There seems to be some controversy when it comes to having or not having a KiwiSaver, but if you know what you’re investing in then it can actually be beneficial for you. When you see how much the funds grow over the years, you will most likely not regret starting a KiwiSaver account from day one of your working life. If you’re still unsure or need some more information on your current investment, read these tips and hopefully they will guide you to make even more money on your KiwiSaver.
The first tip is how to get used to contributing to your KiwiSaver sooner than later. The best thing you can do is start from day one, with your first pay, because that way you won’t miss the money. It also makes it easier to budget, you won’t have to make any adjustments like you would if you start contributing later. Another way to plan ahead is to enroll your children, because they receive the $1000 kick start but with no tax credit. They can begin contributing with their own money when they start a part-time job, once again, getting them into the habit of doing so.
When you have decided that you want a KiwiSaver account, make sure you know exactly what you’re getting from your employer and you are picking the right fund that best suits your needs. Make sure you know about the “total remuneration” clause that might be in your contract when you start with a new employer. What this means is that employers can actually take their contributions to your KiwiSaver from your pay rather than paying you on top of what they originally said they would pay you. All you have to do is keep an eye out for this when you’re negotiating and make sure they are not doing this if you are getting paid minimum wage.
Now that you’re set up with your KiwiSaver and making regularly payments, here are some more tips to keep you motivated to keep it. Try your best to make voluntary payments, however, only do this if you already have some savings and an emergency fund. If you come into contact with some extra cash, the more you put into your KiwiSaver, the more you will get out of it. If you’re earning less than $34,762 a year, make sure you top up before the end of the tax year to ensure that you get the full government contribution. Lastly, watch what you read, if you are typing in google for information about KiwiSaver, don’t believe everything that is written because there is a lot of information out there on the Internet that is completely wrong, not these tips though, these are correct.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.