Quick wins and smart moves to maximise your retirement savings.
Never chose a fund? You're in a default balanced fund. There are 5 types: Defensive, Conservative, Balanced, Growth and Aggressive. The right one depends on your age, when you'll need the money and how much risk you're comfortable with. A 25-year-old in a conservative fund could miss out on decades of higher growth.
Some funds have stayed ahead for years. Others have underperformed compared to peers. Find your fund and see how its returns compare with funds like it, after fees and tax.
The government adds 25c for every $1 you contribute, up to $260/year. You need to put in at least $1,042.86 between 1 July and 30 June to get the full amount. Your employee payroll deductions count, but employer contributions don't. Self-employed or on a contribution holiday? You'll need to make voluntary payments directly to your provider.
You can contribute 3.5%, 4%, 6%, 8% or 10% of your pay, and your employer adds 3.5% on top. Moving from the 3.5% default up to 6% on a $60k salary costs about $29 a week. That extra 2.5% goes straight into your KiwiSaver and compounds over decades. The earlier you increase it, the bigger the difference at retirement.
Feijoa rounds up what you spend on your card and puts the difference into your KiwiSaver. Small amounts, automatically, without having to think about it.
Free, independent advice that matches you to a fund based on your goals, your values and how much risk you're comfortable with. It takes about five minutes.
Six things to do. Tick them off and you've covered the essentials.
