The 5 most frequently asked questions.

By Scott Crocker

KiwiSaver is a popular retirement savings scheme in New Zealand, but many people still have questions about how it works. Here are the answers to the top five questions New Zealanders have about KiwiSaver:

 How does KiwiSaver work?

KiwiSaver is a voluntary savings scheme designed to help New Zealanders save for their retirement. It works by deducting a portion of your pre-tax income and investing it in a KiwiSaver fund of your choice. You can choose to contribute either 3%, 4%, 6%, 8%, or 10% of your gross (before tax) pay to your KiwiSaver account.

 What are the benefits of joining KiwiSaver?

By joining KiwiSaver, you'll benefit from your employer's contributions (if you're eligible), government contributions (if you're eligible), and potential investment returns. KiwiSaver can also help you save for a first home, as well as provide financial security in retirement.

 How much should I contribute to my KiwiSaver account?

The amount you should contribute to your KiwiSaver account depends on your individual circumstances and retirement goals. A general rule of thumb is to aim for a contribution rate that allows you to save 10-15% of your income for retirement.

 What are the investment options available in KiwiSaver?

There are a range of investment options available in KiwiSaver, including conservative, balanced, growth, and aggressive funds. Conservative funds are generally low-risk, low-return options, while aggressive funds are high-risk, high-return options. Your investment choice will depend on your individual risk tolerance and investment goals.

 When can I access my KiwiSaver funds?

You can access your KiwiSaver funds when you reach the age of 65 or meet certain eligibility criteria, such as purchasing your first home. In some cases, you may be able to access your funds early due to significant financial hardship or serious illness.

 In conclusion, KiwiSaver is a valuable savings scheme that can help New Zealanders save for their retirement. By understanding how it works, the benefits of joining, how much to contribute, the investment options available, and when you can access your funds, you can make informed decisions about your KiwiSaver savings and achieve your retirement goals.