Picture of a Guide



Thanks for visiting our retirement guide ‘Consolidating’, designed for New Zealanders aged 45-to-55. We’ll be focusing on the key things to think about as part of your strategy, including building multiple income streams. Plus, we’ll touch on the most relevant KiwiSaver features for your stage of life. Like to learn more? We have plenty of practical tips and insights to share, so let’s get started.
Picture of a Guide

IMPORTANT: Please note that the content provided in this guide is of a general nature. It is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance. Feel free to get in touch if you have any questions, comments or concerns.

Member only content. Please log in to access.

Member only content. Please log in to access.

KiwiSaver features relevant to your stage of life

KiwiSaver features relevant to your stage of life

Annual Government contribution

You may not know this, but every year, for each dollar you contribute to your KiwiSaver (excluding employer’s contributions), the Government adds an extra 50 cents to your account, up to a maximum of $521.43.

To get the maximum Government contribution, you need to contribute at least $1,042.86 in the year between 1 July and the following 30 June. All

KiwiSaver members aged 18-65, living in New Zealand (with some exceptions) and making contributions are eligible.

It’s easy to understand why this feature is so valuable: it’s like earning a 50 per cent return on the first thousand dollars you invest – every year. For example, if you contribute $400 in the year, you’ll get an extra $200 in your account. If you contribute $650, you’ll get $325, and so on.

To get the most benefit, it makes sense to maximise your contribution. Each year, in early June, you can check how much you’ve contributed during the KiwiSaver year: if it’s less than $1,043, you can still manually top up your account to secure the maximum Government subsidy.

Lock-in Feature

It may sound counter-intuitive, but one of the main benefits of KiwiSaver is its inaccessibility. Apart from very few and specific exceptions, you can’t use your funds until retirement – which gives your investments ample time to grow undisturbed.

Ability to scale up your contributions

If you’re employed, you can change your contribution rate once every three months, unless your employer agrees to a shorter timeframe. If you’re self-employed, on the other hand, you agree the contribution amount you wish to make with your KiwiSaver provider: make sure you talk to them if you’d like to change the contributions you make.

What you need to be thinking about

What you need to be thinking about

With so much going on in your financial life, it can be easy to overlook your retirement needs. But the decisions you make during the ‘Consolidating’ stage have the potential to significantly affect your long-term outcomes. Now is the time to strengthen your retirement savings strategy and plug any gaps you may have.

If you’d like to make the most of your investments, your risk profile is a good place to begin. Generally speaking, if you have more than 10 years before you need to access your funds, your investments will likely have time to bounce back. But if you’re planning to wind down before the traditional retirement age of 65, you have the option to de-risk a portion or all of your investment portfolio.

Just like any other stage of life, the ‘Consolidating phase’ is a period of changing priorities, needs and financial resources: by making course corrections along the way, you can ensure that your retirement plan keeps up with you.

In the meantime, we’re here for any questions you may have, big or small. We hope this read inspired your retirement planning journey, and welcome you to get in touch with our advisers if you’d like to explore your options. We’re here to help.