If you don’t belong to KiwiSaver – you absolutely need to join!

You invest $1,042.86 p.a. ($20 per week) and receive a tax credit of $521.43 back from the Government FREE!  These funds can either go towards helping you into your first home or helping you save for your retirement.

If you are employed at the minimum you need to invest in KiwiSaver is 3% p.a.  So if your salary is $35,000 gross (before tax) per annum or more, you will meet the minimum amount to earn the $521.43 tax credit, without having to top up your contributions.  If you earn below $35,000 p.a. you can make a voluntary contribution to ensure you receive the tax credit.

If you are serious about saving for your first home using KiwiSaver then the best possible way to do this is to budget so that you pay the maximum amount – 8% – into KiwiSaver in the years before you wish to buy your first home.  This will mean that you will save sufficient funds quite quickly for the deposit on your first home.  

Once you have purchased your first home, you drop your contributions back to 3% and pay any surplus funds off your mortgage as this reduces your interest costs.

Realistically, in the future, your KiwiSaver could well become the biggest asset you have, including your house property!

Understanding your KiwiSaver and how it can work for you is very important.