Wondering why ASB has been in touch? You may have been automatically enrolled in the ASB KiwiSaver Scheme when you started a new job or told your employer you wanted to join KiwiSaver.
While retirement might feel like it’s a long time away, an early start to saving with KiwiSaver could pay off sooner than you’d think.
Take a look at this short video to see how KiwiSaver can work for you.
It’s good to have a clear idea of how much you’d like to save. Use our KiwiSaver calculator to see how long your savings may last in retirement. Once you’ve got a goal in mind, here’s a few ways to keep your KiwiSaver savings on track.
If you haven’t chosen an ASB KiwiSaver Scheme fund, we’ll automatically place you in the Conservative Fund. This is a lower risk fund with lower potential returns. This may or may not be right for you, so it is important to check you are in the right fund.
To find a fund that might suit you, use our Help me choose tool. Remember to review your fund choice regularly - especially if your circumstances change.
If you’re currently contributing the 3% minimum, increasing your contribution rate to 4% or 8% of your (before tax) wage or salary is one way to speed up your savings. Use our KiwiSaver calculator to see the difference increasing your rate might make.
Try the 'save a little, often' approach. Even just a small amount could make a difference when you reach retirement. FastNet Classic internet banking enables you to set up an automatic payment or make a lump-sum contribution at any time. You can also make payments using the ASB Mobile app and the online services of other banks (search ‘ASB KiwiSaver’ in bill payments).
It’s important to get your Prescribed Investor Rate (PIR) right. Your PIR defines the amount of tax you’ll pay on your KiwiSaver investment income – if it’s too high, you’ll be paying tax you won’t be able to claim back; if it’s too low, you’ll need to file a tax return and pay the outstanding amount.
Make sure you get the $521.43 annual Government contribution (also known as member tax credits). All you need to do to get the full amount, is to contribute at least $1,042.86 between 1 July and 30 June each year and meet the eligibility criteria.
Usually, you’ll be able to receive the annual Government contribution from the age of 18 up until you’re eligible to make a KiwiSaver retirement withdrawal - as long as you make contributions and live mainly in New Zealand. If you join KiwiSaver, turn 18 or become eligible for retirement withdrawals part way through the year, you’ll get an annual Government contribution proportional to the time you’ve been eligible.
Interests in the ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides Scheme administration and distribution services. No person guarantees interests in the Scheme. Interests in the Scheme are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement available from this website and the register of offers of financial products at www.business.govt.nz/disclose (search for ASB KiwiSaver Scheme).