KiwiSaver helps many New Zealanders realise their dream of owning a first home – and for most, KiwiSaver will make the difference between a comfortable retirement or one reliant solely on the pension or family members. It’s essential to help people understand how to make the most out of KiwiSaver and understand its importance at a young age but also in older clients whom can still benefit. Let’s break down some common KiwiSaver myths.
Does the government-run KiwiSaver?
It is not run by the government. Despite KiwiSaver being established by the government, banks and other private companies offer individual schemes. Booster, for example, is one KiwiSaver scheme provider you can choose.
Is KiwiSaver a savings account?
You can add money to KiwiSaver, so it’s more like an investment account. The provider of your KiwiSaver scheme invests your money on your behalf. Invested money continues to earn until you withdraw it for your first home or retirement. Choosing the right fund depends on your risk profile and savings goals. It is our role, as our clients adviser, to assist you in determining your risk profile (which can change hence why we review this and all your covers we can support you with) and which fund you should invest in.
Are there any other benefits to joining KiwiSaver?
Of course, there is! You get both annual government contributions and employer contributions.
- If you’re aged between 18-65 and making contributions from your pay, then your employer also must contribute a minimum of 3% to your KiwiSaver.
- You can join When you turn 18, For every dollar you put into KiwiSaver, the government will also contribute 50 cents, up to a maximum of $521.43 each year.
- You can join KiwiSaver earlier that 16 if you want, simply see if for the options.
When can I access my KiwiSaver savings?
You can access your KiwiSaver savings for retirement once you turn 65. You can also withdraw your savings to help purchase your first home. You may also be able to withdraw your savings early under certain circumstances, such as significant financial hardship or if you’re seriously ill.
Got more questions? Contact us. Our advisers are KiwiSaver experts and are here to answer any questions you may have. If you need to review your KiwiSaver to ensure you are in the correct fund we can help you with that. Start saving now so you can invest in your future.