How much do you know about your KiwiSaver account?

There’s a lot more to it than people think.

Answer the next four questions to see how taking advice now could mean the difference of hundreds of thousands of dollars in your retirement.

PLUS you could WIN a $3000 House of Travel voucher or 1 of 10 $100 GrabOne vouchers!

Do you know the difference between a growth fund and a default fund?

Generally, the longer someone is in KiwiSaver, the more growth assets they should have.

Here’s what your KiwiSaver account could be worth after 35 years based on a 5 yr average sector return p.a. on sorted.org.nz

Sarah 30 yrs with a
salary of $55,000
2.92% $226,485 Defensive
Sector
5.01% $325,482 Conservative
Sector
6.93% $470,693 Balanced
Sector
8.55% $658,169 Growth
Sector
* See “More details” to see the numbers behind the example More details

More details

The 5 year returns shown are the average for each fund type from sorted.org.nz Fundfinder 01 April 2010 to 30 June 2015.

Assumptions are that Sarah is aged 30 on a salary of $55,000 p.a. and already has a KiwiSaver balance of $9,500. She remains employed and contributing 3% of her before tax pay until she reaches retirement at age 65. In her first year on $55,000 her 3% contributions will work out to $32 p.w. Her salary is assumed to grow by 3% p.a. Inflation is assumed to average 2% p.a. Her employer’s contributions are net of employer superannuation tax.

The graph does not reflect the prospective performance of the Generate KiwiSaver Scheme or of any Fund. The 5 year average returns are used for illustrative purposes only.

The returns are subject to investment and other risks (including potential losses). No returns are guaranteed or assured, and returns can at times be negative, particularly given the length of the investment period shown in the illustration. Past performance is not necessarily an indicator of future performance and returns over different periods may differ.


Back

Do you know which KiwiSaver fund you are in?

Simple question but one in three Kiwis don’t know which fund they are in or that there are big differences between funds*.

Many people who have joined KiwiSaver were automatically put into a default fund. These default funds are intended by the Govt to be “parking spaces” before you work out the type of fund appropriate for you.

* “KiwiSaver investors far from informed” - stuff.co.nz December 2013.
Mercer KiwiSaver Sentiment Index study - Mercer May 2014.

Do you know how the Member Tax Credits (MTC’s) work?

Your Govt MTC’s could be adding $521.43 to your KiwiSaver account every year.

Last year ~$400m of KiwiSaver MTC’s was left unclaimed.* It’s important you don’t miss out on this Govt contribution unnecessarily as over time it adds up to a big difference to your KiwiSaver account.

* ”KiwiSaver investors missing $400m” Stuff 17.09.14.

Do you know what your KiwiSaver account Prescribed Investor Rate is?

Your Prescribed Investor Rate is the tax rate on your KiwiSaver account. It is either 10.5%, 17.5% or 28% based on your income over the last 2 years.

If you are paying too much tax you are not eligible for a refund. However, if you are paying too little tax you are liable to pay the difference back to the Inland Revenue.

You know your stuff! Check out our 4 key strengths to see why you should still get in touch

Our 4 key strengths

We have some compelling points of difference that are worth sharing:

  • NZ owned & operated KiwiSaver specialists
  • Investment Provider of the Year 20151
  • Ranked #1 for services by Sorted.org.nz2
  • #1 performance in growth and aggressive growth in 20153

Fill in your details and we’ll help make the most of your KiwiSaver account.
Plus you’ll go into our prize draw!

The fine print

1 Voted by the Professional Advisers Association.

2 Ranked #1 for services by sorted.org.nz as at 31 March 2015.

3 KiwiSaver Survey for year to 30 Jun 15 ranked both the Generate Growth Fund and Generate Focussed Growth Fund1st for performance. Past performance is not a reliable indicator of future performance. Returns since inception should also be assessed.

By entering my contact details I consent to be contacted by Generate Investment Management Limited and any of their authorised agents or distributors to promote their products and services. My information will be held securely and may be used for statistical purposes.

This survey has been prepared by Generate Investment Management Limited for general information only. I understand that neither the Manager nor the Trustee has represented or implied that any particular Fund or investment strategy is appropriate for my particular circumstances and has not provided me with either class advice or personalised advice.

A copy of the Investment Statement is available from an adviser or can be found at generatekiwisaver.co.nz.

The returns to members of the Scheme are subject to investment and other risks (including potential losses). No returns are guaranteed or assured, and returns can at times be negative, particularly given the length of the investment period. Past performance is not a reliable indicator of future performance. Returns since inception should also be assessed.

© 2015 Generate - Dreams worth saving

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