There are many benefits to partaking in the KiwiSaver scheme. From getting into the habit of saving a percentage of your salary, to employer and government contributions. 

Firstly, the reason why the government created the KiwiSaver scheme was due to statistics showing Kiwis didn’t save enough money. According to Stats NZ, that mentality has slightly shifted with household income savings changing from under 1% of net disposable income in 2017 to upwards of 3% in 2022. Regularly investing in a KiwiSaver scheme can certainly be attributed to a shift in the mentality to save more. 

The other benefit you get is the employer and government contributions that come as an added incentive to participate. Your employer is obligated by law to contribute 3% of your salary to your KiwiSaver scheme at their cost. The government will contribute up to $521.43 to your account each year you contribute at least $1042.86. Therefore, if you haven’t already joined, you are missing out on a significant sum of added savings each year. 

There is also the benefit of supporting your financial goals. The KiwiSaver scheme savings you collect can be used as a deposit to purchase your first home or for retirement. Think of how difficult it can be to save for your first home deposit at the present time. The KiwiSaver scheme is a well-structured savings and investment system to help you achieve that goal. Also, financially relying solely on Superannuation is extremely difficult once you stop working and this long-term investment is important. 

The rigidity that the KiwiSaver scheme provides in terms of savings and investment is extremely helpful for everyday Kiwis. It is a way of making investing completely hassle-free but also government-regulated to ensure best practices.

There are plenty of KiwiSaver scheme options available for you to choose from. In fact, there are so many, that you may feel overwhelmed by the abundance of choices you have. The first step to choosing the right KiwiSaver scheme is identifying what your goals are. Free advice on which option is the right one for you is available via our HealthCheck analysis and report. 

Each KiwiSaver scheme offers a range of options they call ‘funds’ that you can pick from. These options will have different risk ratings based on the type of investments they are made up of. Cash and bonds are typically lower risk, while stocks, especially international are higher risk. However, the higher-risk stocks have shown a rate of higher return as a long-term investment. In the short term, these high-risk stocks have a track record of being volatile and exposed to market shocks. 

There are also faith-based schemes such as the Christian and Amanah KiwiSaver schemes. They specialise in providing ethical investment solutions according to the Christian and Islamic religious faiths, respectively. 

As you can see, there are options out there to suit everyone. It has also become the norm of every KiwiSaver scheme to invest ethically and consider environmental, societal, and governance issues.

You must identify what your goals and investment boundaries are. National Capital can help filter through all the KiwiSaver scheme options to find the one that best aligns with you. If you don’t make a choice, you will be automatically enrolled into a default KiwiSaver scheme. Regardless, you are free to switch to another KiwiSaver scheme anytime and as many times as you desire.

It is reasonable to feel overwhelmed with the KiwiSaver scheme choices readily available. With over 20 KiwiSaver scheme options, how do you know you’ve picked the right one?! Well, you can rest assured that these options do indeed serve a purpose and are tightly regulated. The good news is that you have advisers like National Capital that can help you pick the right KiwiSaver scheme. The answer to the abundance of options is linked to what also sets them apart. With that in mind, let’s dive deeper and discuss the differences between KiwiSaver scheme selections. 

Banking and insurance providers make up a significant number of the KiwiSaver scheme selection readily available. Providers such as ANZ, ASB, BNZ, Westpac, and Aon are all established brands in the banking and insurance industries. From their perspective, they are leveraging their reputations and brand recognition by offering KiwiSaver scheme solutions as an additional product. On the other hand, you’re getting the convenience of consolidating your KiwiSaver scheme and banking or insurance in one platform. 

Specialised investment firms such as Booster, Generate, and Milford Asset Management often have their roots in investing. They typically have a more hands-on approach and have a history as top performers when tracking returns on investment. If you are solely interested in returns, you may consider one of these options as the right one for you. 

There are also KiwiSaver scheme solutions tailored for people investing based on cultural and ethical beliefs. Amanah and Christian KiwiSaver scheme are two examples of investment firms based on religious beliefs. Pathfinder is an example of a KiwiSaver scheme that avoids investing in companies or industries deemed harmful to the planet. Meanwhile, the Medical Assurance Society is the preferred KiwiSaver scheme for medical professionals. 

In New Zealand, not everyone is legally authorised to offer advice on a KiwiSaver Scheme. It's crucial to get advice from qualified professionals to make sure you get accurate and reliable information.

Financial Advisors: The KiwiSaver scheme is an important part of planning for your future, but it can be complicated to navigate. These experts have a deep understanding of the financial world and can offer tailored advice based on your individual situation. They take into account factors like your income, spending habits, and future goals to recommend the best KiwiSaver scheme, contribution rate, and investment strategy for you. 

KiwiSaver Scheme Providers: The KiwiSaver scheme itself may not give you personal advice but does provide helpful information about their plans. Information includes how well the plan has done in the past, and how much it costs. By learning about the different plans, you can make smart choices that fit with your financial goals.

Employers: Employers play a supportive role in the KiwiSaver scheme journey. While not financial advisors, employers can offer practical assistance in the enrollment process, contribution setup, and basic information. They may also provide educational materials to employees and create an environment where questions about the KiwiSaver scheme are welcomed. 

Citizens Advice Bureau: The Citizens Advice Bureau (CAB) is a community-based resource offering free advice on various topics, including the KiwiSaver scheme. While CAB provides general information and advice, they are not a substitute for professional financial or legal advice. 

Reputable Resources: If you want to learn more about a KiwiSaver scheme, there are some trustworthy resources you can check out. These include the Financial Markets Authority (FMA), Inland Revenue Department (IRD), and Sorted. These resources offer tools, calculators, and educational materials to help you better understand any KiwiSaver scheme questions you might have.

Did you know that by enrolling in the KiwiSaver scheme, you can get some extra money for free? That's right! But there's a catch - you will need to contribute your own money to get these benefits. The good news is that there are many ways to get free money through the KiwiSaver scheme. However, you need to actively participate in the program to take advantage of these benefits. Here’s a detailed breakdown:

Member Tax Credits: The New Zealand government provides an incentive for saving through a KiwiSaver scheme, known as Member Tax Credits (MTC). If you contribute at least $1,042.86 each year, the government will reward you with a maximum MTC of $521.43. In simple terms, the government matches 50 cents for every dollar you save up to the designated maximum amount. 

Employer Contributions: Employers participate in the KiwiSaver scheme by matching their employees' contributions, usually up to a specified percentage of their salary. The minimum employer contribution is 3%. 

First Home Grant: For those planning to buy their first home, the Grant offers additional funds to assist in the home-buying process. The amount you can get depends on things like the location of the property and number of kids you have. If you're buying a house that's already been built, the maximum grant amount per eligible member is $5,000. But if you're buying a brand new house, the maximum grant amount per eligible member is $10,000. KiwiSaver scheme members aiming to buy their first home may qualify for the First Home Grant. 

First Home Withdrawal: The KiwiSaver scheme allows members to withdraw funds to facilitate their first home purchase. While it's technically not “free money”, government contributions, employer contributions, and returns collectively serve as a valuable source of funds.