Is KiwiSaver right for your needs? What makes it worth your while, financially? If you’re pondering these questions for the first time, or need a ‘refresher’ of the benefits that KiwiSaver brings to the table, here’s a helpful guide from our SHARE financial advisers.

There’s $521.43 up for grabs, every year

Did you know that every year, for each dollar you contribute into your KiwiSaver, the Government will add another 50 cents to your account – up to an annual maximum of $521.43?

Designed to accelerate your retirement savings, the annual Government contribution is one of most interesting KiwiSaver features. And the extra money you get, coupled with compounding interest, can add up to a significant gain over time.

To receive the maximum Government contribution of $521.43, you need to contribute at least $1,042.86 yourself (excluding employer’s contributions) between 1 July to 30 June each year. By the end of August, you’ll have the money directly in your account.

Like to learn more? Please get in touch with a SHARE financial adviser; we can help you understand what amount you’re entitled to, and work out if you need to top up your account before the end of June to get the full amount.

It’s an easy, affordable way to save for retirement

Since its launch, KiwiSaver has been helping millions of Kiwis save for their retirement years in a simple, fuss-free way.

Unless you withdraw your money to buy your first home or (under strict conditions) to recover from significant financial hardship, you cannot access your KiwiSaver funds until you’re 65. Left untouched, and thanks to the effect of compound interest, your retirement savings have the best opportunity of growing over time.

It may help you buy your first home

Many KiwiSaver members are taking advantage of the scheme’s first-home features to get on the ladder. If you have been in KiwiSaver for at least three years, you can withdraw most of your KiwiSaver money (except for $1,000) to help with the purchase of your first home.

Also, depending on your circumstances, the type of property you’re looking to buy (existing or brand-new), and its value, you may be able to access first-home grants to supplement your property deposit. There are specific rules around these, so make sure you know what’s involved before relying on this boost.

Like to know what’s involved, what you may be entitled to, and what could be the impact on your long-term retirement strategy? Our SHARE advisers are here to answer your questions.

The importance of being proactive (and getting advice)

KiwiSaver may have been your first point of contact with the investment world. And since you began using it, you might have started thinking differently about your finances and how to put your money to work. 

As it turns out, this same goal has been in the minds of many Kiwis of late. According to a recent FMA survey, more and more New Zealanders are turning their heads to investment and financial planning, and the vast majority of KiwiSaver members (80 per cent) are confident the scheme will deliver for them.

This confidence has solid grounds. While there’s no denying that investors have been on a rocky ride in the past few months, share markets have pulled a remarkable recovery since their lows in mid-March 2020. Whatever your KiwiSaver goals might be, the key thing is to keep them top-of-mind and take proactive steps along the way – like choosing the most appropriate fund for your investment horizon and risk profile.

Once again, our SHARE advisers can help you make informed decisions, assess your goals and plan forward.

Are you putting all your eggs in one basket?

Depending on your circumstances, KiwiSaver may not be enough to fund the retirement lifestyle you’re envisioning. By diversifying your portfolio and choosing a combination of different investment vehicles, you may set yourself up for a more secure future.

Get in touch with SHARE. Our advisers like to take the time to understand your needs, discuss your goals, and work with you to devise a comprehensive plan to get you there. Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.