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Should I decrease the amount I contribute or stop contributions altogether?

Depending on your day-to-day financial circumstances and the uncertainty around how long a recession may be, it may be prudent to wind back your contributions.

Depending on your day-to-day financial circumstances and the uncertainty around how long a recession may be, it may be prudent to wind back your contributions.

Our suggestion is that this should only be done if you really need the extra money now to help with day to day expenses.  Do bear in mind, that contributing less now may mean your employer also contributes less to your account and you may miss out on the government contribution to your account too. Less contributions now will mean less retirement income in the future.   

To decrease your contributions, you will need to get in touch with your employer. If you’ve been in KiwiSaver for 12 months you can suspend contributions to your KiwiSaver account for between 3 months and 1 year.  

Information on how to pause your contributions can be found on the Inland Revenue Website

You should also consider some of the options the Government has introduced to help manage your finances if you have been impacted by Covid-19.