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Your KiwiSaver Health Check – courtesy of Financial Markets Authority

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Your KiwiSaver Health Check – courtesy of Financial Markets Authority

KiwiSaver health check

When was the last time you assessed the health of your KiwiSaver account? Let’s take a moment to ensure your retirement goals are on track by addressing key aspects of your investment. You want to ensure that your investments align with your goals, and here at Acorn Insurance we’re helping you make informed decisions along the way.

Take our simple KiwiSaver health check to make sure your KiwiSaver account is on track to help you achieve your retirement goals.

  1. Do you know who your KiwiSaver account provider is?
  • It’s important to know who your provider is, because they are looking after your money for you.
  • You can use the My KiwiSaver tool to find out who your provider is – you’ll need your IRD number to register.
  1. Do you know what type of fund you are in?
  • Most KiwiSaver providers have a choice of different types of investment funds where you can put your money.
  • Each fund has a different mix of things it invests in – such as bank deposits, bonds, shares and property.
  • Your KiwiSaver fund should match your investor type. Your investor type depends on things like how long you are investing for, and how you feel about risk.
  • Your investor type may change over time or as your personal circumstances change, so remember to revisit that from time to time.
  • Examples of fund type include defensive, conservative, balanced, growth, or aggressive.
  • You can use the KiwiSaver Fund Finder to find the right fund for you.
  1. Is your KiwiSaver account on the right tax rate?
  • The money your KiwiSaver account earns on it’s investments is taxed.
  • The tax rate you pay is called a PIR (short for ‘prescribed investor rate’) and can be either 10.5%, 17.5%, or 28%.
  • If you don’t make sure you’re on the right tax rate for you, you could end up paying more tax than you have to – and you won’t be able to get that money back.
  • Check with your provider to find out what tax rate you’re on and make sure it’s the right one for you.
  • You can also find out more in the KiwiSaver and tax section at IRD’s Kiwisaver section.
  1. Do you know how much money you have in KiwiSaver?
  • It’s important to keep track of your KiwiSaver account balance. It’s the money that will help you enjoy your retirement.
  • Try using the KiwiSaver account calculator on Sorted to see how your current balance could grow between now and when you retire, and what kind of weekly retirement income it might give you.
  • Your provider must provide you with an annual statement that includes details of your personal KiwiSaver balance and the contributions received.
  1. Do you think KiwiSaver is government guaranteed?
  • No it’s not – every investment comes with some level of risk, including KiwiSaver. It’s important to understand your risk profile and use that to find the right KiwiSaver fund for you.
    • Your provider must provide you with an annual statement that includes details of your personal KiwiSaver account balance and the contributions received.
    • The FMA closely monitors providers making sure they follow the rules and act in your best interests.

Now that you’ve navigated through these key questions, if you’re feeling uncertain, don’t hesitate to reach out. Your financial wellbeing is our priority, and we’re here to help guide you back on track. Feel free to contact me to discuss any concerns, so we can ensure your KiwiSaver is working its best for you.

Best wishes

Mike Bennett

Mike Bennett

In 1985, after 7 years in the banking industry in NZ & London, Mike Bennett joined the Life Insurance Industry as an adviser. In 2001 he started “Acorn Insurance & Investment Ltd” with the key principle; “to satisfy the insurance and investment needs of New Zealanders with the best products and service possible”. To achieve the guiding principle of “best products and service” the “Acorn” uses various industry research tools to identify the best products and prices to meet our client’s needs. Acorn has agencies with most of New Zealand’s major insurance companies which means we are free to use whichever products best meet our client’s needs. Believing that if we get it right for our clients we will achieve win-win solutions. We also recognise that nearly all insurance solutions are a compromise between the benefits you’d like to have versus the premiums you’re prepared to pay – with this in mind we WON’T be trying to sell you more insurance than you need or want !!

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