30 Apr KiwiSaver: How You Can Maximize Your Investment

KiwiSaver is considered a huge success story in NZ since it introduced a few years ago. Over two million NZs have subscribed to KiwiSaver which is a massive success and has completely surpassed and smashed all government targets for enrollments.

This NZ scheme is also one of the best superannuation retirement schemes available. By joining you get an instant free $1000 kick start and also free government contribution of $521 if you contribute a minimum of $1042 for the year.

Although its locked in till age 65 KiwiSaver is still quite flexible compared to other schemes around the world. For example in KiwiSaver you can choose to opt out when you start a new job between two and eight weeks.

You can also choose how much you wish to contribute and can have contribution holidays. So at this stage KiwiSaver is very flexible and the maximum contribution levels for an employer is only 3% compared to 9% is say Australia is very low but as a nation we need to first get use to having a locked in superannuation scheme and regular contributing to it.

I believe once NZs get use to having a compulsory savings scheme and understand they need to become more responsible for their own retirement planning then it will be prudent to start to stricken up the scheme and its rules.

I believe It should become compulsory for all NZ employed to be in a compulsory superannuation scheme and contributing. Also both the employees and employers contributions need to keep steadily rising. Even in Australia today they have roughly just under two trillion dollars in superannuation and its compulsory to contribute 9% of your wage into super yet still most Australians still don’t have enough built up retirement funds to retire comfortably.

The government still has to top a large proportion of retirees pensions up. Its fair to say that here in NZ our retirement income is also paid from the governments pension fund but due to a rapid aging population this is not sustainable. Today for a single person the pension payment is only $374 and for a married couple its $576. Really this is barely enough to cover groceries, power and a bit of petrol.

If you work out ideally want you would love to live on in retirement you should start by at least halving your income now. So if your on $60,000 a year you would want to live on $30,000 in retirement assuming all your debts are paid off.

You will also receive the pension so now we need say an extra $20,000. You would need a lump sum of $400,000 returning say 5% will get you your $20,000. So how are you going to accumulate $400,000. KiwiSaver is a great start to helping you.

Have more pressing questions about KiwiSaver that you want answered? Call 027 446 4143 right now or click here now to speak to a specialist that will help you maximize your returns and benefits of your KiwiSaver.

No Comments

Sorry, the comment form is closed at this time.