How union workers can take control of their KiwiSaver in 2023

If you’ve been thinking about reviewing your KiwiSaver this year, or you’re weighing up the merits of joining the retirement savings scheme, it’s important that you know how to get the most out of your KiwiSaver. To help you take control of your KiwiSaver this year, we’ve put together some things you’ll need to take a look at. 

Know what fund you’re in

It’s likely that the fund you’re currently in was chosen for you by default when you first signed up, or it’s one that was deemed suitable for you at the time. To maximise your KiwiSaver and ensure you don’t miss out come retirement, make sure you know what fund you’re currently in, and whether that fund is still suitable for your current situation. 

There are a few different KiwiSaver fund types, so you’ll need to do a bit of research or chat to an adviser to figure out your risk appetite and how much longer you’ve got before you can access your KiwiSaver funds. For example, if you’re likely to be drawing money out from your KiwiSaver sooner rather than later, you might consider switching to a more conservative fund type.

Review your contributions

The current contribution rates for KiwiSaver are 3%, 4%, 6%, 8%, or 10% - that’s how much of your salary you’ve chosen to contribute to your KiwiSaver fund. When you first signed up, you might have been contributing only 3% or 4%, but if your circumstances have changed and you’re earning more than before, you might like to increase your contribution so that you can enjoy a more comfortable retirement.

To receive the annual Government Contribution of $521.43, you’ll need to make sure you’re contributing at least $1042.86 during the KiwiSaver year of July to June. It’s a good idea to regularly review your contributions to make sure you’ve contributed that amount, especially if your circumstances have changed.

Scrutinise the fees you’re paying

Because KiwiSaver is an investment, the different KiwiSaver providers charge varying degrees of fees for managing your account, depending on the type of fund you’re in. More actively managed funds will usually have higher fees as they often have higher returns, but that’s not always the case.

It’s important to know your rate of return versus the fees you’re paying, and if you’re not happy with those numbers, it might be time to check out what other providers are offering.

If you’re not sure what fees you’re paying, Sorted has a great comparison tool on their website which details the returns and fees for each KiwiSaver provider and fund type to help you compare.

You can also get in touch with us for more information and advice to help you take control of your KiwiSaver this year.