Like almost anything of value we own, your KiwiSaver account needs a little love and attention now and then. Let’s call it a health check. It won’t take long, and your KiwiSaver account will love you for it.
Look at it as a “do-it-yourself Warrant of Fitness”. We suggest it be done annually; perhaps at the beginning of each year or when you receive your annual member statement.
- Is your investment profile suitable for your current situation?
This is about where your funds are invested. Is your choice of investment funds too conservative, too aggressive or just right?
The Sorted website has a useful tool to help you called Investor Kickstarter at www.sorted.org.nz/tools/investor-kickstarter. You answer a few questions and it provides a guide to what type of investor you are, a typical investment mix for your type and what sorts of returns you could expect.
- Are you contributing enough?
If you can afford it, should you increase your contribution rate or make extra voluntary contributions?
If you have suspended making contributions, is it time to recommence contributing?
The Sorted website has another useful tool to help you with these questions, the KiwiSaver Savings Calculator www.sorted.org.nz/tools/kiwisaver-savings-calculator. You answer a few questions and it provides a guide on how big your balance could be at age 65 and how much you could get per week in retirement. Try different contribution rates to see the impact on your future savings.
- Is your Personal Investor Rate (PIR) correct?
You don’t want to have too much tax taken from your KiwiSaver earnings or too little and face a tax bill by having the wrong PIR rate. Your PIR is based on your income. If that changes, so might your PIR. We have a handy guide to help you with calculating your PIR on the scheme’s website www.christiankiwisaver.nz/documents.
If these three items are in good order, your KiwiSaver account should be running well.
Our staff are happy to help you with any questions you have on this.