5 Benefits of Children Enrolling Into NZ KiwiSaver

Discover some of the reasons why this scheme is an excellent choice for children.

1. Long-term savings: Enrolling children in NZ KiwiSaver provides them with a head start in saving for their future. Starting early means their savings have more time to grow and compound, potentially leading to a more substantial retirement fund in the future.

2. Government contributions: The government contributes to KiwiSaver accounts, which can help boost children's savings. When they turn 18 years old, they are eligible to receive the annual government contribution of $521 p.a. every year, if they contribute at least $1043 p.a. Additionally, if a parent contributes to their child's KiwiSaver account, they may be eligible for the government's matching contribution.

3. Financial education: Enrolling children in KiwiSaver can provide a valuable opportunity for them to learn about financial planning and investment. They can learn about the importance of saving, investing, and the concept of compound interest, which can help set them up for financial success in the future.

4. Flexibility: Although KiwiSaver can only be used for buying a first home or retirement at age 65, enrolling children in KiwiSaver can still provide them with financial flexibility and security in the future. The savings they accumulate in their KiwiSaver account can be a starting point for them to consider saving in other managed funds or investment opportunities, which could potentially help them achieve their financial goals such as further education or starting their own business.

5. Access to expert advice: By enrolling children in KiwiSaver, they can have access to expert advice from financial advisors and KiwiSaver providers. This can help them make informed decisions about their investments and savings goals, providing them with valuable guidance and support along the way.

In summary, enrolling your child in KiwiSaver is a smart investment in their future. By establishing a habit of regular saving and with the potential for long-term savings, government contributions, financial education, flexibility, and access to expert advice, KiwiSaver can provide children with greater financial security; and a head start in achieving their financial goals and a more successful financial future.

Don't wait - contact us today to learn more about enrolling your child in KiwiSaver and taking the first step towards a brighter financial future!