Do you know where your KiwiSaver money goes?
05 May, 2016
You may have read several articles last month about the large number of KiwiSaver members who don't know what is happening with their hard-earned savings. Research found that:
- 77% of KiwiSaver members didn't know what their KiwiSaver account would be worth when they retired
- 27% didn't know what type of fund their KiwiSaver account was invested in (cash, conservative, balanced, growth, etc)
- 31% had never reviewed the type of fund they had invested in to see if it was appropriate
- 14% didn't know who their KiwiSaver provider was
It's not the first time these types of statistics have been published and unfortunately they're not too surprising. We only have to look across the Tasman to see why playing detective with your KiwiSaver account matters.
It is estimated that there is $17 billion of "lost super" in Australia. That is a staggering amount of wealth without a home. Some of that belongs to New Zealanders who've lived and worked over there but it still begs the question, why would you not care about money you've worked so hard to earn?
Sure, retirement may seem like a long way off, but it pays to devote a little bit of time and interest now, as mistakes now can be costly over time:
Lax tax — Are you on the correct tax rate? No one likes paying more tax than you need to. You can double check your tax rate on our website. If your current tax rate is incorrect, you can amend it at any time by completing our form.
Pick up your $521 — For every $20 you contribute, the Government will give you $10 up to a maximum of $521.43 — this is known as the member tax credit. Too many people don't maximize this. It's the closest thing to "free money" so don't leave yours lying on the ground. If $10 a week doesn't motivate you, perhaps $24,507 will. That's what $10 per week adds up to over 47 years (joining at 18 and contributing until 65).
Lazy money — We all picture a lifestyle in retirement where we can attack our bucket list. But retirement can be more expensive that many retirees expect, reinforcing the importance of making your savings work for you. Have you reviewed how your money is being invested? Take five minutes and run through our questionnaire to see if you're on the right path.
Our team is here to help you to make the most of KiwiSaver. We're only a phone call or an email away.