Now is a good time to be thinking about whether you are putting enough aside for your retirement.
A review of your long-term plans should be done on an annual basis. June is a good month for two reasons: first, it is too wet and cold outside to be doinganything more interesting; second, because you should make sure you have put enough into your KiwiSaver fund to get the maximum government tax credit.
If you are self-employed, working part-time, or are on a low income, your contributions for the year may be less than $1040. This means you will not receive the maximum tax credit of $1040 as it is a matched credit. You can check with your KiwiSaver provider what your contributions have been and if there is a shortfall it is simply a matter of making a lump sum deposit into your fund.
Your provider will tell you how best to do this and and it needs to be done well before June 30 to allow time for processing.
If you have joined KiwiSaver part-way through the year or turned 18 during the year, you are eligible for only part of the tax credit.
Depending on your goals, you may need to supplement your savings with other investments. There is a great retirement calculator at www.sorted.org.nz which will give you guidance on how much you should be saving. You will need to think about the age at which you would like to have the choice of not working and how much income you will need over and above superannuation to pay for extras such as home maintenance, replacing your car, travel and other things you may wish to do in retirement.
Liz Koh is an authorised financial adviser. The advice given here is general and does not constitute specific advice to any person. A disclosure statement can be obtained free of charge by calling 0800 273 847. www.moneymaxcoach.com
