This story was originally published on Westpac REDNews and is republished with permission.
While Kiwisaver was conceived as a retirement savings scheme, for millennials it’s mainly a first-home savings scheme, new research shows.
In a survey of more than 1000 KiwiSaver members from different schemes, 74 per cent of those aged 18 to 24 said their main reason for belonging was to save for a first home deposit.
For under-35s, 62 per cent said they were in KiwiSaver to save for a first home.
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Westpac NZ General Manager of Consumer Bank and Wealth, Simon Power, said the survey showed KiwiSaver now had a dual focus for many people.
“This reinforces how integral KiwiSaver has become for many New Zealanders. Many young people will use it once to help accumulate a deposit for first home, and then use it again to start rebuilding their nest egg for retirement.
“Owning a home is very positive to financial security, but the key is to maintain KiwiSaver contributions after purchasing their home so that their retirement savings don’t fall behind. It can be tempting to leave it for a year or two which can easily become longer. It’s important they start saving again quickly.”
The survey was carried out on behalf of Westpac by Nexus Planning and Research. Read the full article here.
