Being self-employed does not mean I miss out on KiwiSaver benefits
Even though the Government contribution has been halved, I am still getting an instant 50% return on my savings.
Neil, Hawkes Bay
Neil has been fortunate to have established a number of successful businesses over the years and felt relatively well prepared for "retirement" — although now it is far too close for his liking!
"When KiwiSaver first came along, I didn't give it too much thought as I assumed it was mainly for employees. However, once I looked into it, it seemed to me a very sensible business decision and one I should sign up to.
"Being self-employed, I wasn't required to put in a fixed percentage of my income which suited me. I also had flexibility over when and how I contributed. And then I did the sums! The Government matched me dollar for dollar up to $1,043 per year – there was nowhere else I could double my money so easily. Even though the Government contribution has been halved, I am still getting an instant 50% return on my savings. That's all before Fisher Funds enhance this even further with their returns! In my mind, it's the best use of $20 per week you could imagine.
"I can't ever quite see myself retiring but the money that's been accumulating will definitely fund a few of my hobbies: some travel, kitchen equipment and much more. The great thing is I don't have to take my money out at 65, or when I retire (if I ever do). I can keep it there, top it up, draw some down whenever I want, once I've reached 65.
I knew a little bit about Fisher Funds through some close friends and watched their performance over time. I liked their strategy of really getting to know companies before they chose to invest with them. Also, they're Kiwi owned and operated — and not an Aussie bank — that's important to me.
I treat my KiwiSaver account as a nest egg for the future. It's sitting there working away for me in the background to fund a few things I can enjoy with family and friends.