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Turning $521 into $40,000 – The goldmine Kiwi’s are sitting on

Clark 0 Comment
Piggy bank

Turning $521 into $40,000 - The goldmine Kiwi's are sitting on​

What’s the deal with KiwiSaver Contributions?

Ever wondered how every dollar you pop into your KiwiSaver translates into a bigger nest egg down the line? It’s not just about the dollars—it’s about the time they’re given to grow. Each contribution you make is like planting a seed in your financial garden. The longer you let it grow, the more fruit it’ll bear when you finally reach retirement.

Free money.

If you’re a Kiwi between 18 and 65 living in New Zealand, there’s $521.43 up for grabs from the government each year. To get the full amount, all you need to do is make sure you’ve contributed at least $1,042.86 ($21 per week) to your KiwiSaver between July 1st and June 30th. It’s as simple as that! $521 may not sound like a lot – but…

It’s an immediate 50% return on the $1,042 you invest.

You get to keep the money that is made off of that $521.

IT’S FREE MONEY.

Why should you care?​

Now, you might be thinking, “Why should I care about all this?” Well, here’s the thing: we’re all living longer, healthier lives. That’s awesome, right? But it also means we need more money to enjoy those extra years.

Superannuation is great, but it’s not always enough to live comfortably, especially if you want to maintain a certain lifestyle. That’s where your KiwiSaver comes in. It’s not just a savings account; it’s your ticket to a more relaxed, choices-packed retirement.

Ingredients to success.

Imagine your KiwiSaver account as a hearty stew. Sure, you need good ingredients (like your regular contributions), but the real flavour comes out when you let it simmer (or in this case, grow over time). Time is your best mate when it comes to building up your KiwiSaver. The more time you give your money to grow, the more compound interest works in your favour. That’s the magic of time—it takes those small contributions and turns them into something much bigger over the years.
We’ll let the numbers tell the story…
If a 35-year-old is…
  • in an aggressive fund returning 5.5% (p.a)…
  • adding $521 to their KiwiSaver every year…
  • Repeats this for 30 years ($15,630 contributed in total)…
They’d have an extra $40K for their retirement.
 
Now, the equation isn’t restricted to just Government contributions – you can use these figures to add multiples to your retirement savings over time. PLUS, if you want a calculation done for a different time frame, we can do that too.

The secret sauce: Action

First, make sure you’re contributing enough to your KiwiSaver to take full advantage of the government’s contributions. If you’re unsure, check in with your provider or with the IRD to make sure you’re on track.

And if you’re not sure if your current fund is the best fit, don’t stress. Just touch base with us, and we’ll help you figure it all out. After all, the sooner you start, the more time your money has to grow—and the better off you’ll be when it’s time to kick back and enjoy the fruits of your labour.

So, what are you waiting for? Time’s ticking!