New Year's resolutions to ramp up your KiwiSaver and investments

January 2020

The start of a new year is the perfect time to review your financial goals. Here are some simple New Year’s resolutions to help you get the best from your KiwiSaver savings and Investment Funds in 2020.

1. Track your progress

Everyone has their own financial goals, whether it’s saving for retirement, buying a home, travel, financial freedom or something else. Whatever your goals, the key to achieving them is to regularly check your progress – and take action if you’re not on track.

The first step is to see where you are now - remember you can monitor your ANZ KiwiSaver or Investment Fund accounts anytime via ANZ Internet Banking or goMoney. With your KiwiSaver account, you can also use our KiwiSaver account calculator to help you work out how much you’re likely to have when you retire, based on your current arrangements. If you think you’re not where you want to be, it may be worth reviewing your budget. You may be able to cut your spending on things that aren’t really important, so you can increase the amount you have to invest (check out our guide on setting a budget or help).

2. Maximise your Government Contribution

If you’re eligible, the Government will contribute up to $521.43 each year to your KiwiSaver account – so it makes sense to maximise the Government contribution to help you save for your retirement.

To get the maximum amount, you need to contribute at least $1,042.86 each year (between 1 July and 30 June). If you’re employed, earning at least $35,000 and contributing at least 3% of your salary or wages, you should reach that amount automatically. If not, you can top up your contributions by either increasing your contribution rate, or making voluntary one-off or regular contributions. 

3. Make sure you're in the right fund

With both KiwiSaver and Investment Funds, we offer a range of different funds. Each has a different mix of assets and different levels of risk and potential returns, and you can switch between them at any time by calling us (you can also switch between KiwiSaver funds via ANZ Internet Banking). It’s important to make sure you’re in the right fund for you.

The best option for you depends on your particular situation and your financial goals. For example, if you’re saving for the long term, a fund with more exposure to growth assets like shares and property could be a good idea. There’s more risk that the value of your investment could fluctuate in the short term, but in the long term you could achieve a higher return. On the other hand, if you’re likely to access your money in the short term, you may prefer a fund with a lower risk profile to give you more certainty.

It’s a good idea to understand your own attitude to investing, particularly to investment risk. Use our Risk Profile Questionnaire to help you understand your tolerance for risk and what this means when it comes to choosing a fund.

We recommend you review your choice of fund (or funds) annually to make sure it’s still the most appropriate option for you. We can connect you to a financial adviser who can provide you with advice tailored to your personal situation.

4. Review your own contributions

If you’re employed, the ‘default’ rate for KiwiSaver contributions from your wages or salary is 3% - but you can choose to contribute 4%, 6%, 8% or 10% instead if you want to. It’s worth considering whether you can afford to increase your contribution rate, because the more you contribute now, the bigger the impact on your savings when you retire.

5. Build your investment knowledge

When it comes to investing, knowledge is power. It’s worth taking the time to find out about investment markets and how they work. A good place to start is our ‘Tips and tools’ page, which has useful information to help you get the best from your investments.

Important information

This article has been prepared by ANZ New Zealand Investments Limited for information purposes and is not to be construed as advice. We recommend seeking financial advice about your situation and goals. To talk to one of our team at ANZ, please call 0800 736 034, or for more information about ANZ’s financial advice service or to view our financial advice provider disclosure statement see anz.co.nz/fapdisclosure