New Year's 2023 resolutions

Making small changes now can create a big difference to your retirement.

Whether you believe in resolutions or not, the start of a new year is a good time to review your finances. We’ve put together some tips to help you make the most of your savings as we kick off 2023.

Regularly review your investment fund

Make sure your KiwiSaver contributions are going into the right type of fund for your circumstances. Choosing the right fund can make a big difference to your savings over time.   

You can see the potential effect different funds have on your savings in the chat below. These calculations are for a 25-year-old with a starting annual salary of $45,000, making the minimum 3% contributions (matched by their employer) with annual salary increases of 3.5% and the maximum annual Government contribution. 

Potential value of KiwiSaver account by age 65 for different fund choices

We've produced this chart using the retirement calculator on the Sorted website. The table assumes an investor contributes to the same fund over the course of their working life and does not make a first home withdrawal. In practice, you may decide to switch funds at various points in your working life, depending on your changing circumstances. The most important thing is to get financial advice tailored to your particular needs.

You can get an insight into which of the funds in the MAS KiwiSaver Scheme may be a suitable fund for you.

You can switch Funds if you make a decision.

There are currently no switching fees in the MAS KiwiSaver Scheme.

Consider how much you contribute

The more you contribute towards your savings now, the better off you'll be when you retire. The minimum contribution you can make to your KiwiSaver account as an employee is 3% of your salary, which your employer will typically match. But you can choose a higher rate if you want to.

In the chart below, you can see what could happen to your KiwiSaver balance when you contribute at a higher rate. These calculations are for a 25-year-old with a starting salary of $45,000 contributing to an aggressive fund, with employer contributions of 3% and the maximum annual Government contribution, assuming salary increases at 3.5% per annum. They also assume no first home withdrawal is made. As you can see, putting aside a little bit extra from each pay packet could make a big difference when you get to your 65th birthday.

Potential value of KiwiSaver account by age 65 for different contribution rates

We've produced this table using the retirement calculator on the Sorted website. 

To see what changes your choice of fund or contribution rate may make to your income in retirement, try our KiwiSaver Retirement Calculator. You can also use the tool to see what balance you may have available for a first home withdrawal.

Use the correct tax rate

The return you make on your investment is subject to tax, and the amount of tax you pay depends on your prescribed investor rate (PIR). If you haven't let us know which PIR should apply, you will be taxed at the highest level of 28%.

If you're unsure about your PIR or wish to change it, you can find out more on Inland Revenue's website.

Get the Government contribution

Did you know the Government will contribute to your KiwiSaver account, as long as you meet the relevant eligibility requirements?

If you have a KiwiSaver account, you're aged between 18 and 65, plus you live in New Zealand, then the Government will put in 50 cents for every dollar you contribute up to $521.43 each year.

That means you'll need to contribute $1,042.86 a year yourself ($20 per week) to get the maximum Government contribution. You’ll also need to meet all the relevant eligibility requirements for the full annual period to receive the maximum amount.

Find out more about government contributions.

To find out more about how to get the retirement you want, talk to a MAS adviser. Our advisers aren't paid a commission and, as a Member, you don't have to pay for their advice. To arrange a meeting with a MAS adviser, simply contact us and we'll be in touch.