Your KiwiSaver plan is something that you may well have for most of your life. But it isn’t something that you can set and forget.

As you grow and change, and your circumstances evolve, it is important to check in on your KiwiSaver settings.

Here are a few things to think about.

Key times for a check-up

It’s a good idea to check your KiwiSaver plan regularly, just as a matter of course. But there are some key points in life where it may make sense to take an even deeper look.

Starting out: When you first join KiwiSaver, it may be a good time to look at the options available to you and make sure that you’ve chosen an appropriate fund and provider – and have not just gone with a default option.

Partnership: If you’re settling down with a partner, you may have financial goals that you want to work towards together. This is a good time to see whether your KiwiSaver plan is set up for them. Are you planning to buy a house before long? That might be time to tweak your risk exposure.

Having a baby: If you’re taking time out of the workforce to have a child, don’t forget about your KiwiSaver plan. You may have benefits from your employer, such as contributions while you are on leave, and if you continue with KiwiSaver contributions while receiving the paid parental leave payments, the Government will make a 3 percent employer contribution. Talking to your partner about ways you can ensure your KiwiSaver plan isn’t left behind may be important.

Pay rises or new jobs: If you’re shifting to a new role that pays more, or you get a pay rise in your current position, you might think about whether it’s time to increase your contributions to your retirement savings. If your pay increases push you into a new tax bracket, you may need to change the prescribed investor rate (PIR) that your KiwiSaver provider is using for you.

Why it matters

When your goals change, your risk exposure may need to as well.

If you were previously saving with retirement in mind, and that’s a long time away, you might have chosen to take more risk to be able to achieve higher returns.

But if you decide that a first home is something you want to strive for instead, it could make sense to dial down your risk as you get closer to needing the money. Some people move their money into a more conservative fund when the time comes so that they can be sure how much they have for a deposit.

On the other side. once you’re in your new home, you might decide to increase your risk exposure again when you get back on track for retirement saving.

Your contributions may need to increase

When you’re younger, time is a great asset to amplify your returns, so even smaller contributions can have a significant benefit when it comes to your final savings balance.

But as you get older, you may choose to increase your contributions to boost your final outcome. Every so often, it may be a good idea to check whether you are on track for the sort of lump sum that you want for retirement.

When retirement is still a hazy thought in the distant future, it can be hard to solidify your ideas about what you might need when you get there. But as you get closer, these sorts of decisions become easier to judge.

Approaching retirement

As you get nearer retirement, you have another opportunity to check that your settings are correct. Many people choose not to completely dial their risk down at 65, opting instead to keep their investments going to help their money last as long as they do. This can be a great point to get expert advice on for an investment plan to take you into retirement and beyond.

Time to talk?

We’re here to help you make decisions about KiwiSaver, whether they’re big or small. If it’s time to check in on your settings, or just make sure you’re still on track, drop us a line. Our expert team will be able to guide you on ways to make sure your KiwiSaver plan is appropriately structured to help you towards your goals.

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 developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.