KiwiSaver is a “set and forget” scheme for many, but a few small tweaks can make a massive difference to your final balance. At AdviseNow, we want to help you squeeze every drop of value out of your KiwiSaver account.
1. Get the Full Government Contribution
Every year, the government will give you 50 cents for every dollar you contribute, up to a maximum of $521.43. To get the full amount, you need to contribute at least $1,042.86 between July 1st and June 30th. It’s essentially “free money”—don’t miss out!
2. Check Your Prescribed Investor Rate (PIR)
If your PIR is set too high, you’re paying too much tax. If it’s too low, you might end up with a surprise tax bill. Checking this once a year ensures your savings are growing as efficiently as possible.
3. Review Your Contributions
Could you increase your contribution from 3% to 4% or 6%? Even a small increase now can lead to a significantly larger nest egg in the future thanks to the power of compounding.
Key Takeaways
- Always contribute enough to get the full $521 government bonus.
- Ensure your tax rate (PIR) is correct.
- Small increases in contributions lead to big results over time.
Disclaimer: This information is general in nature and does not constitute personalised financial advice.
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