For most employed New Zealanders, KiwiSaver is one of the best ways to save for retirement.
You and your employer each make contributions to your account, topped up by the Government member tax credit of up to $521 a year. You can choose how much of your pay you contribute – 3 per cent, 4 per cent, 6 per cent, 8 per cent or 10 per cent - and this goes automatically every payday. You can also make other voluntary contributions to your fund.
It is compulsory for employers to contribute another 3 per cent, and unless expressly agreed, this should be on top of the employee’s salary.
To get the most out of KiwiSaver, you’ll need to know your risk profile. If you don’t need the money for a few years, you can probably afford to take a bit more risk with your investment – and this will amplify your returns. A KiwiSaver adviser can talk through what your goals are and what type of fund will be the best to get you there. You can also consider things such as which fund aligns with your values – there’s an increasing number of responsibly invested funds that consider things such as environmental issues.