Other than purchasing a home, KiwiSaver has one of the biggest financial impacts you will have to face in your life.
However, many New Zealanders are unaware of how powerful it is and how much it can affect their lives. This especially seems to be a common theme for anyone under 30s, you will hear many in this age bracket, say “I have no idea who my provider is.”
The 3 KiwiSaver principles;
- If you haven't got access to it, you won't spend it.
- Little consistent deposits over time make a big difference.
- And finally, the mythical compounding of interest works to increase your savings.
But, there is also a sea of KiwiSaver providers, with ordinary returns. If you are wanting to ensure a comfortable retirement, then it is essential to get with a good provider.
Let's have a look at an example of just how powerful KiwiSaver can be.
A Kiwi tradie who starts work at the age of 18 with a wage of $40,000 per year starts putting 3% of his salary into Kiwisaver;
- At an 8% return, his Kiwisaver will be worth $1.728m by the time of retirement.
- With 10% returns, his funds will then be worth $3.426m at retirement.
- And at a 12% return, his savings will be worth $6.935m at the age of retirement.
As you can see, your KiwiSaver provider has a massive influence in the long run – in most cases, it will take less than 10 minutes to make the change of providers.
We Have Great News
We recently partnered with NZ Based Pathfinder to provide our customers with high-performing KiwiSaver funds. We are seeing returns since the inception of...
Conservative Fund - 4.92%
Balanced Funs - 9.92%
Growth Fund - 15.40%
If you would like to make a switch from your current KiwiSaver Provider or Sign Up for Pathfinder funds, you can do so here