“A few dollars won’t make a difference.” “It’s not the right time.” “I’ll get onto it later.”

Sound familiar? Most of us have plenty of reasons to avoid doing more with KiwiSaver, but when you look closer, they don’t stack up. Here are five KiwiSaver myths that are worth reconsidering.

Myth 1: Small amounts don’t really matter

Small, regular contributions can make a meaningful difference over time. For example, investing $10 a week from age 35 in a growth fund could grow to around $21,800 by age 65, assuming an annualised return of 4.5% after fees and tax. Over that time, you would have contributed $15,600 of your own money. It is important to note that actual returns will vary and are not guaranteed.

That’s compounding returns at work. Your contributions earn returns, and those returns earn returns of their own. Given time, even modest amounts can build into something that genuinely changes what your retirement looks like.

With KiwiSaver, these contributions are often taken care of automatically. If you’re employed, a percentage of your pay is deducted and invested for you, and you can change this percentage at any time. You may also receive extra contributions from your employer and the government, if you’re eligible. If you’re self‑employed, you can still take part by making regular contributions that suit you.

You don’t need to go big. You just need to get going.

Myth 2: It’s not the right time to invest

If you’re waiting for the perfect moment, you may be waiting a while. Markets rise, markets fall, and nobody knows exactly what the best timing is. The good news? You don’t need to worry about it.

There’s a simple approach that removes the guesswork. It’s called dollar cost averaging. When you contribute the same amount regularly, your money buys more of the fund when prices are lower and less when prices are higher. Over time, this can lower the average price you pay and help your investment grow efficiently, without needing to predict what markets will do next.

You don’t need to pick the perfect moment. You just need to pick a moment.

Myth 3: Just doing the minimum is plenty

The minimum might cover the basics, but it could also mean you’re missing out. The government adds 25 cents for every dollar you put in (up to $260.72 a year). To receive the full amount, you need to contribute at least $1,042.86 each year, if eligible – that’s about $20 a week. So that’s the real minimum.

If you’re contributing through your pay, you may already be covered. If not, it’s well worth making sure you are.

A little more in could mean a lot more out.

Myth 4: I’ll really notice the difference in my bank balance

Here’s the thing about money: we tend to adjust what we spend to the money we see in the bank.

So if you set up contributions to come out the moment your pay lands, it never quite registers as money you had. No willpower required, no monthly decision, no wondering whether to spend it or save it. Just extra savings, automatically.

It’s easy to set up directly through your bank, and after that, it just runs.

Myth 5: It’s too hard to set up

It’s easier than you think.

Most banks already have Fisher Funds listed as a bill payee, just search in your internet banking. Then add your Fisher Funds account number and surname as a reference, and choose weekly, fortnightly, or monthly. Whatever works for you.

A few minutes now. A very different number on the screen in 20 years’ time.

Are these myths? Or excuses? You make the call.

We can all think up reasons not to add money to KiwiSaver but there’s one clear reason to do it. Every dollar you add is a dollar that could grow. So whether it’s $10 a week or $100 a month, your future self will thank you for the effort.

Find out how to make additional contributions here.

Talk to us

If you’ve got questions about your KiwiSaver account, or how you can make contributions, our friendly team are here to help. You can drop us an email, call us on 0508 347 437, or chat with us online.