Why is KiwiSaver bad? Shattering Myths

At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.

Today I’m going to debunk misconceptions on KiwiSaver and I want to shed light on the positive aspectsof KiwiSaver.

So let’s explore why KiwiSaver isn’t bad, but in fact a hugely, incredibly valuable tool for financial growth.

Long-term savings and retirement planning

KiwiSaver encourages a long-term savings mindset and it fosters a sense of responsibility towards financial planning, which is important.

By contributing regularly to your KiwiSaver account, you’re building a massive nest egg that will support you during your retirement golden years. It provides a disciplined approach to savings and it helps individuals develop good financial habits and it teaches you how investing works, and that is, in my opinion, really important achieving your financial freedom

Employer contributions

One of the standard features of KiwiSaver is the employer contributions. It’s free money from your employer. They are required to match your portion. You’ve gotta put in 3% minimum, and they have to match 3%. Now, there’s a lot of companies out there that will pay more than 3%.

Super advice pays more than 3% to our employees.

Then there’s government contributions and the tax benefits

The Kiwi government offers member tax credits to Kiwi Saver contributors, so that provides an additional incentive for you to save. The government wants you in Kiwi Saver as having your own money is a good thing for a government. KiwiSaver contributions are tax efficient because we pay our money into our KiwiSaver pre-tax.

So you’ve got your pay, your Kiwi Saver contribution comes out, and then you’re only taxed on what’s left over. It’s awesome.

Diverse investment options

Kiwi Saver offers a range of investment options, catering for different risk appetites, and different investment goals. And if you don’t know or aren’t sure, please come and ask us. We wanna help you find those two things out. So, whether you’re a conservative investor or you’re comfortable with high risk investments,there is a fund that’s suitable for you. And flexibility in investment choices allows each individual to align their KiwiSaver account with their personal preferences and their financial objectives. Now we know that a lot of people aren’t sure what their financial objectives are, or they aren’t sure what their personal preferences are, figure it out, it’s important.

First home buyer assistance

KiwiSaver offers financial assistance for first home buyers, there’s the Home Start Grant and there’s the KiwiSaver first home withdrawal, and individuals can access their KiwiSaver funds to help purchase their first home.

Yay. Super duper good. Helped a lot of people onto the property ladder and these provisions empower individuals to step up and to get it happening, and it assists them to save that deposit.

Financial education and guidance

KiwiSaver serves as a valuable platform for increasing financial literacy. We talk about this a lot. It encourages individuals to educate themselves more about investing strategies, asset allocation, retirement planning. There are learning resources with your KiwiSavers providers, they’ve got seminars, online tools, all these things help people make informed decisions and develop a deeper understanding of their personal finance. Or call us.

KiwiSaver is pretty awesome, right?

While misconceptions may paint KiwiSaver sometimes in a negative light, it is crucial to recognise the numerous benefits this retirement savings scheme offers. KiwiSaver promotes long-term savings, employer contributions, government incentives, a range of diverse investment options, first home buyer assistance and financial education.

By embracing these positive aspects, you can harness the true potential of KiwiSaver to secure your financial future. It’s time to debunk the myths and fully appreciate the value that KiwiSaver brings to individuals seeking financial prosperity. So start maximizing the benefits today.

If you need any financial help or advice please get in touch with us at Super-Advice.

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