Reviewing your savings requirements
As life changes it is worth reviewing your retirement savings requirements – how much you are saving, and whether your savings are invested mindfully. There are some changes you can make to your KiwiSaver account – you can transfer to another KiwiSaver scheme, change the fund(s) your money is invested in and change the amount you save.
We often put off changing our financial arrangements because of the hassle or because we might think that our employer has to do something to make the change for us. When it comes to changing KiwiSaver schemes this is not the case. If you want to join our Scheme then you simply read the Product Disclosure Statement to see if you are eligible and whether our Scheme is right for you, complete our application form and we will handle the rest.
It is worth checking with your current provider to understand whether there will be any transfer fees.
Changing the amount you save
Most people save the default percentage of their pay, which is 3% – however, you can choose 4% or 8%. If you’re working, contributions are deducted from your pay at the rate of 3%, 4% or 8%. Changing from (say) 3% to 4% can make a significant difference when you come to withdraw your savings. Work out how much difference making greater contributions can make using the Sorted Calculator.
You can make voluntary additional contributions at any time. There is no upper limit on voluntary contributions to our Scheme.
Taking a savings break
A contribution holiday is where you take a break from making payments into your KiwiSaver account. You can do this once you have been in KiwiSaver for more than 12 months. For more information visit the KiwiSaver website.
Changing investment funds
The Christian KiwiSaver Scheme offers you three investment options – the Growth Fund, the Balanced Fund and the Income Fund.
Are you in the right type of fund for you?
To determine what’s right for you, consider: How long is it until you need the money? Would you be able to stick it out if your balance dropped a bit from time to time? Do you have other savings?
To help you clarify your attitude to risk, you can seek financial advice or work out your risk profile at Sorted.