Starting KiwiSaver at 35 is feasible, but choose a provider with lower fees, consider a conservative investment approach for a home purchase in 3 years. Increase contributions, optimize government contributions, and trim expenses. Seek professional guidance for tailored advice and regularly review your fund's performance to stay on track.
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“I’m a 35-year-old just dipping my toes into the world of KiwiSaver, yes too late, I understand. Weekly only less than 90$ extra or abouts to save. Not a homeowner. I understand I’m late to the kiwisaver or savings or investment, so please keep that in mind. I can’t do anything about the past, but looking what i can do about the future please. My questions basically are: Who’s your KiwiSaver provider, and what’s your experience with them? If you were in my shoes and planning to buy a home in the next 3 years, which KiwiSaver provider would you recommend? I’m on a tight budget, so any advice or strategies to maximize my KiwiSaver would be incredibly helpful. Currently, I have just started contributing 6% and have stuck with the AMP default through work.”
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KiwiSaver Provider:
While starting KiwiSaver at 35 is not too late, reviewing your provider choice is crucial. Stick with AMP for now, but explore alternatives with lower fees and consider a more conservative investment strategy, given your goal to buy a home in 3 years. Conservative funds can help protect your savings from market fluctuations.
Contributions and Budgeting:
You could aim to increase your contributions, even if it’s a small amount, as every dollar counts. Don’t forget to maximize government contributions to boost your savings. Since you’re on a tight budget, cut back on unnecessary expenses and find ways to increase your income. Saving diligently will be crucial to achieving your financial goals.
Professional Guidance:
For personalised advice, consult a financial advisor specialising in KiwiSaver and investments. They can provide suitable recommendations to align your investment strategy with your specific financial situation, both for your home purchase in 3 years and your long-term retirement goals. Regularly review your fund’s performance and make adjustments as needed to stay on track with your financial objectives.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
