Fisher Funds has some top tips around what you need to consider for your KiwiSaver account at each life stage.
While KiwiSaver is a long-term investment, there are some key milestones along the way where decisions need to be made to ensure you get the most out of your account.
The first milestone is right at the beginning of your KiwiSaver journey, when you’re starting your first job and signing up to KiwiSaver as a new member. This is when you can choose the type of fund you invest in and set your contributions, and it’s important to spend the time getting it right from the start.
“People often tell me they wished they’d spent a bit more time getting it right in those early days,” says Guy Sloan, Wealth Advice Lead at Fisher Funds.
“There are some really easy steps to take at the start, to get that balance working for you over time. Take your time to look at your KiwiSaver account, talk to your provider, and check that it’s set for the future, that you choose the right fund and the right level of contributions.
“An extra dollar or two in the early years is going to have a big impact in the long-term.”
Sloan also recommends checking with your employer on their contributions, as employers can sometimes offer additional employer contributions if you increase your employee contributions.
First home purchase
The next milestone for many people will be a first home purchase and using their KiwiSaver money towards a deposit.
“If you’re just getting started on saving for a deposit, check your KiwiSaver balance and make sure you’re on track for the amount you might need to help with your deposit for that first home,” says Sloan.
“Don’t leave accessing your KiwiSaver money until the last minute. Get prepared early and plan ahead – check with your KiwiSaver provider to talk through your plan and understand the steps you need to take to use your KiwiSaver money. The last thing you want to be doing is waiting for those funds to turn up with your lawyer on settlement day.”
Retirement
The final KiwiSaver milestone is retirement – the ‘headline act’ of KiwiSaver – and it’s just as important to check in on your KiwiSaver at this stage as it is at the start.
“If you’re approaching retirement, remember that KiwiSaver can be a great option not just to get you there, but also to help you right through your retirement,” says Sloan.
“Take a moment to think about what you’re trying to do with your KiwiSaver money and how you’re tracking towards retirement. It’s never a bad time to check on your fund choice and make sure it’s right for your circumstances.
“Your KiwiSaver provider will be able to give you information on flexible drawdown options and, if you need it, some advice on what you can do as you move through retirement.”
Join over 500,000 ambitious Kiwis with Fisher Funds, New Zealand’s most trusted KiwiSaver provider*. Just visit www.fisherfunds.co.nz/kiwisaver
Fisher Funds Management Limited is the issuer of the Fisher Funds KiwiSaver Scheme and Fisher Funds TWO KiwiSaver Scheme. Fisher Funds Wealth Limited is the issuer and manager of the Fisher Funds KiwiSaver Plan. Product Disclosure Statements for the schemes are available on our website.
*Reader’s Digest Most Trusted Brand for KiwiSaver (as voted by New Zealanders) 2021, 2022, 2023, 2024.
This content was sponsored by Fisher Funds.