KiwiSaver- no brainer?
As a resident of New Zealand, you may have heard of KiwiSaver, a voluntary savings scheme that aims to help you save for retirement. If you haven't joined KiwiSaver yet, here are three reasons why it's a no brainer to start investing in your future today.
One of the most significant advantages of KiwiSaver is that your employer is required to contribute a minimum of 3% of your gross salary or wage to your KiwiSaver account. This is a great incentive to join KiwiSaver as it means that you're not only saving for your future, but you're also receiving free money from your employer. Furthermore, if you're self-employed, you can still contribute to KiwiSaver and benefit from tax credits.
Another significant advantage of KiwiSaver is that the government provides a contribution to your KiwiSaver account as long as you're a contributing member aged between 18 and 65. For every dollar you contribute, the government will contribute 50 cents, up to a maximum of $521.43 per year. This is known as the Member Tax Credit and can significantly boost your savings. To receive the maximum contribution, you'll need to contribute at least $1,042.86 per year, which works out to be around $20 per week.
领英推荐
KiwiSaver is designed to help you save for retirement, so it's a long-term investment. The earlier you start contributing, the more time your savings have to grow. KiwiSaver is invested in a range of assets such as cash, fixed interest, shares, and property, which can offer higher returns than traditional savings accounts. Over time, your savings can compound, which means you earn interest on both your initial investment and the interest earned. This can significantly boost your retirement savings over the long term.
In conclusion, KiwiSaver is a no brainer as it offers numerous benefits, including employer and government contributions, and long-term investment growth potential. If you haven't joined KiwiSaver yet, it's never too late to start. The sooner you start contributing, the more time your savings have to grow, and the more you'll benefit from the advantages of KiwiSaver.
Content Coach for SME's - Podcast Host @Authority Nation - Award-Winning Content Creator
1 年In transparency I stuffed up here. I was 3 years into business before I signed myself up to Kiwisaver. I've been trying to redeem myself ever since with max contributions, such a no brainer. The company contributions are the icing on the cake. Quick question, I have 16 year old twins, working part time, do they have to be 18 to enrol in Kiwisaver?
??
Relationships grow businesses NOW Group helps you discover, nurture and develop those relationships | Advocate for Small Business | Connector | Networking Facilitator | MC & Speaker.
1 年Great to promote this simple yet potentially lucrative financial portfolio development we have here in NZ. I hope this message falls on the ears that needs to hear!
Final Farewell and the Grief Support Hub, Freelancer PA, NOW Group, BX Networking
1 年Thank you for a great article. It is still amazing how many people do not have Kiwisaver.
Helping business leaders turn their business’s potential into reality
1 年Kiwis have become terrible at saving money, kiwisaver can certainly part of resolving that and should be a no-brainer for most people in my (humble) opinion!