Contributing 3% may seem like the easiest option when deciding how much to contribute from your pay into your KiwiSaver plan. But did you know you can contribute 4%, 6%, 8% or 10%?
The most popular option is to contribute 3%. But saving 3% of your salary isn’t very much. Will it be enough to fund the future you’ve dreamed of? In many cases, the answer is a resounding “no”.
Of course, the reason many of us don’t save more is because we can’t afford to. But imagine if you were able to make some small adjustments and managed to save just 1% more. How much would that improve your future?
Believe it or not, even a small change like this can make a big difference.
It may be more affordable than you think too…
But remember that KiwiSaver is not your only option
Our KiwiSaver Retirement Calculator allows you to estimate what your own KiwiSaver investment could look like at different contribution rates. You can try the tool here.
Although KiwiSaver is a great way to save, it’s important to remember that your KiwiSaver savings are locked-in until age 65. Because of this, many people prefer to place their additional savings into investments they can access before age 65, such as Investment Funds.
If you do decide to increase your KiwiSaver contribution rate, the process is very simple. Just tell your employer what rate you want to contribute at and they will adjust it for you – that’s it.
Either way, one thing is very clear – saving and investing a bit more now can help you create a much more comfortable future.
