Tax credits and employer contributions added to KiwiSaver in this year’s Budget may have made the scheme appear more attractive. The changes have also made it even more vital that you make an informed decision about the scheme’s suitability for your own personal financial situation.
To help you make your decision, the Retirement Commission has highlighted some situations in which you should seriously consider joining KiwiSaver. These are where:
• You can afford to contribute 4% of your pay.
• Your employer will make a contribution to your KiwiSaver account now – not just from April 2008.
• You plan to buy your first home any time after the next 3-5 years, and you expect to be eligible for the first home deposit subsidy.
• You are over the age of 60, but not yet 65.
• You know it’s time to start saving for your retirement.
If you can afford 4% of your pay and you don’t mind the funds being locked in until you’re 65, or older, then KiwiSaver could provide an easy and affordable way to save for your retirement. However, KiwiSaver won’t suit everyone. There are other savings options which may be more flexible and work better for you.
For more help visit the Retirement Commission’s free, independent personal finance website
sorted.org.nz, or seek some professional financial advice.
