PLANNING TO USE KIWISAVER WITHDRAWAL FOR YOUR DEPOSIT?

KiwiSaver tips for first home buyers

If you’re planning to use your KiwiSaver Withdrawal to help buy your first home, or buy land and build in the future, let’s make sure you’re making the most of your KiwiSaver account now. The more you have in your KiwiSaver account, the better off you’ll be and the more options you’ll have when you’re ready to buy your first home.

 

1. SET YOUR CONTRIBUTION RATE TO A HIGHER LEVEL

The default level is a 3% contribution rate, but you can request to contribute 4% or 8% of your income. This will quickly boost your Kiwisaver balance.
 

2. CONSIDER MAKING ADDITIONAL CONTRIBUTIONS

You can make additional voluntary contributions whenever you want. These can be lump sum or regular contributions, and is easy to do by making payments when convenient through internet banking.  Check with your KiwiSaver provider about the easiest way to do this.


3. MAKE SURE YOU’RE IN THE RIGHT FUND

Most KiwiSaver schemes offer a choice of funds to invest in: Conservative, Balanced or Growth funds, and each have a different level of risk and return. Generally speaking, the higher the growth, the greater the risk. Keep in mind the potential that with a Growth fund, you can make excellent growth gains, but there could be a market downturn just as you would like to withdraw, meaning you have less funds that you had anticipated. Take into account the fees charged by a KiwiSaver provider. These have a significant effect of the level of return you get.

Take this Generate survey to find out home much you know about your KiwiSaver account.

 
3. MAKE SURE YOU’RE NOT PAYING TOO MUCH TAX

Make sure you’ve provided the correct prescribed investor rate (PIR); this is used to calculate the amount of tax you pay on your KiwiSaver.  Answer these 3 questions here to work out your PIR so you don’t pay more tax than you need to.