How do your KiwiSaver savings stack up?
18 January 2016 / Published in Your MoneyThe earlier you start planning for retirement, the more comfortable those years could be. So starting to plan now (maybe even before you think you need to) could really make a big difference for you later on in life.
Whether you want to travel the world when you retire, buy a beach house or be free to live the lifestyle you want, it’s going to take some planning and saving now.
If you’re close to retirement and have only been saving a little, it can feel like it’s too late to save. While it is often better to start as early as possible, the age old saying “better late than never” certainly applies here.
If you’re already saving with KiwiSaver, then you’re on the right track. But the fact is, for some, just having KiwiSaver isn’t enough anymore. Most of us dream of the retirement lifestyle we would like, but will you have enough to make this dream come true?
It’s tricky to work out how much you’ll need in retirement and it’s almost impossible to guess what your income will be. But we’ve created a new calculator that projects the KiwiSaver savings you could have to draw on when retirement calls. It will also show you, based on your current savings rate, how long your savings will last you in retirement. It can also show you how slight adjustments now could affect your future savings balance.
What if you’re not on-track?
If the amount you need to save looks daunting, don’t panic. There are a few things you can consider to try get your savings on track:
- Change your fund. Many people are in funds that don’t suit the type of investor they are, or the timeframe they’re investing for. Are you in a fund that best suits you? Click here to read about changing your fund.
- Start contributing regularly. Try the ‘save a little, often’ approach. Even just a small amount could help maximise your KiwiSaver savings at retirement. If you’re eligible, contributing as little as $20 a week over 12 months to 30 June could get you an extra $521.43 from the Government.
- Increase your pay day contributions. Uplift from 3% to 4% or 8%. Putting more of your salary or wages away could make a noticeable difference in your KiwiSaver savings, and your ability to afford the retirement lifestyle you want.
To see if you're on-track for the retirement you want, try our new KiwiSaver calculator.
