Problem of million non-contributing KiwiSaver members
AMP is calling for the one million New Zealanders who have stopped contributing to KiwiSaver on a regular basis to consider reinstating regular contributions in order to save for their retirement.
Tuesday, September 29th 2015, 10:02PM
Therese Singleton, general manager of investments and insurance at AMP, says: “More than one million KiwiSaver members across New Zealand have not made a single contribution towards their KiwiSaver account in the last two months. This could have a significant impact on their final retirement income when we know as little as $5 a week could mean around $30,000 upon retirement.
“We know for many individuals they may be on parental leave, are self-employed and haven’t gotten round to making a contribution yet or are struggling financially so the burden to save even a small amount seems insurmountable, however, a little now really can make a difference in the long run.”
She said many people did not know that if they were an employee who had taken a contributions holiday or a self-employed person, they could set up regular contributions or make a one-off without having to contribute the usual 3% of their salaries.
"The key to remember is that every little bit counts thanks to the wonder of compounding interest – especially as any contribution will count towards your Member Tax Credit which could mean up to an additional $521 from the Government each year.
“It’s important that people understand they are potentially missing out on the long term benefits of saving for their retirement and also missing out on their annual Member Tax Credit, so we’re just trying to encourage people to re-consider and get their KiwiSaver balance growing again.”
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