AMP implores non-contributors to reconsider
AMP implores non-contributors to reconsider making regular KiwiSaver contributions
Leading life insurer and retirement savings provider AMP is currently calling for the 1 million New Zealanders* who have stopped contributing to KiwiSaver on a regular basis to consider reinstating regular contributions to their KiwiSaver accounts in order to save for their retirement.
The importance of saving for retirement should not be underestimated as Kiwis need to face the reality that they will have to bear more of the cost of their own retirement in the future.
Therese Singleton, General Manager of Investments and Insurance at AMP says: “More than 1 million KiwiSaver members across New Zealand have not made a single contribution towards their KiwiSaver account in the last 2 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,” points out Singleton.
“Many people don’t know that if you are an employee and have taken a contributions holiday or are self-employed you can set up regular or one-off contributions without having to make the minimum employee contribution of 3%. 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,” continues Singleton.
“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,” concludes Singleton.