1 – 31 AUGUST 2023

Maximise your money in your 30s: 7 – 11 August

Day 5:  Small tweaks now, big difference later – Grow your KiwiSaver

In your 30s, retirement might seem far away, however, time is one of your most valuable assets. When it comes to saving for retirement, even a small increase in your KiwiSaver contributions now can make a substantial impact on your retirement savings due to the magic of compounding.

Challenge yourself to make the most of your KiwiSaver with these practical tips from expert financial advisers:

The power of KiwiSaver – gradually increase your contributions without even noticing it

Consider gradually increasing your KiwiSaver contributions as your income grows or when you receive a pay raise. A small percentage increase each year can go unnoticed in your take-home pay, but it can significantly boost your savings in the long run.

Take advantage of employer matching

Many employers in New Zealand offer to match your KiwiSaver contributions up to a certain percentage of your salary. It’s essentially free money for your retirement! Be sure to contribute enough to take full advantage of your employer’s matching contribution.

Make voluntary contributions

In addition to your regular contributions, consider making voluntary contributions to your KiwiSaver account. Whether it’s a lump sum payment or regular voluntary contributions, these extra payments can accelerate the growth of your retirement savings.

Revisit your investment strategy

In your 30s, you may have a higher risk tolerance since you have time on your side, allowing you to take advantage of growth-focused investment options. However, it’s essential to strike a balance between risk and potential returns that align with your long-term financial goals, speak to an adviser about your options.

Keep your KiwiSaver account active

Changing jobs, taking career breaks or starting a family can lead to neglecting your KiwiSaver account. Make it a priority to keep your KiwiSaver account active and consider transferring your account to a provider with better investment options and lower fees, if necessary. From mid-2024, new parents will also receive a three percent government contribution to their KiwiSaver while on paid parental leave, provided they continue their own KiwiSaver contributions. 

Being proactive about your retirement savings and making smart tweaks to your KiwiSaver contributions in your 30s can have a profound impact on your financial future, and lead to a more comfortable and secure retirement.


Top tips contributed by:

Kerrin Hotop | General Manager Corporate Services

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