Time for some KiwiSaver advice. Where else can you experience a 287% return?
Our KiwiSaver Adviser shares a retiring couple’s KiwiSaver success story, proving you can get started later in your career and still reap some real benefits.
“I joined KiwiSaver when I was 61 years old. Initially I was contributing 4% of my income, which was matched by my employer. After one year the rules changed, so on professional advice I reduced my contribution to 2%, with the 2% from my employer. I retired at aged 65, but as I was not eligible to draw on my funds until after 5 years had elapsed, I continued to pay the $1042 annual contribution to receive the tax credit.
After 5 years my KiwiSaver was worth $22,400, with a personal outlay of $8,965. Fortunately we have not yet had to draw on our KiwiSaver funds, and my account is now worth $27,008.
My wife was 59 when she joined, but she ceased work soon after meaning her employer contribution was only $153. To entitle her to receive the yearly tax credits, I continued to contribute $1042 into her account. When my wife reached 65 her account was worth $13,802, with a personal outlay of $5628. Our two accounts combined are now worth $42,000.
With a personal outlay of $14,594, that represents a return of approximately 287% on our personal contributions.
Many thanks to the couple who shared this story.
At Cole Murray we understand that there’s more to Retirement Planning than just making regular contributions into a KiwiSaver account and crossing your fingers it will be enough. There are many investment options available, and our team are here to help you through the process of choosing which investment plan will work best with your life and goals, and making adjustments as life changes.
Whether you are wanting to join, or not sure what you’ve got already, get some helpful KiwiSaver advice from us today.
You can email our KiwiSaver advisers or call the office on 06 870 7050.
Photo by Anukrati Omar on Unsplash
