actual level of your returns cannot be predicted in advance and will depend on the accumulated value of your Accounts at the time a benefit is paid. The key factors that determine the returns are the contributions paid, the choice of investment option, the actual earnings achieved by the fund managers and the operating costs of the Scheme.
In the tables below we have shown annual returns.
The returns arise from a single payment made at the start of the year, before investment fees, tax and expenses.
Automatic Fund
Year Ending |
Age
20 |
Age
30 |
Age
40 |
Age
50 |
Age
60 |
Age
70 |
Age
80 |
| 30/06/2010 |
6.89% |
8.37% |
9.96% |
11.84% |
12.43% |
10.35% |
9.76% |
| 31/05/2010 |
11.00% |
12.21% |
13.43% |
14.97% |
15.06% |
12.04% |
10.76% |
| 30/04/2010 |
13.68% |
16.02% |
17.78% |
19.75% |
19.56% |
15.28% |
12.95% |
| 31/03/2010 |
25.11% |
25.66% |
26.31% |
27.11% |
25.94% |
20.00% |
16.17% |
| 28/02/2010 |
9.53% |
11.97% |
13.78% |
15.76% |
15.94% |
12.92% |
11.32% |
| 31/01/2010 |
6.69% |
8.96% |
10.49% |
12.21% |
12.44% |
10.19% |
9.05% |
| 31/12/2009 |
12.97% |
14.36% |
15.08% |
16.01% |
15.65% |
12.76% |
10.77% |
| 30/11/2009 |
9.11% |
11.14% |
12.50% |
14.03% |
14.39% |
12.52% |
11.09% |
| 31/10/2009 |
2.58% |
4.68% |
6.18% |
7.81% |
8.77% |
8.82% |
8.58% |
| 30/9/2009 |
-6.33% |
-4.14% |
-1.83% |
0.78% |
2.83% |
4.17% |
6.42% |
| 31/8/2009 |
-8.27% |
-6.52% |
-4.44% |
-2.08% |
0.39% |
2.84% |
5.93% |
| 31/7/2009 |
-10.09% |
-8.46% |
-6.69% |
-4.70% |
-2.20% |
0.93% |
4.14% |
| 30/6/2009 |
-15.59% |
-13.96% |
-12.08% |
-10.04% |
-6.81% |
-2.20% |
2.30% |
| 31/5/2009 |
-18.21% |
-16.74% |
-14.70% |
-12.55% |
-8.78% |
-3.43% |
1.93% |
| 30/4/2009 |
-13.48% |
-14.11% |
-13.91% |
-13.67% |
-10.04% |
-4.28% |
1.23% |
| 31/3/2009 |
-18.45% |
-18.39% |
-17.95% |
-17.53% |
-13.61% |
-6.94% |
-0.75% |
| 28/2/2009 |
-9.55% |
-11.33% |
-12.08% |
-12.94% |
-9.34% |
-3.46% |
2.03% |
| 31/1/2009 |
-9.93% |
-11.00% |
-10.73% |
-10.63% |
-7.05% |
-1.70% |
3.43% |
| 31/12/2008 |
-19.92% |
-19.73% |
-17.61% |
-15.70% |
-11.13% |
-4.99% |
1.34% |
| 30/11/2008 |
-18.35% |
-19.45% |
-19.06% |
-18.88% |
-16.30% |
-12.70% |
-6.95% |
| 31/10/2008 |
-19.68% |
-19.26% |
-16.57% |
-14.02% |
-10.04% |
-5.32% |
0.19% |
| 30/9/2008 |
-11.78% |
-11.47% |
-9.32% |
-7.30% |
-4.60% |
-1.33% |
2.26% |
| 31/8/2008 |
-10.14% |
-9.33% |
-6.92% |
-4.58% |
-2.48% |
0.00% |
2.51% |
| 31/7/2008 |
-8.30% |
-8.25% |
-6.45% |
-4.73% |
-2.56% |
-0.12% |
2.61% |
| 30/6/2008 |
-8.51% |
-8.67% |
-6.72% |
-4.76% |
-2.65% |
-0.69% |
1.52% |
| 31/5/2008 |
-8.62% |
-8.41% |
-6.30% |
-4.16% |
-2.21% |
-0.32% |
1.55% |
| 30/4/2008 |
-6.29% |
-6.13% |
-4.39% |
-2.62% |
-1.00% |
0.56% |
2.12% |
| 31/3/2008 |
-10.26% |
-9.84% |
-7.45% |
-5.01% |
-2.97% |
-0.92% |
0.93% |
| 29/2/2008 |
-8.54% |
-7.92% |
-5.65% |
-3.32% |
-1.59% |
0.18% |
1.62% |
| 31/1/2008 |
-8.36% |
-7.91% |
-5.79% |
-3.62% |
-1.89% |
-0.12% |
1.41% |
| 31/12/2007 |
-0.04% |
0.41% |
1.24% |
2.13% |
2.62% |
3.13% |
3.45% |
| 30/11/2007 |
-0.23% |
0.37% |
1.36% |
2.41% |
2.87% |
3.46% |
3.65% |
| 31/10/2007 |
3.90% |
4.63% |
5.14% |
5.71% |
5.59% |
5.58% |
5.11% |
| 30/9/2007 |
4.17% |
4.83% |
5.25% |
5.72% |
5.56% |
5.52% |
5.04% |
| Year Ending |
Growth Fund Return (% pa) |
Balanced Fund Return (% pa) |
Income Fund Return (% pa) |
Conservative Fund Return (% pa) |
| 30/06/2010 |
8.28% |
10.51% |
9.80% |
7.78% |
| 31/05/2010 |
12.26% |
13.45% |
11.75% |
8.22% |
| 30/04/2010 |
16.88% |
17.89% |
15.36% |
8.98% |
| 31/03/2010 |
27.71% |
26.88% |
21.64% |
11.71% |
| 28/02/2010 |
12.41% |
13.62% |
12.05% |
7.30% |
| 31/01/2010 |
8.74% |
9.68% |
8.65% |
5.51% |
| 31/12/2009 |
14.81% |
13.99% |
11.58% |
6.86% |
| 30/11/2009 |
11.98% |
12.73% |
11.50% |
8.00% |
| 31/10/2009 |
2.7% |
6.75% |
8.35% |
7.37% |
| 30/9/2009 |
-7.35% |
-4.44% |
5.46% |
3.79% |
| 31/8/2009 |
-12.38% |
-9.38% |
1.50% |
2.98% |
| 31/7/2009 |
-14.16% |
-11.04% |
1.13% |
2.18% |
| 30/6/2009 |
-18.92% |
-15.26% |
-2.81% |
1.17% |
| 31/5/2009 |
-19.61% |
-18.87% |
-5.13% |
0.45% |
| 30/4/2009 |
-18.66% |
-16.66% |
-5.90% |
1.58% |
| 31/3/2009 |
-22.50% |
-19.70% |
-8.15% |
-0.08% |
| 28/2/2009 |
-18.45% |
-15.77% |
-4.23% |
1.73% |
| 31/1/2009 |
-18.0% |
-15.25% |
-2.85% |
2.46% |
| 31/12/2008 |
-22.08% |
-21.05% |
-7.50% |
1.15% |
| 30/11/2008 |
-20.90% |
-21.94% |
-7.91% |
-1.23% |
| 31/10/2008 |
-22.76% |
-23.00% |
-9.93% |
-3.20% |
| 30/9/2008 |
-15.78% |
-11.19% |
-4.30% |
2.17% |
| 31/8/2008 |
-8.45% |
-4.58% |
-1.23% |
2.94% |
| 31/7/2008 |
-6.27% |
-3.72% |
-1.74% |
2.53% |
| 30/6/2008 |
-9.98% |
-3.45% |
-2.23% |
2.38% |
| 31/5/2008 |
-6.36% |
-1.57% |
-0.38% |
9.36% |
| 30/4/2008 |
-5.67% |
-0.68% |
-0.10% |
11.75% |
| 31/3/2008 |
-8.71% |
-3.02% |
-1.83% |
|
| 29/2/2008 |
-6.65% |
-2.24% |
-1.25% |
|
| 31/1/2008 |
-6.44% |
-1.17% |
-0.68% |
n/a |
| 31/12/2007 |
1.11% |
3.67% |
2.41% |
as Fund |
| 30/11/2007 |
1.43% |
5.02% |
2.83% |
opened |
| 31/10/2007 |
6.70% |
7.95% |
4.98% |
1/4/2008 |
| 30/9/2007 |
6.47% |
5.69% |
4.48% |
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Up to the year ended 31 August 2007, the returns arise from a single payment made at the start of the year,
net of all fees, tax and expenses.
Automatic Fund
Year Ending |
Age
20 |
Age
30 |
Age
40 |
Age
50 |
Age
60 |
Age
70 |
Age
80 |
| 31/08/2007 |
4.82% |
5.15% |
5.16% |
5.22% |
4.96% |
4.87% |
4.48% |
| 31/07/2007 |
1.52% |
2.66% |
3.77% |
4.95% |
5.02% |
5.34% |
4.83% |
| 30/06/2007 |
3.44% |
4.81% |
5.86% |
6.99% |
6.77% |
6.76% |
5.83% |
| 31/05/2007 |
8.33% |
9.17% |
9.23% |
9.33% |
8.61% |
8.04% |
6.89% |
| 30/04/2007 |
1.97% |
2.82% |
3.74% |
4.70% |
4.84% |
5.12% |
4.82% |
| 31/03/2007 |
1.68% |
2.59% |
3.60% |
4.66% |
4.83% |
5.16% |
4.85% |
| 31/12/2006 |
11.53% |
11.76% |
10.95% |
10.15% |
9.13% |
8.20% |
7.07% |
| 30/09/2006 |
10.90% |
10.80% |
9.46% |
8.20% |
7.06% |
5.81% |
4.84% |
| 31/05/2006 |
19.28% |
18.96% |
16.58% |
14.26% |
12.29% |
10.22% |
8.55% |
| 28/02/2006 |
20.68% |
20.57% |
18.62% |
16.68% |
14.87% |
12.84% |
11.11% |
| 31/12/2005 |
20.11% |
20.20% |
18.62% |
17.05% |
15.38% |
13.53% |
11.82% |
| Year Ending |
Growth Fund Return (% pa) |
Balanced Fund Return (% pa) |
Income Fund Return (% pa) |
| 31/08/2007 |
7.46% |
7.69% |
5.05% |
| 31/07/2007 |
5.56% |
5.16% |
4.37% |
| 30/06/2007 |
7.29% |
5.82% |
4.66% |
| 31/05/2007 |
8.31% |
9.61% |
5.36% |
| 30/04/2007 |
5.12% |
6.87% |
4.26% |
| 31/03/2007 |
4.44% |
5.39% |
3.75% |
| 31/12/2006 |
10.10% |
10.91% |
6.21% |
| 30/09/2006 |
8.81% |
9.14% |
5.37% |
| 31/05/2006 |
15.80% |
12.51% |
9.07% |
| 28/02/2006 |
16.96% |
7.37% |
9.93% |
| 31/12/2005 |
16.42% |
8.75% |
10.12% |
Historical Returns
SuperEasy was established on 1 June 2005 so we have shown the historical returns for our Income, Balanced and Growth Funds in our Superplan Scheme, going back to 1999. Superplan is our scheme that was in existence before we introduced our SuperEasy Scheme. These are the annual returns, net of all fees, tax and expenses.
Year Ending
31st December |
Growth Fund Return (% pa) |
Balanced Fund Return (% pa) |
Income Fund Return (% pa) |
| 2004 |
7.30% |
8.80% |
5.30% |
| 2003 |
7.40% |
6.90% |
4.30% |
| 2002 |
-10.14% |
-6.15% |
0.50% |
| 2001 |
0.60% |
0.60% |
5.80% |
| 2000 |
1.40% |
1.52% |
4.75% |
| 1999 |
12.40% |
9.14% |
5.30% |
It is important to note that past performance is not necessarily indicative of future performance.
What happens after I join?
Your individual account will be set up as a cash accumulation scheme designed to provide you and
your dependants with certain benefits. Your contributions and any contributions from your
Employer are individually held in trust for you until you are eligible to receive New Zealand
Superannuation (currently age 65) or five years membership in the scheme, whichever is the later.
Your Account Balance is shown in the Member Services section of this website.
Who is providing
SuperEasy KiwiSaver?
The Trustee of the Scheme is:
Local Government Superannuation Trustee Limited
P O Box 5521
Wellington 6140
Telephone: (04) 978 1250
The Administration and Investment Manager of the Scheme is the New Zealand Local Government
Insurance Corporation trading as Civic Assurance. The address is:
Civic Assurance House
9th Floor
114 Lambton Quay
Wellington 6145
P O Box 5521
Wellington 6140
Telephone: (04) 978 1250
For more information visit the Civic Assurance website;
www.civicassurance.co.nz
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