Your KiwiSaver probably needs more attention than you think
Let’s be honest most of us don’t spend much time thinking about our KiwiSaver.
You sign up, choose a fund, money comes out of your pay, and then you get on with life.
But your KiwiSaver could end up being one of the biggest assets you own. So leaving it unchecked for 10, 20 or 30 years probably isn’t the best strategy.
Here are a few things worth checking.
Are you investing for the long term?
Your KiwiSaver isn’t money you’ll need tomorrow. For most people, it’s money that could be invested for decades.
That means the fund you’re in matters.
If you’re younger and have a long way to go before retirement, being overly cautious could mean missing out on potential growth. On the other hand, if retirement is getting closer, your priorities may be different.
There’s no one fund that’s right for everyone it comes down to your timeframe, goals and how comfortable you are with investment ups and downs.
What happens when money gets tight?
When the cost of living goes up, KiwiSaver contributions can be one of the first things people think about stopping.
Sometimes that’s necessary.
But before switching them off completely, consider whether reducing your contribution might be a better option. Keeping something going means you’re still building your balance and potentially receiving employer and Government contributions if you qualify.
Small amounts can make a surprisingly big difference when they’re invested for a long time.
Don't leave free money on the table
If you’re eligible for the Government contribution, make sure you’re getting as much of it as you can.
You generally need to contribute enough of your own money during the year to receive the maximum Government contribution.
It’s one of those things that’s easy to overlook — but over a working lifetime, those contributions can add up.
Buying your first home? Don't forget what comes next
For many people, KiwiSaver plays a big role in getting their first home.
Once you've bought the house, though, KiwiSaver can quickly disappear from the radar.
That’s actually a great time to review it.
You’ve gone from saving for a house deposit to building wealth for retirement, so your investment strategy may need to change too.
Your life probably isn't the same as when you joined
Think about where you were when you first joined KiwiSaver.
Your income might be different. You might have a mortgage, a family, a business or completely different plans for the future.
So why would your KiwiSaver settings necessarily stay exactly the same?
You don’t need to obsess over it or change things every few months. A simple annual check-in can make sure everything is still heading in the right direction.
The bottom line
KiwiSaver doesn’t need to be complicated.
You just need to make sure the basics are right:
The right fund.
The right contribution rate.
The right strategy for your stage of life.
Then give it time.
Because when you combine regular contributions with long-term investment growth, the results can be pretty powerful.
Want to know if your KiwiSaver is on track?
We can take a look at where you’re currently at and show you what your options could look like based on your income, goals and retirement plans.
Get your complimentary KiwiSaver review and find out whether your current strategy is doing enough for your future.
