What is KiwiSaver and how does it work?
A quick Google search defines KiwiSaver as a ‘New Zealand savings scheme’, however it is so much more than that. KiwiSaver gives every New Zealander the opportunity to invest money into a range of financial products, allowing them the chance to build not only their wealth, but also their understanding around investments and retirement planning.
One of the biggest issues around KiwiSaver is its own name, implying that it’s just another way to save money… What we have found from talking to friends, family, and colleagues is that they see it as just that, a place where a portion of their hard-earned cash goes, without giving it a second thought.
Some quick facts about KiwiSaver:
It’s a voluntary investment scheme set up by the Government
You can only withdraw from your KiwiSaver for…
first-home deposit
reaching the age of 65
financial hardship, moving overseas permanently, terminal illness or death
You can choose to contribute between 3% and 10% of your gross (before tax) pay
Your employer must match your contributions to a minimum of 3%
The Government assists you by contributing $521.43 each year (as long as you meet certain criteria)
You choose a KiwiSaver scheme to invest your money with
You also choose the fund type (i.e. growth, conservative, balanced etc.) which is offered by your KiwiSaver provider
This is just an overview of KiwiSaver, and if you’d like to grow your understanding, take a look at our other blog posts to learn more about KiwiSaver and how you can make it work for you.
Is my KiwiSaver fund right for me?
If you want to know if you’re KiwiSaver fund is both being maximised for returns and suitable for your personal situation, follow the link below to our online fact find. The fact find only takes 5 minutes to complete, and once you have finished we will provide you with a free no-obligation KiwiSaver recommendation.
Compound Wealth is a KiwiSaver, Retirement and Private Wealth Financial Advice Firm based in Mount Maunganui, Bay of Plenty.