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Is KiwiSaver Safe?

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

In today’s blog post we are going to bust some myths and share some truths about KiwiSaver.

Is Kiwi Saver actually safe?

Our answer would definitely be yes. We’ve spoken to a lot of people who distrust KiwiSaver. The most common objection that we get around KiwiSaver is that the government will take my money.

How does Kiwi Saver work?

KiwiSaver essentially is a managed fund.

That means it’s a fund of money that is managed by a fund manager.

This investment vehicle has existed for many decades. It’s nothing new.

Where the government gets involved is they simply set the rules for the fund managers to follow when investing in people’s KiwiSaver.

When can you take out KiwiSaver?

The government has said that KiwiSaver money will be locked away until you’re 65, but you can actually get your money out earlier.

  • If you suffer severe financial hardship, you can get the money earlier.
  • If you suffer a total disability and can no longer work, you can get the money earlier.
  • You can get the money out to use for your first home purchase, which is pretty new and handy in today’s world.

The government doesn’t have any control over how you use your KiwiSaver. All they have control over is the rules surrounding how it must be locked away.

Is KiwiSaver a good investment?

KiwiSaver is a fantastic investment.

Where else can you put in some money? Your employer puts some money in, and then the government puts money in. The government also gives you an extra $521 free money every year. (this is currently being reviewed as of March 2022)

But that’s all win, win, win for everyone that invests their money

What control do I have over KiwiSaver?

You get to select how that money is invested.

A lot of people haven’t made that selection and they’ve just ended up in what we call a default fund. These default funds don’t really do much at all in terms of growth for you.

Is KiwiSaver worth it?

KiwiSaver is definitely, definitely, a wonderful idea and a great investment. For the people that started in it 10 years ago, they are really seeing some good growth, with many balances now heading up towards the $100K mark.

The earlier you can set up your KiwiSaver, and have it working correctly the sooner you can move towards a solid future.

Who can help me with KiwiSaver?

If anyone’s out there and has a big question mark over whether they want to be in KiwiSaver, speak to a financial adviser, and they can give you the best rundown on how it works.

If you are not sure your KiwiSaver is set up properly or what to speak to someone who knows about it, at Super-Advice we specialise in KiwiSaver and can lead you in the right direction to get the most out of your money.