Greater numbers of first-home buyers are using KiwiSaver to get on the property ladder—but can you get into your first home without sacrificing your retirement savings? Our answer is yes.
ANZ has revealed over 40% of first-home buyers use KiwiSaver to fund their deposits—more than 7,300 people took out an average of $22,339 in the eight months to May 31, 2018. KiwiSaver is great for building savings, particularly for first-home buyers. Combine the power of two funds, and you can quickly achieve a sizeable deposit.
How much should I leave behind for retirement?
Owning a home is part of the ‘kiwi dream’, it’s also an important part of retirement planning. The sooner you buy a home, the sooner you can pay it off—giving you a valuable asset come retirement.
If you do use all your KiwiSaver, or a substantial portion of it for your deposit, here are our top three tips to catch up on retirement savings:
1. Resume your contributions as quickly as possible.
2. Increase your contributions (if the budget allows)—jumping from the basic 3% to a 4% or 5% contribution can make a big difference.
3. Put in extra lump sums when you can.
Like all big financial decisions, it’s important you work with a trusted adviser to make the best decision for you, your family and finances. We love helping first-home buyers, so give us a call today on 0800 000 517 for impartial advice on using your KiwiSaver funds.