More than 3 million* New Zealanders currently have a KiwiSaver account, and making small tweaks has the potential to make a big difference to Kiwis’ finances. We’ve picked our top 4 KiwiSaver hacks to help Kiwis maximise their savings in 2025 and beyond.
1. The right fund can kick KiwiSaver savings into top gear – check you’re not in a ‘default’ fund
Almost half of all new members* start KiwiSaver in a default fund. But these funds are intended to be a ‘parking space’ until they decide which fund suits best.
An aggressive or growth fund offers better potential for long-term returns compared to a default fund (which is a balanced fund). There would be ups and downs along the way, and it will also depend on your investment timeframe.
“We always recommend talking to a KiwiSaver adviser to help you work out which fund type is best for you,” says Kristian James, Head of Distribution for Generate. “A quick chat can make a huge difference to your long-term returns.”
2. Recognise the difference small amounts can make to a KiwiSaver account balance.
Many Kiwis may think a percentage point or a few dollars here and there don’t matter. But because KiwiSaver is primarily a long-term investment, even small amounts make a big difference thanks to the power of compounding returns.
Generate KiwiSaver Scheme encourages members to explore the impact of their contributions using its online KiwiSaver calculator. By adjusting contribution rates by 1%, 2%, or more, members can see how small changes today could significantly enhance their KiwiSaver account balance at retirement.
3. Don’t miss out on $521 of annual government contribution.
Every year, KiwiSaver members aged between 18 and 65 can get an extra $521.43 from the government. To be eligible, you need to contribute at least $1,042.86 to your KiwiSaver account between July 1, 2024 and June 30, 2025.
Even if they have temporarily stopped contributing regularly to their KiwiSaver account, it’s crucial Kiwis make a one-off payment of $1,042.86 so they don’t miss out on the government contribution. This extra money can really add up by retirement.
4. When it comes to your KiwiSaver account, expert advice is invaluable.
Financial advice can pay big dividends in the long term – advised Kiwis have approximately 52% more in their KiwiSaver account than those who haven’t had advice.**
“Our Generate KiwiSaver Scheme advisers can help ensure members are investing in the right fund, getting all the benefits they’re entitled to and are on track for the best possible financial future. All it takes is a quick no-obligation chat,” says Kristian James, Head of Distribution for Generate.
Media Release 2 January 2025.