KiwiSaver is a NZ Government initiative to encourage folk to save for their retirement. It is a great concept but not fully understood by many. Many people have ended up in a default scheme and are probably missing out on the advantages of being in the right scheme. Regular Savings provides an efficient strategy to save into Growth Funds which, although volatile, have the potential to out perform Conservative Funds over time.
A Financial Health Check will put your KiwiSaver into context.
Whatever KiwiSaver selection is made it should be done in the wider context of your total financial position and your investor comfort zone. We recommend everyone should complete a Financial Health Check which includes an Investor Profiling exercise. If all your assets where in fixed interest investments then inflation may be a risk factor. If all your assets are in Growth Investments you may be over exposed to market risks.
There are a range of membership benefits to encourage you to get saving. They include a $1,000 kick-start, regular contributions from your employer and an annual member tax credit paid by the Government. Some people may also be eligible for help with the deposit on their first home.
KiwiSaver schemes are managed by private sector companies called KiwiSaver providers. You can choose which KiwiSaver provider to invest your money with.
Explore KiwiSaver here
The IRD provides a great overview and resource:
KiwiSaver is not guaranteed by the Government. This means you make your investment choices in a KiwiSaver scheme at your own risk so seeking advice makes good sense.