See what a higher savings rate can change

of New Zealanders had a good idea of the income they would need in retirement.

discretionary spending when people were randomly assigned to use a budget instead of no budget.

Annual salary$80,000

Current savings rate5%

Target savings rate20%

At current rate — saved/yr

$4,000

5% of income

At target rate — saved/yr

$16,000

20% of income

Potential extra savings in year 1

$12,000

If you moved from 5% to 20% of income saved, this is the illustrative difference.

10-yr impact

$177,403

At 7% compounded

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