Article from Sorted.org.nz
KiwiSaver, the government's new voluntary retirement savings scheme, has finally arrived. From now on, when most people start a new job, they'll be automatically enrolled in KiwiSaver and will need to decide whether to stay in or opt out. Almost everyone else under the age of 65 can choose to opt in at any time.
Tax credits and employer contributions added to KiwiSaver in this year's budget may have made the scheme appear more attractive. The changes have also made it even more vital that you make an informed decision about the scheme's suitability for your own personal financial situation.
To help you make your decision, the Retirement Commission has highlighted some situations in which you should seriously consider joining KiwiSaver.
These are where:
- You can afford to contribute four percent of your pay.
- Your employer will make a contribution to your KiwiSaver account now not just from April 2008.
- You plan to buy your first home any time after the next three to five years, and you expect to be eligible for the first home deposit subsidy.
- You are over the age of 60, but not yet 65.
- You know it's time to start saving for your retirement.
If you can afford four percent of your pay and you don't mind the funds being locked in until you're 65, or older, then KiwiSaver could provide an easy and affordable way to save for your retirement. However, KiwiSaver won't suit everyone. There are other savings options which may be more flexible and work better for you.
For more help visit the Retirement Commission's free, independent personal finance website sorted.org.nz and check out the Quick KiwiSaver calculator, or seek professional financial advice.
|Article provided by Sorted.org.nz. The Retirement Commission's free and independent website Sorted.org.nz is packed with helpful information, tools and calculators to help you manage your personal finances.