Your KiwiSaver
What is KiwiSaver?
KiwiSaver is the retirement saving scheme run by the NZ government. If you are an NZ citizen or a permanent resident, you are eligible to enrol. Making sure that you have some money set aside for your retirement is so important, and KiwiSaver is a way of ensuring that you have more than just the pension to live on when that time comes.
There are multiple benefits to belonging to KiwiSaver, such as free money each year you contribute and financial assistance to help with the purchase of your first home*.
*Conditions apply
How does it work?
*conditions apply
If you contribute a minimum of $1,042.86 in a year, the government will top up your account with $521.43. That’s a free 50 cents for every dollar that you contribute up to that amount.
There are different types of funds, and depending on how you feel about financial risk, one will suit you better than another. We can help you understand the risks and returns to enable you to make smart decisions about where to invest and the type of fund that best suits your situation.
Understanding your KiwiSaver can add thousands to the funds you have available at retirement. The choices you need to make are which provider to use and which fund to invest in.
How does it work?
*conditions apply
If you contribute a minimum of $1,042.86 in a year, the government will top up your account with $521.43. That’s a free 50 cents for every dollar that you contribute up to that amount.
There are different types of funds, and depending on how you feel about financial risk, one will suit you better than another. We can help you understand the risks and returns to enable you to make smart decisions about where to invest and the type of fund that best suits your situation.
Understanding your KiwiSaver can add thousands to the funds you have available at retirement. The choices you need to make are which provider to use and which fund to invest in.
KiwiSaver Providers
There are more than twenty different KiwiSaver providers, who facilitate multiple funds.
Long-term investments and/or KiwiSaver are the core business for some providers. long-term investment is a specialty area and for some higher risk /return funds some KiwiSaver providers use specialist fund managers.
Choosing your KiwiSaver provider is a matter of you deciding which provider you like the look of. Some people may choose their fund provider because of their ethical investing strategies, others for the fund returns, or the ability to see their KiwiSaver with their banking.
If you did not actively choose where your KiwiSaver is invested when you enrolled, you will have been randomly put into one of the nine default KiwiSaver provider schemes. Changing your provider is easy, talk to us and we can help.
Types of funds
Depending on where you are in your journey to retirement, different fund types will suit your situation.
The typical funds are Conservative, Balanced and Growth. Fund providers have their own language and many more funds than just three. You can go with their defaults or you can customise to suit your actual needs. Understanding the different considerations for what fund you should consider from a risk and return perspective based on your need to access the funds is a critical factor in your retirement fund choice.
Conservative funds are good if you plan on using your KiwiSaver savings fairly soon, for example if you are planning to retire or buy a first home. These funds are low risk, so you’ll have a stable KiwiSaver balance and you can be confident your funds will be there when you need them.
Balanced funds have slightly more risk than conservative; they invest in a combination of income and growth assets, aiming to provide moderate to high returns. This is a good option if you want to maximise your returns, but are worried about market fluctuations and don’t sleep well with high risk investments.
Growth funds are great for those of us who don’t tend to worry about account balances! Your balance will go up and down more than in the other funds, with the potential for a much greater increase… but with the risk that goes alongside that! If you aren’t planning on accessing your KiwiSaver savings for many years, and the idea of a high growth account gives you a thrill (and doesn’t send you into a panic), this is a great option.
Fund fees are charged by each KiwiSaver provider, and they all have their own calculations on how these are worked out. Some providers have a monthly admin fee for managing your KiwiSaver. Typically, higher-risk funds will have higher fees.
Fund returns can be positive or negative depending on the market, and the higher the risk the greater the fluctuation. The lower the risk the smoother the ride, so conservative fund gains won’t be so great… but there’s also little chance of a significant drop in your funds. Higher-risk funds have more potential to dramatically change, in either direction! Various factors can affect returns – such as pandemics, war, and financial market crashes.
Types of funds
Depending on where you are in your journey to retirement, different fund types will suit your situation.
The typical funds are Conservative, Balanced and Growth. Fund providers have their own language and many more funds than just three. You can go with their defaults or you can customise to suit your actual needs. Understanding the different considerations for what fund you should consider from a risk and return perspective based on your need to access the funds is a critical factor in your retirement fund choice.
Conservative funds are good if you plan on using your KiwiSaver savings fairly soon, for example if you are planning to retire or buy a first home. These funds are low risk, so you’ll have a stable KiwiSaver balance and you can be confident your funds will be there when you need them.
Balanced funds have slightly more risk than conservative; they invest in a combination of income and growth assets, aiming to provide moderate to high returns. This is a good option if you want to maximise your returns, but are worried about market fluctuations and don’t sleep well with high risk investments.
Growth funds are great for those of us who don’t tend to worry about account balances! Your balance will go up and down more than in the other funds, with the potential for a much greater increase… but with the risk that goes alongside that! If you aren’t planning on accessing your KiwiSaver savings for many years, and the idea of a high growth account gives you a thrill (and doesn’t send you into a panic), this is a great option.
Fund fees are charged by each KiwiSaver provider, and they all have their own calculations on how these are worked out. Some providers have a monthly admin fee for managing your KiwiSaver. Typically, higher-risk funds will have higher fees.
Fund returns can be positive or negative depending on the market, and the higher the risk the greater the fluctuation. The lower the risk the smoother the ride, so conservative fund gains won’t be so great… but there’s also little chance of a significant drop in your funds. Higher-risk funds have more potential to dramatically change, in either direction! Various factors can affect returns – such as pandemics, war, and financial market crashes.
Accessing your funds
Of course at any stage after 65, you can withdraw the funds in one lump sum (not recommended) , or as a weekly or monthly payment to supplement your pension.
KiwiSaver Tips
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