At SHARE they believe that the more informed you are as a KiwiSaver investor, the better the decisions you’ll be able to make, and this should help you to land up with a healthier retirement fund or reach that first-home deposit sooner. So, how can you increase your KiwiSaver balance? SHARE have some great tips to help you increase your KiwiSaver balance, starting with increasing your regular KiwiSaver contribution.
Most employed KiwiSaver members contribute at the default minimum 3% of before-tax salary but this can be increased to as much as 8%. This approach is also pretty flexible as KiwiSaver allows scheme members to change their contribution rate every three months. You can also make one-off voluntary contributions.
For example, if you have received a tax refund or an end of year bonus, you can pay it into your KiwiSaver account. Simply log onto your online banking, choose the “Pay Tax” option, enter your IRD number, and enter tax types “KSS” and period “0”.
It is also a good idea to examine your current default fund. If you didn’t choose your fund when you enrolled in KiwiSaver, and you are still in that fund, chances are you’re in the conservative fund of a default scheme. Moving to a fund with a greater exposure to growth assets, like property and shares, should typically give a better long-term return.
Another tip is if you’re between 18 and 64 years old (or older if you have been a member of KiwiSaver for less than five years), then you’re entitled to an annual tax credit of up to $521.43 from the government. It’s automatic if you have personally contributed at least $1,042.86 a year (1 July to 30 June), but contact your adviser if you’re not sure.
Finally, it pays to take an active interest and keep track of your investment. Read your member statements as well as any newsletters, to get a better understanding of how and where money is being invested on your behalf. Also remember to discuss how you are tracking with your financial adviser on a regular basis, so for more information on mortgage protection insurance New Zealand, family health insurance NZ and small business insurance New Zealand please go to http://www.sharenz.com/ .