Making KiwiSaver work for you
KiwiSaver is New Zealand's largest retirement vehicle, yet in New Zealand only 18% of Kiwi's receive Financial Advice, so how well is your KiwiSaver funds really working for you?
With over 380,000 Kiwi's enrolled in a default fund there is plenty of work to do improving Kiwi relationships with there funds, after all we all want and deserve to retire comfortably.
In order to help Kiwi's understand KiwiSaver and its features better, we will be posting a series of these designed to help you achieve more financially.
So, is your current KiwiSaver right for you?
This can be a big question, firstly, do you know where your funds are and what KiwiSaver you are invested in? If you are one of the group who are currently sitting in a default fund you may not know where your funds are or what you are invested in. This can be costing you thousands in potential returns when it comes time to retire.
Alternatively, you may have switched to your Bank when you opened an account or took out a home loan and haven't done much since.
If you don't know where your funds are, you can find out through the IRD here, once you know what Fund you are invested in, its time to consider how your money is invested.
One of the main reasons Kiwi's have said they don't receive Financial advice is that they don't believe they have a large enough balance. But a plant wont grow unless you water it, right? So understanding how your funds are invested even when your balances are small can mean the difference in hundreds of thousands of dollars over a lifespan.
Are you invested in a way that is right for your age, income and life stages?
Understanding the different risk levels, how your money is managed by the KiwiSaver provider and the likely returns we will cover in-depth in the next post, but for now consider what fund you are invested in, and take stock of your current position, will you need funds for a house purchase soon, or how many years do you have until retirement? Understanding this helps to select the right risk category for your investment, the higher the risk level, the higher the likely returns over the long term.
Generate KiwiSaver have a handy tool that lets you compare the risk levels and your position so you can see the real difference in your balance when you retire.
You can see this here
In our next post, we will take a look at what each risk level means and its effects on your Balance.
Tribe Financial provides Free KiwiSaver information
to help you achieve more financially. If you would like to speak to someone about your Kiwisaver you can contact us.
Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. Publicly available Disclosure information can be found here.