Sponsored: While many of us set and forget our KiwiSaver account settings when we sign up for the retirement savings initiative, there are some tried and true ways to make sure you make the most out of your investment each year.
"The most obvious tip is to make sure you’re contributing enough to your account each year in order to receive the Government’s annual $521 contribution. To get this bonus you need to contribute at least $1042.86 into your account each year", says Generate adviser Ken Knight.
"It’s well worth it, as it’s practically a 50 percent return, which is almost unheard of – especially in financially volatile times, like the present. And the compounding nature of KiwiSaver investments means this money has the potential to grow substantially over the long term," he added.
But one of the lesser-known tips, that can really help you maximise your account, is making sure you get the right advice – regularly.
Knowledge is power and while Kiwis aren’t the greatest at talking about money, being more open to seeking advice can pay off.
"Research shows that financial advice adds long-term value to your savings. It’s a great way to make sure your KiwiSaver account is set up in the right way to maximise your savings and help you achieve your savings goals – as you get older and your investment needs change.
"We recommend checking on your account settings annually or sooner if their employment situation or savings goals change; and while online or digital advice is great, sometimes it’s just nice to talk to someone in person so they can understand your situation, which can go beyond just financial stressors," says Knight.
Another consideration is to look at your returns after fees have been taken out, to get a better understanding of the value of your provider’s return.
"At the end of the day, the dollar amount in your KiwiSaver account is what really matters. Whether your provider has slightly higher or lower fees becomes less relevant if the returns they are getting are also higher than competitors,” adds Knight.
And a final tip for adding value, if your KiwiSaver goal is to save for a first home, is to investigate the $10,000 first home grant.
"This is only available to KiwiSaver members, some conditions apply, but a Generate advisor can help you access that," says Knight.
No part of this article is intended as financial advice. It is intended as general information only. The issuer is Generate Investment Management Ltd. For a copy of the Generate Product Disclosure statement, visit generatekiwisaver.co.nz/pds.
