KiwiSaver, in the first instance, is about getting started into one if you are not already. The earlier you can start saving for your retirement, the better. You’ll be in a much stronger financial position if you contribute regular amounts for longer, even if it’s just a tiny amount each time. But what if you are in one already but not getting the personal touch you should be receiving and not being made aware of some of the extra benefits that go with them. For example, exclusive to Booster KiwiSaver. Members are offered free accidental death cover of up to $50,000. Let’s talk a bit more about KiwiSaver so you can see why it may be beneficial to get help from an adviser.
Why get KiwiSaver?
KiwiSaver was set up in 2007 as a retirement tool so that when you stop work at 65, you have some additional money to top up your government pension. It is still a relatively young scheme. It was introduced because the government realised that government superannuation alone would not be enough to keep people financially supported in retirement. If we were encouraged to just put a small portion of our take-home pay away into a KiwiSaver account every single month for our entire working life, then over time, it would build up to a substantial amount with the help of time and compounding interest. Left to our own devices, too many of us never think ahead to retirement, and KiwiSaver can make us more prepared. Once we hit the big 65, this money will be a massive boost to our otherwise potentially dire standard of living. If you were 65 and had no choice but to retire today, could you live on that alone if you had no other savings?
Who can join?
To be able to join KiwiSaver, you don’t have to be employed, but you do have to be: A New Zealand citizen, or entitled to live in New Zealand indefinitely and living or normally living in New Zealand. Find out more about who can and can’t join KiwiSaver on the Inland Revenue website here.
The question of signing up to KiwiSaver is less ‘why’ and more ‘why not?’ because of the benefits it offers. If you are interested in finding out more or want to get your KiwiSaver setup, contact us to find out more.