If you’re employed, you can contribute 3%, 4% or 8% of your salary before tax to a KiwiSaver scheme. Increasing your contributions can make a massive difference to your results.
For example: On a $60,000 salary, increasing your contributions from 3% to 8% could give you an extra $197,000 at retirement. This is calculated over 47 years from age 18 to 65, in a conservative fund returning 3.1% per annum (after fees) and tax rate of 28%.
Now that’s a big difference. Use Sorted’s KiwiSaver savings calculator to find out how much difference it could make to you.
You can change your contributions by:
If moving to 4% or 8% is too much, you can make one-off lump sum payments or set up your own regular automatic payments instead. This might suit you better if your income varies.Next