It’s worth enrolling for the $1,000 kickstart provided by the Government because who knows when this might change or be removed altogether.
However try to avoid the default schemes as no thought is given to which investment their funds are placed in. This means that many younger people are only in fixed interest or at worst cash funds. This could be a future source of disappointment when the lack of asset growth becomes apparent.
Also note there is little advantage in contributing to the kids KiwiSaver accounts. Under 18 years of age they are not eligible for member tax credits, employer contributions or first home assistance. However it will be extremely beneficial to contribute a minimal annual amount in order to maintain the administration fees charged by the scheme providers.
One of the services we offer is to provide a personalised financial plan appropriate to the needs of a KiwiSaver. If you are considering enrolling your kids, your grandkiddies, or someone else you know, or maybe you’re in a default scheme, contact us for a free review and if needed, have a financial plan completed, which reflects your long term goals and risk profile.
There is absolutely no cost or obligation, and if it is agreed that we manage the transition over to a suitable scheme, we handle everything for you. Call us now 0800 66 66 78.