KiwiSaver Advice from the Experts
As well as setting you up for retirement, it can be used for your first home. Almost all first-home buyers we work with are getting into their first home through the help of KiwiSaver, so it’s safe to say it’s an important and extremely beneficial investment.
How KiwiSaver Works
With so many different KiwiSaver providers and funds out there it can be very confusing. Things such as your current situation, age and stage, goals and even personal beliefs should come into consideration when choosing the best fund and provider, so getting the right advice is key to maximising your potential earnings.
With compounding interest, the difference in returns between funds can make a monumental difference over a long period of time which is why it’s so important to get it right, and review it regularly.
Here is an example of the difference in KiwiSaver earnings between different funds:
Person 1
Earning $80,000 per annum with 30 years until retirement, contributing 3% in a growth fund earning 8.1%.
Estimated balance at 65 = $934,019
Person 2
Earning $80,000 per annum with 30 years until retirement, contributing 3% in a growth fund earning 12.5%.
Estimated balance at 65 = $2,523,247
That is a difference of $1,589,228 just by being in a higher performing fund.
This difference highlights exactly why being proactive and getting professional advice around your KiwiSaver is so important. Nobody wants to lose out on hundreds of thousands, to millions of dollars and we don’t want to see people missing out either.
Why You Should Contribute to Your KiwiSaver
Contributing to KiwiSaver also gives you access to different government funds and incentives through Kainga Ora, helping you get in to your first home. To find out more about how to use KiwiSaver for your first home and the grants available check out our First Home Buyers Information here.
Not only do we help you choose where you KiwiSaver goes but we help you withdraw it when it comes to buying your first home and managing it when it comes to retirement. Get in touch with one of our KiwiSaver advisers today so see if you are getting the most out of your KiwiSaver.
