Just like you get a Warrant of Fitness for your car, it’s important to regularly check your KiwiSaver Scheme to make sure it’s still set up the way you want. Here are some easy tips to make sure your KiwiSaver is in top shape. We recommend doing this once a year, either at the start of the year or when you get your annual member statement.
1. Check if Your Investment Profile is Right for You.
This is about where your money is invested. Does your choice of investment fund, match the level of risk you are comfortable taking?
The Sorted website has a handy tool called Investor Profiler. You answer a few questions, and it helps you find out what type of investor you are and what kind of investment mix is best for you.
2. Are You Contributing Enough?
Think about whether you can afford to put in more money or make extra contributions. If you stopped making contributions, is it time to start again?
The Sorted website also has a KiwiSaver Calculator. Answer a few questions to see how big your balance could be at age 65 and how much you could get each week in retirement. Try different contribution rates to see how they affect your savings.
3. Is your Personal Investor Rate (PIR) correct?
Your PIR is the tax rate we use to calculate the tax on your investment earnings. Make sure you’re using the right PIR. You don’t want too much tax taken from your earnings, or too little and end up with a tax bill. Your PIR for the current tax year is based on your total taxable income in either of the last 2 tax years. If that changes, your PIR might change too. Inland Revenue can also tell us to change your PIR if they think it’s wrong. Our website has a guide to help you calculate your PIR
That’s it! Checking these three things every so often will help make sure your KiwiSaver account is working for you. Our team is happy to help with any questions you have.
