What’s new about my KiwiSaver statement?
For the first time, KiwiSaver annual statements include an estimate of how much money members will have at retirement - and how much this would amount to as a weekly income on top of NZ Super if you were to gradually draw down this total amount over 25 years.
Why include this information?
All KiwiSaver providers must include this information so members can see clearly whether they are on track with saving for their retirement. This information will allow KiwiSaver members to take steps if they feel they’re not saving enough.
How is the projected total calculated?
The retirement projection in all KiwiSaver statements is based on the same formula set by the Government. The formula is deliberately conservative so you don’t over-estimate how much you’ll have in retirement.
The figures provided are not a guarantee, but are intended as a guide to help you make important decisions about your fund choice and how much you are contributing.
What should I do?
Take a look at your statement. Ask yourself these questions:
Talk to your KiwiSaver provider or consider getting some financial advice. There’s also lots of great tools out there to help you make the right decision. Our ‘What’s your KiwiSaver flow?’ chart is a great place to start.
What can I do if I don’t think I’ll have enough when I retire?
You can consider increasing your contributions, and/or switching to a more growth-oriented fund.
Increasing your contributions makes the most dramatic difference.
Changing to a higher growth fund can be a good option if you can’t afford to increase contributions right now (provided you are prepared to take on additional risk). This is particularly true if you’re younger.
Is my balance and forecast income low because of COVID-19?
It depends which fund you’re in but the projection is based on a March 31 balance date when investment markets were down because of the covid-19 shock. That said, don’t assume your balance is low because of covid-19 and will just “come right”.
The retirement projection in all KiwiSaver statements is based on the same formula set by the Government. The formula is deliberately conservative to ensure members form a realistic picture of how much money they will have at retirement age.
What if I can’t afford to contribute to KiwiSaver right now?
You can suspend your KiwiSaver contributions if you need to. Details are on the IRD website.
But KiwiSaver is designed to deliver value over time through the drip-feeding of contributions regularly into the fund.
And, your employer will stop contributing to your KiwiSaver fund when you do.
So if you need to stop contributing for a while, make sure you remember to start contributing again when you’re able.
How do I make sure I still get the Government contribution?
The Government will give you up to $521.43 if you contribute $1042.86 of your own money to your KiwiSaver fund in the year to June 30.
You can make a lump sum payment into your KiwiSaver fund to ensure you have contributed enough. (Your employer’s contributions don’t count.)
Even if you don’t contribute the full amount, you’ll still get 50 cents for every dollar you put in between 1 July and 30 June the following year. Full details are on the IRD website.
How do I find my KiwiSaver statement?
KiwiSaver providers must email or post you your statement by 30 June. Sometimes you’ll also be able to see it on your providers’ KiwiSaver app or in your online account information.
If you’re not sure who your KiwiSaver provider is contact Inland Revenue, they will have your details on file.