Module 2 | Saving

Retirement & Kiwisaver

🤔 Do I really need to be thinking about my retirement right now?


The short answer: yes. Saving for something that will happen in 50 years is unexciting, I get it! But deciding to start today will make a huge difference.

If you set aside $3 per day - an amount less than the cost of a morning coffee - you could save $1095 per year. And, if you earn a yearly interest of 5% on that amount, you’ll earn $55 each year. And, investing $1095 + $55 per year for 50 years can help you save as much as $230,000 - thanks to the magic of compounding interest!

So, that’s why saving for your retirement early (like, right now) is a good idea. Where should we save this money? Glad you asked! Introducing…

KiwiSaver! 🥝

KiwiSaver is a government-funded retirement savings scheme. Essentially, it's a savings account where you can get free money from the government. You’ll be automatically enrolled into KiwiSaver after you turn 18.

★ Once you are 18, if you work, your employer is legally obliged to contribute and extra 3% of your wage towards your Kiwisaver account, if you also contribute 3%, 
★ Even better, the government will contribute a maximum of $521.43 towards your KiwiSaver for free, if you contribute at least $1042.86 every year.

🌱 Activity

If you’ve turned 18, now is the best time to see if your parents or employer have already created one for you, because you might be entitled to free money! To access your KiwiSaver account, you can call 0800 KIWISAVER, or log into ‘myIR’. (You can Learn how to set-up your myIR account in our last module.)