Step up your KiwiSaver savings in 2022


Generate Contributor


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“Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffet

Feeling motivated to save more in 2022? It could be easier than you think.

A few updates to your KiwiSaver account now could make a huge difference to your savings in the long-term. Take a look at our five simple savings tips below:

1. Consider increasing your KiwiSaver contribution

As a KiwiSaver member, you have the option of contributing 3%, 4%, 6%, 8% or 10% of your salary to your KiwiSaver account. While the difference between these contribution rates isn’t much, increasing your contribution by just 2 or 3% could make a significant difference to your savings in the long run, as you take advantage of ‘compounding returns’ over time.

‘Compounding returns’ means that the money you earn on your investment (your return) is reinvested (it stays in your KiwiSaver account), which allows you to earn even more returns on that initial return! The earlier you get started, the more you could save as over the years, you could make returns, on your returns, on your returns… and so on!

This is especially important when you consider how much money you’ll need to retire comfortably. Some experts recommend saving as much as 20% of your income for the future, but one thing you don't want to do is set goals that are too hard to achieve. It’s better to start at whatever level you can afford, and then increase it when you’re ready. Ask yourself, if I increased my contribution today, would it significantly affect my lifestyle now? If not, why not let it start earning returns for your retirement!

To change your KiwiSaver contribution rate, ask your employer for a KS2 form.

2. Get an extra $500 from the government!

Did you know that you can get $521.43 every year from the government just for contributing to your KiwiSaver account? That’s free money! All you need to do is make sure you contribute at least $1,042.86 to your KiwiSaver account between July 1 and June 30 every year.

Check out your Generate online account to see how much you’ve contributed this year and make sure you’re eligible.

3. Check your fund type suits your goals

If the main goal of your KiwiSaver account is to save for a comfortable retirement, and that’s still at least 10 years away, a fund focused on growth is probably the best for you. At Generate we have two fund options in this category, our Growth Fund and our Focused Growth fund.

While these are both great options for long-term savers, there is a difference between them; our Focused Growth fund carries slightly more risk than our Growth Fund, as a higher percentage of it is invested in ‘Growth Assets’ (shares and property). This means while it might be more affected by short-term market fluctuations, the Focused Growth Fund also has the potential to earn more over the long-term.

If you’re already in our Growth Fund, you may want to consider moving to the Focused Growth Fund. Or perhaps consider moving a portion of your KiwiSaver savings into this fund and split your KiwiSaver investment across both the Growth and Focused Growth funds.

Changes like this can be made in your Generate online account.

Note: If you’re saving for your first house and are likely to buy in the next few years or your retirement is less than five years away, then our Conservative Fund could be more appropriate, as this investment is generally more stable in the short-term.

For more information on our funds and to find the one that’s right for you, contact one of our advisers>

4. Consider making voluntary contributions

You can deposit extra money into your KiwiSaver account whenever you like. This is an easy way to invest in International and Local stock markets, without having to worry about finding a broker, paying additional investing fees or trying to pick the right stocks. Your money is actively managed by our team of investment professionals, who monitor the markets daily.

See how to make payments to your KiwiSaver account here.

5. Refer your friends and go in the draw to win* $4000

Looking for some more immediate financial gains? While we can’t promise this one, you have as much of a chance as anyone!

For existing Generate members:
For every friend or family member you refer to Generate, we’ll put you in the draw to win $4000 worth of travel or entertainment vouchers. Terms apply, find our ‘Generate & Win Entry Formhere.

Not a Generate member?
Get in touch and talk to one of our Advisers about your KiwiSaver options, and we’ll put you in the draw!
Contact us here.

Prize draw terms and conditions apply,
see details.