Consider KiwiSaver

Jeremy Tauri.

If you're in business, there are lots of things that you probably write off as not applying to you. Paid sick days, four weeks' holiday a year, the opportunity to negotiate a pay rise ...

But what about KiwiSaver?

I know lots of self-employed people who say it's not worth them being part of the retirement savings scheme, because they do not have an employer to match their contributions, or their retirement fund is their business. But they are missing out on a big opportunity.

It is worth signing up for the scheme, even if you are your own boss. Self-employed people have a lot of flexibility when it comes to KiwiSaver and can contribute as little or as much as they like. If you contribute $1042 in one year, the Government will give you a $521 member tax credit. There are not many investments that offer you that sort of return.

If you have not yet bought a house, you can withdraw cash from your KiwiSaver account to help with that, and depending on your income and the cost of the house you're buying, you may qualify for a subsidy.

But one of the things that makes KiwiSaver a really good savings scheme is that you cannot touch the money, except in really unusual circumstances.

It is locked up until 65, so once you put it away, it's safe. Money that is out of sight is much less likely to be tapped when the day-to-day budget looks tight. KiwiSaver providers are also required by regulations to keep their fees "reasonable" so it's a cost-effective way of saving.

If you really do not like the idea of keeping your money squirreled away until you hit retirement, an option could be to contribute the $1042 required for the MTC, and put the rest into a different savings vehicle. Saving is something that a lot of people - businesspeople included - are not great at. If you can set up an automated system to put some money aside now, your future self will thank you.

- Jeremy Tauri is an associate at Plus Chartered Accountants