KiwiSaver is an investment scheme that can help you save for retirement, and be used to help you buy your first home, as well as in certain cases - be withdrawn for financial hardship. Your KiwiSaver balance is made up of contributions from your salary, from your employer, and from the government.
Who can join KiwiSaver?
Any New Zealand Citizen or Permanent Resident can join KiwiSaver. You cannot join KiwiSaver if you have a temporary, visitor, work or student visa.
The easiest way to join KiwiSaver is to sign up on a providers website. Do your research, find the right KiwiSaver provider for you and sign up directly with them.
How easy is it to move KiwiSaver providers?
Switching KiwiSaver providers is really easy, your new provider will do all the work for you. All you need to do is sign up on the new providers website (or talk to your favourite Advance mortgage solutions adviser) and your new provider will get in touch wtih your existing provider and sort out the transfer for you.
So there is really no excuse for getting your KiwiSaver sorted.
Is KiwiSaver right for me?
Joining KiwiSaver seems like a good idea – but what are the main reasons to sign up?
- Employers are required to match your contributions (to a 3% cap) and the Government will give you up to $521 per year provided you make a minimum contribution of $1,042. So if you are an employee and over 18 years old, you are likely to qualify for the free money by investing in your KiwiSaver plan.
- Your savings are deducted directly from your salary, so you don't even notice the savings each and every week
- It gets locked away until you turn 65 (unless using it for your first home or financial hardship), so you won't be tempted to spend it and it can be left to grow!
You’ll earn money on your contributions
Many people think your KiwiSaver balance is just made up of what you, your employer and the government put in. But your KiwiSaver provider puts your money to work and keeps it working, even on the weekends with your contributions continuing to be invested as they roll in.
Your retirement will be more comfortable
The retirement landscape is changing in New Zealand. Living expenses have increased and not everyone will have a mortgage-free home in retirement, like many of our parents. New Zealand Superannuation might not give you the lifestyle you’d like.
It’s likely you’ll need extra money to keep you going through your retirement, and KiwiSaver money becomes a large part of that.
Even if you’re not going to be retiring for quite a few years, it’s worth thinking about keeping up your KiwiSaver contributions. It’s also a great idea to ask yourself if you can afford to increase them.
It can help you get into your own home
You can use your KiwiSaver money as a deposit for your first home (as long as you meet a few requirements). Many young Kiwis are using their KiwiSaver balance as a part of their deposit.
Through KiwiSaver, you may also be eligible for extra money from the government to help you into your first home.
Like to get started?
Or to check up on your existing KiwiSaver plan?
We're here to help. Book a KiwiSaver catch up with the team at Advance mortgage solutions. Time well spent to start your KiwiSaver journey or to check in on your KiwiSaver plan – where you are today, where you want to be, and how you're tracking.