You can get the full government contribution to your KiwiSaver each year with just $20 a week. For every dollar you put in, the government will match it with 50 cents, up to a maximum of $521 for you. That is every year, to age 65, whether you are working or not.
And even if you can only put in $10 or $5, the government will match that in the same way. It is the closest thing to free money that we know of! (Source, sorted.org.nz)
*Subject to Government regulation and current law.
Call Dina to check that you’re making the most of the contribution
The government contribution to your KiwiSaver is calculated every year from the period of 1 July through to 30 June.
If you’d like to check where you’re at with your Kiwisaver for this year’s payment, Dina is here to help; give her a call on 09 307 9300.
Weirdly, we all seem to use January to take stock of our lives, particularly our physical and mental wellbeing. However, our financial health also needs the same level of care, planning and goal setting.
We’ve found KiwiSaver is often neglected when personal finances are being reviewed. While it doesn’t need regular attention, it shouldn’t be set aside and forgotten.
It’s common to adopt a passive attitude towards KiwiSaver, letting it idle in the background rather than viewing it as a ‘real’ investment. However, KiwiSaver’s an important component of your personal finances which should morph, change and grow as you journey through life.
A review of KiwiSaver should examine:
— the provider
— the type of fund
— the contribution rate
— your current life stage and risk profile.
There are currently over 28 KiwiSaver providers. You can change your provider at any time by applying directly to the provider of the new scheme you wish to join. Transfer fees may apply but it’s uncommon.
Choosing a fund is an important personal decision. KiwiSaver’s a journey: the fund you are in should change to reflect shifts in your goals, personal circumstances, and attitude toward risk.
Check whether you are still in the default fund — the one picked for you at random when you started your KiwiSaver journey. Random allocation might mean the fund is not meeting your personal needs and goals. Young people often start their KiwiSaver journey before they fully understand the scheme and frequently leave it untouched.
Funds range from low to high risk, often classified as:
— defensive
— conservative
— moderate
— balanced
— growth.
Depending on your provider, it may be possible to select more than one type of fund. Also, be aware that the classification of funds may differ between providers. One provider’s conservative fund might be another’s balanced fund. It’s important to take time to read each fund’s description so that you can accurately compare what is being offered by different providers.
KiwiSaver’s a personal thing so there’s no ‘right’ or ‘wrong’ contribution rate. However, setting a KiwiSaver goal can help you plan and choose the rate that will best help you get where you want to go. For example, if your goal is retirement-focused, your aim may be to receive a yearly income of $40, 000.00 from the age of 65.
The government contribution is a worthy incentive to contribute to your KiwiSaver between 1 July and 30 June each year. Depending on your personal situation, you may wish to increase your contributions to ensure you obtain the full benefit as this will have a real impact on your retirement savings.
Call Dina to get personal advice on your circumstance: 09 307 9300.