COMMENT:

KiwiSaver or switch?

Q: I'm 45, married with three kids and on a very good income. My wife is a homemaker so I'm the primary breadwinner. We have a couple of rental properties in addition to our main house and a holiday house (around 65 per cent equity across those properties).

Also, I've been able to build up a KiwiSaver balance of about $500,000, which I'm over the moon with. I think I'm going to be in pretty good shape to retire some years in advance of 65.

Because of this, I'm considering suspending my KiwiSaver contributions and diverting those funds into a similar (growth) managed fund. That way, I won't have to wait until 65 to start drawing down on those savings. What are your thoughts on this approach? Are there any downsides?

Note that the company I work for will give me the same employer contributions either way.

A: That's great that you'll still get employer contributions to another fund. But you'll miss out on government contributions — of up to $521 a year if you put in $1042 or more.

To get around that, I suggest you move the contributions from your pay to a non-KiwiSaver growth fund, to keep access to that money. But also set up an automatic transfer from your bank account of $87 a month into KiwiSaver so you keep getting the government money. Your KiwiSaver account can fund your later retirement years.

You — and I suspect some

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