There are times in life where it may seem tempting to put extra into your KiwiSaver account. For example, you may be changing job and have money in a workplace (non-KiwiSaver) super scheme. Or you may inherit some money you do not intend to use until retirement. Or you may be thinking of increasing your contribution rate to bump up your retirement nest egg.
The question to ask is whether you want that money locked up until the ‘age of eligibility’ (at present this is age 65). As the ‘age of eligibility’ is currently when you can access your KiwiSaver account (excluding events like your death, serious illness, financial hardship, permanent emigration, or the purchase of a first home).
KiwiSaver is a good place to save into, if you are certain you won’t have a better use for the money before then.
But for people who are less sure, or who simply want to retain access to that money, opting to open a personal managed fund maybe worth considering. While the money in KiwiSaver is locked in until ‘age of eligibility’, the saver can get access to any money they put into their managed fund should they need or want it at any time.
Call us 0800 66 66 78 for a no cost, no obligation discussion regarding KiwiSaver and whether a managed savings fund is an option fit for you.