Originally Posted by
blackcap
If you start with $52k at 25 years of age, then a 7% annual return compounding will get you to $785,000. (with no further additions)
So in theory that target should not be too hard to achieve. Most people would contribute say $2,000 per annum to their kiwisaver. If you start at age 30, you should be there by the time you reach retirement. (Big emphasis on starting early goes without saying).
For us in our 40's or later that target may be harder to achieve via traditional mean. A good friend of mine has about $52k now in his kiwisaver. Unfortunately for him he has about 20 years to retirement. That means at 7% compounding will only get him to $201,200.
So the moral of the story is.. start as early as you can.