Even if you’ve been in KiwiSaver from the start, it’s still good to be reminded of these four simple, but powerful steps you can all take to help make the most of KiwiSaver.
- Get started
- Be in the right fund
- Maximise the benefits
- Keep checking
That may sound obvious, but you need to be in it to grow your savings, and you have to keep contributing.
Be in the right fund
Typical fund options include cash, conservative, moderate, balanced and growth.
Have you got the right assets that are really going to grow your balance as much as possible, given your savings goal and amount of time until you need to access your money?
ASB’s latest KiwiSaver survey reveals some 62% of people surveyed don’t think they are saving enough for retirement. With this being the case, understanding how much you need to save and what fund to be in to help meet that goal, is critical. Online tools and calculators can help explore what fund could be appropriate for you.
Using an online tool such as our Help Me Choose tool or the ASB KiwiSaver Explorer tool, available in branch, can help you understand the fund that’s most important for you. It can also help you understand how the different asset classes for each fund could perform.
Maximise the benefits
KiwiSaver data shows nearly 131,000* KiwiSaver members are currently on a contributions holiday, which means they are not receiving any employer contributions or the annual Government contribution (MTC) of $521.43 they could be eligible for.
To be eligible for the full MTC, members must contribute at least $1,042.86 between 1 July and 30 June each year and be 18 years or older, not yet eligible for retirement withdrawals, and be living mainly in New Zealand
Make sure these benefits are being maximised - It’s there for you, why wouldn’t you grab it?
* KiwiSaver Monthly Statistics (as at 31 May 2017), Inland Revenue
This step is often forgotten, but it’s important you continue to check steps two and three for the rest of your employment life. Even after that, investment decisions don’t stop when you stop work – you will continue to make fund choices through your retirement as well.
To make checking your KiwiSaver investment easier, ensure you’re set up online. With ASB you can track and manage your KiwiSaver account through FastNet Classic.
Look out for more in our 10 Years of KiwiSaver blog series.