1. Invest in your future
If you’re not already investing for your future, or haven’t reviewed your retirement savings lately, now’s the perfect time to start – because the financial decisions you make today can make a big difference to your retirement lifestyle.
KiwiSaver can be a great way to save for your retirement, and it has additional benefits to help boost your nest egg even further. It can also help you buy your first home!
Here’s how it works
- If you’re employed, contributions generally come directly from your after-tax pay to your KiwiSaver account. You can choose to contribute 3%, 4%, 6%, 8% or 10% of your before-tax pay.
- If you’re contributing from your pay and are eligible, your employer generally has to contribute at least 3% of your before-tax pay as well.
- You can make voluntary contributions at any time.
- If you’re eligible, you may receive Government contributions (of up to $521.43 per year).
- You can usually begin withdrawing your savings when you turn 65 although you may be able to withdraw some or all of your savings early, for example to buy your first home.
KiwiSaver providers offer a range of funds, each with different levels of risk and expected return. Your fund choice can make a big difference to your retirement savings, so it’s important to make sure you’re invested in the fund that’s right for you.
The right fund for you depends on your situation. For example, those who have a long time until retirement may benefit from a growth fund because it aims to deliver higher returns over the long term – and the inevitable ups and downs should balance themselves out over that period. However, those who are closer to retirement or are planning to use their KiwiSaver savings to help buy their first home in the near future may benefit from investing in a more conservative fund because it gives them greater certainty about how much they’ll have when they need to withdraw.
Check our Risk Profile Questionnaire if you need help understanding your tolerance for investment risk and what fund might be right for you.
Are you on track to having the retirement lifestyle you want?
Our easy to use calculator can help you work out whether you’re on track to achieve your retirement savings goals.