Sorted Money Month is back for 2024! From 1 to 31 August, Money Month’s awareness and engagement campaigns are coordinated by Te Ara Ahunga Ora Retirement Commission, in partnership with the financial capability community. It aims to raise New Zealander’s financial capability by helping them understand money better and improving their financial wellbeing.
<h2>Money Month and KiwiSaver</h2>
Unsure if you are in KiwiSaver? Unsure about the type of KiwiSaver investment option you're invested in? Unsure about how much you have in your KiwiSaver account?
If this sounds familiar, don’t worry. It's quite common to be in this situation. Many of us are automatically enrolled in KiwiSaver when we begin working and tend to overlook it over time.
KiwiSaver is a voluntary savings scheme set up by the government to help New Zealanders to save for their retirement. It’s an easy way to invest for our retirement years.
With KiwiSaver, your savings are invested on your behalf by the KiwiSaver provider of your choice. If you didn’t choose a provider, Inland Revenue would have assigned you to a default KiwiSaver provider and a default investment option when you first got your job.
Here are some tips to help you sort your KiwiSaver this Money Month:
1. Find out your KiwiSaver provider
To identify your KiwiSaver provider, you can easily obtain this information by reaching out to Inland Revenue. If you are a member, they will have your details on record. You can contact them at 0800 KIWISAVER or log in to you MyIR account to retrieve the information you need.
2. Choose the right KiwiSaver investment option
You have the option to select the KiwiSaver investment option in which your savings are invested. These investment options are managed by providers such as banks and investment companies, and they usually offer a variety of investment options to choose from. To determine the most suitable investment option for you with Mercer, use Mercer’s <a href="https://survey.confirmit.com.au/wix/0/p371043117030.aspx">Fund Selector Tool</a>.
3. Figure out how much to contribute
Contributions to your KiwiSaver account can come from you, your employer and the Government. You can choose to make contributions of 3%, 4%, 6%, 8% or 10% from your before-tax salary or wages. Your employer is required to contribute a minimum of 3% of your before-tax salary or wages, but they may contribute at higher rates. However, there are certain conditions where your employer is not obligated to contribute, such as if you are under 18 years old, eligible for a retirement withdrawal, or not contributing at least 3% from your pay. You can also make voluntary contributions directly to your KiwiSaver account. The Government may also contribute up to $521.43 annually to your KiwiSaver account if you meet the <a href="https://www.mercerfinancialservices.co.nz/mercer-magazine/kiwisaver--retirement/kiwiSaver-government-contribution.html">eligibility criteria</a>.
Check out <a href="https://sorted.org.nz/">Sorted's</a> website for more tips this Money Month!
Additional resources:
<ul>
<li>Use the <a href="https://supercalcs.co.nz/ris9/mst-kiwisaver">Mercer Retirement Income Simulator</a> to see what your future retirement savings could look like.</li>
<li>Unsure if you’re in the right investment option? Take Mercer’s <a href="https://survey.confirmit.com.au/wix/0/p371043117030.aspx">Fund Selector Tool</a> to see which investment option suits your situation and risk tolerance.</li>
<li>Not sure where to start or need some help with your Mercer KiwiSaver scheme or investments? Mercer’s financial advice team can help guide you through these decisions. Call us today on 0508 637 237 to arrange a call back from one of the team or <a href="https://purl.co.nz/requestFinancialAdvice/">click here</a> to request a call back from the financial advice team.</li>
</ul>
The information contained on this page is intended for general guidance only and is not personalised to you. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the <a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_ProductDisclosureStatement.pdf">product disclosure statement</a> or consult an appropriately authorised adviser.

Sorted Money Month 2024

Sorting out your finances might seem like an overwhelming task, but you can make a start with these 6 steps:
1. Set your goals
Identify short-term, medium-term and long-term goals, such as saving for a down payment on a house, funding your children's education, or starting a business. Break down these goals into actionable steps and track your progress regularly. Celebrate milestones along the way to stay motivated.
2. Get your KiwiSaver account on track
Ensure you're enrolled in KiwiSaver and contribute regularly. Take advantage of employer contributions and consider increasing your own contributions to maximise the benefits. Review your investment options periodically to ensure they align with your long-term goals.
3. Tackle your debt
Start by creating a comprehensive list of all your debts, including credit cards, personal loans and student loans. Prioritise paying off high-interest debts first while making minimum payments on others. Consider consolidating your debts and develop a budget that allows for debt repayment while still meeting your essential expenses.
4. Start an emergency fund
Life is full of unexpected events, such as medical emergencies, car repairs, or a sudden job loss. Having a dedicated fund to cover these unforeseen expenses can provide peace of mind and prevent you from relying on credit cards or loans.
5. Work out your retirement number
Determine your retirement goals and estimate the amount of money you'll need to maintain your desired lifestyle. Consider factors such as inflation, healthcare costs and potential sources of retirement income. Speak with a financial adviser to develop a personalised retirement plan and explore investment options that align with your goals.
6. Cover your people, money and things
Evaluate your insurance coverage, including life, health, disability and home insurance. Ensure your policies adequately protect your assets and provide financial security in case of emergencies. Review your coverage periodically to account for any changes in your circumstances.
The information contained on this page is intended for general guidance only and is not personalised to you. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the <a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_ProductDisclosureStatement.pdf">product disclosure statement</a> or consult an appropriately authorised adviser.

6 steps to get your money Sorted

If you have worked in Australia anytime since 1992, then you are likely to have an Aussie Super account. You can bring that money to New Zealand and invest it into your KiwiSaver account as part of the Trans-Tasman portability arrangement.
You will need to apply directly to the ATO to help you find and bring back your 'lost' Australian Super to New Zealand. You can apply at any time to the ATO, requesting to transfer what they are holding to your KiwiSaver account. Application forms can be downloaded <a href="https://www.ato.gov.au/forms-and-instructions/superannuation-searching-for-lost-superannuation#Completeapaperform">here</a>, then completed and mailed to the ATO.
<center>
<a style="margin-bottom:1em;" class="ausarticle button" href="https://www.ato.gov.au/forms-and-instructions/superannuation-searching-for-lost-superannuation#Completeapaperform">Apply to the ATO</a></center>
<h2>You will need to include a few details when applying to the ATO</h2>
<ol>
<li>Name of KiwiSaver scheme</li>
<li>New Zealand business number of the Scheme</li>
<li>Your member number</li>
</ol>
<ul>
<li>
It is important to note once you have transferred your Australian Super to New Zealand you cannot reverse the payment unless you decide to permanently move back to Australia.
</li>
<li>
You can only transfer Australian funds back into KiwiSaver account in your name.
</li>
<li>
While your KiwiSaver money generally cannot be accessed until you turn 65, you can access your Australian funds transferred to New Zealand from age 60 and if you satisfy the Australian definition of retirement at that age.
</li>
<li>
Transferred Australian funds cannot be used to assist with the purchase of a first home, nor can they be transferred to another country.
</li>
<li>
There is no tax to pay on the transferred balance prior to it being invested in your KiwiSaver account, however, once it is invested in KiwiSaver it will be subject to New Zealand tax just like your KiwiSaver investment earnings are.
</li>
</ul>
You may need to be aware of a few details. For more information, <a href="https://www.mercerfinancialservices.co.nz/mercer-magazine/kiwisaver--retirement/transfer-your-australian-super.html">click here</a>.
<h2>Extra resources</h2>
<center>
<a style="margin-bottom:1em;" class="ausarticle button" href="https://www.ato.gov.au/forms-and-instructions/superannuation-searching-for-lost-superannuation#Completeapaperform">ATO website</a></center>
<center>
<a style="margin-bottom:1em;" class="ausarticle button" href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_TransTasmanPortabilityGuide.pdf">Trans-Tasman Portability Guide</a></center>
<center>
<a style="margin-bottom:1em;" class="ausarticle button" href="https://www.mercerfinancialservices.co.nz/mercer-magazine/kiwisaver--retirement/transfer-your-australian-super.html">Transferring Australian Super to NZ</a></center>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Transfer Your Australian Super

If you want to maximise the KiwiSaver Government Contribution, please remember to check how much you have contributed to date and top up your KiwiSaver account before 30 June 2024 if you need to.
When you contribute $1 to your KiwiSaver account, the Government matches it with 50 cents. This is known as the Government Contribution and it’s an excellent way to enhance your KiwiSaver savings. To learn more about how the Government Contribution works, please visit <a href="https://www.mercerfinancialservices.co.nz/mercer-magazine/kiwisaver--retirement/kiwiSaver-government-contribution.html">www.mercerfinancialservices.co.nz</a>.
<center>
The maximum you may be entitled to is $521.43 per annum.
To receive the full amount, you need to have contributed at least $1,042.86 to your KiwiSaver account during KiwiSaver financial year (between 1 July and 30 June). Some criteria apply.
</center>

If you are employed and are contributing from your pay, some payments might still be on their way and haven’t been processed yet. You can check myIR account at <a href="https://www.ird.govt.nz/">www.ird.govt.nz</a> to see these payments.
<center>
<a style="margin-bottom:1em;" class="ausarticle button" href="https://www.mercerfinancialservices.co.nz/mercer-magazine/kiwisaver--retirement/kiwiSaver-government-contribution.html">Learn more</a></center>
<h2>How do I pay into my KiwiSaver account?</h2>
To ensure you don’t miss out on the Government contribution, make sure to top up your KiwiSaver account before 30 June 2024. You can set up regular or lump sum contributions directly into your KiwiSaver account from your online banking system.
If you are employed, we suggest reviewing your contribution rate to see if it’s enough to qualify for the maximum Government contribution amount. You can increase it to maximise this benefit. The rates at which you can contribute from your pay are 3%, 4%, 6%, 8% or 10%.
<h2>Need a hand?</h2>
Get in touch with a Mercer Financial Adviser.
Call: <a href="tel:0508 637 237">0508 637 237</a> (if you are calling from overseas: <a href="tel:+61 3 8306 0971">+61 3 8306 0971</a>) from 9.00am - 7.00pm Monday – Friday.
We also recommend you speak to one of the team before or straight after you <a href="https://purl.co.nz/MercerKiwisaver-Eform-2G/welcome.html">switch your KiwiSaver investment to Mercer</a>. Sometimes a simple conversation can make a world of difference for your financial future.
Alternatively, you can also fill out this online form for a call back from Mercer’s financial advice team <a href="https://purl.co.nz/requestFinancialAdvice/">https://purl.co.nz/requestFinancialAdvice/</a>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Government Contribution: Bonus Money

Whether it’s saving for a first home, your retirement or for a rainy day, investing wisely can help get you there - and we’re here to help you unpack it all.
The passive income that investments can provide can help us steer our own financial future, achieve our goals and have more security.
You don’t have to be a pro - or have millions - to get going. Small, consistent investments can create strong returns in the long run.
<h2>Learning about the types of investments</h2>
Types of investments can include real estate, retirement funds like KiwiSaver, shares, bonds - and more.
Common investments you may want to find out more about are managed funds, exchange-traded funds (ETFs) and index funds.
<h2>Managed Funds</h2>
Managed funds (like those we offer here at <a href="https://www.multimanager.mercer.co.nz/funds/overview.html">Mercer</a>), can provide you with the convenience factor and a hands-off approach to investing. Professional fund managers make decisions on behalf of investors, these professionals actively monitor and adjust the fund's holdings to seek the best returns. This allows investors to benefit from professional expertise and resources without the need for the DIY approach. Regulatory oversight makes sure everything is transparent and protects investors, giving them peace of mind.
<h2>Exchange-Traded Funds (ETFs) and Index Funds: An Overview</h2>
Index funds and ETFs are both investment vehicles that aim to track the performance of a specific index such as the S&#x26;P 500, though an ETF may sometimes be actively managed. An ETF is an investment fund that is traded on stock exchanges, similar to individual stocks. Both offer diversification, liquidity, and transparency, making them a popular choice for investors looking for a simple and efficient way to gain exposure to a wide range of assets.
Some great resources (other than the Table!) include:
<ul>
<li><a href="https://www.moneyhub.co.nz/investing-saving.html">MoneyHub NZ</a></li>
<li><a href="https://sorted.org.nz/guides/saving-and-investing/about-investing">Sorted</a></li>
</ul>
<h2>Unleashing the power of compound interest</h2>
Compound interest is one of investing’s major superpowers that can turn small, regular investments into substantial savings over time. Working away in the background, compound interest quietly grows your money over time. This happens as a result of your returns being reinvested, allowing them to increase even more as time goes by. The earlier you start, the more powerful this force becomes.
The amount of compound interest you will earn depends on various factors, including your salary, contribution rates, and the specific investment you choose. While everyone receives the same interest rate, the dollar amount of interest earned will vary based on individual circumstances. By starting, you can watch the magic happen!
The earlier you start, the more it will pay off in the long run. No matter where you’re at in your life stage, even small contributions can help you reap the benefits of compound interest in the long term. <a href="https://seatatthetable.co.nz/articles/money/compound-interest">Read more about compound interest here</a>.
It’s also a common misconception that you need a fortune to start investing to begin with. You don’t! You can start small. The most important thing is to be consistent. By putting away just a little bit of money each week, your financial wellbeing will be on point down the track.
Think it’s too risky? It’s understandable - there will always be a certain level of risk involved. However, by seeking financial advice, researching the options and choosing the right diverse investments for your personal situation, you can mitigate much of this risk.
<h2>Boosting your confidence and getting financially lit</h2>
Investing is not exclusive to men or financial gurus - it's for everyone. That includes you.
Women belong in the investment world, without question.
Talk to the women in your life and see how they approach their financial wellbeing. Trade tips, ask questions, and get into the nitty gritty of it all. There’s no shame in talking about money - we all need it and deserve it, and collectively, we have so much wisdom to share. <a href="https://seatatthetable.co.nz/articles">Read articles here at the Table</a>.
Take the opportunity of investing to empower yourself and shape your own future. The time to start is now.
You can contact a Mercer financial adviser <a href="https://www.mercerfinancialservices.co.nz/contact-us.html">here to talk all things KiwiSaver</a>. We also recommend you speak to one of the team before or straight after you switch your KiwiSaver investment to Mercer.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Demystifying investment: how to make your money work for you

When building up our financial wellbeing and wealth, insurance is super useful. Yes – there’s a cost – but consider the cost of not having insurance when you really need it.
If you’re new to insurance, let’s decipher different types of coverage and make sense of complex policy jargon.

<h2>Step 1 – Understanding the different types of insurance</h2>
Wouldn’t it be easy if there was one type of insurance that covered everything! But if you’re overwhelmed by the amount of options out there, start with the basics. Common types of insurance include:
<ul>
<li>Health insurance: health is wealth! In New Zealand, health insurance covers medical expenses that arise from using private healthcare, helping us access care quickly through the provider of your choice.</li>
<li>Life insurance: this provides financial security for loved ones in the event of the policyholder's passing. It’s designed to replace lost income, cover funeral expenses, pay off debts, and maintain the beneficiary’s standard of living.</li>
<li>Car insurance: this protects against financial losses resulting from car accidents, theft, or damage to vehicles.</li>
<li>House insurance: house or homeowner insurance covers damage to the home due to perils such as fire, vandalism, or natural disasters.</li>
<li>Contents insurance: or renter’s insurance offers similar protections for tenants, covering personal belongings and liability in case of accidents.</li>
</ul>
Travel insurance, income protection insurance and pet insurance are other types of insurance that can be useful too.
Once you’re aware of the policies available, take stock of your personal situation and think about what you would like covered if the worst were to happen.
<h2>Step 2 – Selecting the right level of coverage</h2>
Insurance goes well beyond a one-size-fits-all approach. Providers offer varying plans and levels of coverage to suit your individual needs, finances and levels of risk tolerance.
Important things to review when choosing a plan are:
<ul>
<li>Your own priorities: if you have no dependents, you may not consider life insurance a necessity, but if you own a home and a car you will want those protected.</li>
<li>Policy features: with each policy you’re considering, look at its features and exclusions, maximum claim levels, excess, or co-payments, and waiting periods.</li>
<li>Your budget: ideally, we’d all have insurance for everything relevant to our lives. However, this isn’t always realistic. Make sure that the areas at the top of your priority list are covered first.</li>
<li>Research providers: Don’t just sign with the first company that pops up on Google. Research each company’s financial strength rating, length of operations and reviews. Your best pick will be a reputable insurer with a solid track record.</li>
<li>Shop around: if you find an insurance company offering a lower premium, don’t be afraid to show another company that quote! They may match it. Many companies also offer discounts for taking out multiple policies, getting you better value for money.</li>
</ul>
<h2>Step 3 – Learning how to navigate claims</h2>
Signed on the dotted line and now you need to make a claim? A few tips can make this process easier and save you from back-and-forth with your provider.
<ul>
<li>Download your insurer’s app: many companies now have apps that help you manage your policy and claims. This can make the process quicker and more accessible.</li>
<li>Brush up on your policy regularly: sometimes your provider may change terms when your plan is renewed each year. Before you pay for something you plan to claim for, double-check it’s going to be covered.</li>
<li>Keep the receipts: when you make a claim, your insurance company is going to want receipts! For a smoother claims process, create a file of important documents including your policy, receipts, claim forms and correspondence with your insurer. To be extra safe, have digital and hard-copy versions.</li>
<li>Always make your claim as quickly as possible: following your insurer’s guidelines on what you need to include to have your claim paid out without a glitch.</li>
</ul>
We work hard and deserve financial wellness – so don’t leave yourself vulnerable to life’s unpredictable twists and turns.
The right kinds of insurance can act as a comfortable financial cushion, protecting our financial wellbeing, ourselves, and our assets.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

How to protect yourself and your wealth with insurance in 3 steps

Enrolling children in KiwiSaver at a young age can help instil good saving habits, expose them to the world of investing and provide them with a head start on their financial journey. However, it is essential to understand the advantages and disadvantages of KiwiSaver for kids to make an informed decision and maximise the long-term benefits.
<h2>Advantage of KiwiSaver for Kids:</h2>
<ol>
<li>
Free to Join: One of the significant advantages of KiwiSaver for kids is that it is free to join. There are no signup fees, making it accessible to all families. However, it is important to note that ongoing management and membership fees apply, which are automatically deducted from the KiwiSaver funds.
</li>
<li>
Benefits for Buying a House: Once your child has been a member of KiwiSaver for three years, they may be eligible to withdraw a portion of their savings to assist with purchasing their first home. Your child’s KiwiSaver investment could make a significant difference in helping them achieve their homeownership goals in the future. To read more about first home withdrawals read our guide <a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_First_Home_Withdrawal_Guide.pdf">here.</a>
</li>
<li>
Financial Education: KiwiSaver schemes provide regular member statements, typically sent annually. These statements offer valuable information about the returns, fees, and performance of the fund. By reading and understanding these statements, children can develop a foundation of investment knowledge and gain a better understanding of how their savings are growing.
</li>
<li>
Teaches Good Habits: Joining KiwiSaver at a young age helps children develop good saving habits early on. By starting early and contributing regularly, children can learn the importance of saving and investing for their future.
</li>
<li>
Flexibility to Switch Funds: KiwiSaver offers the flexibility to switch funds if needed. Thousands of people switch KiwiSaver providers every month, and the process takes less than two minutes. There are no limits on changing funds, and no fees are charged for switching. This flexibility allows parents and guardians to choose the best investment strategy for their child's changing needs and risk tolerance. Not sure where to invest? Use our Fund Selector Tool <a href="https://survey.confirmit.com.au/wix/0/p371043117030.aspx">here,</a> to help you better understand how your approach to risk translates to the investment options available to you.
</li>
<li>
Compound Interest: KiwiSaver contributions for children can accumulate over time, teaching them the concept of compound interest. Even small regular contributions can grow significantly over several decades.
</li>
</ol>
<h2>Disadvantages of KiwiSaver for Kids:</h2>
Irreversible Commitment: Once a child is enrolled in KiwiSaver, it is challenging to opt-out. You may have the option to opt out in the following situations:
<ul>
<li>If your employer mistakenly enrolled you before you turned 18.</li>
<li>If you were enrolled without the consent of your guardians and you did not give your consent to join KiwiSaver.</li>
<li>If you are under 16 years old and wish to opt out, with the agreement of your guardian.</li>
</ul>

You may not have the option to opt out in the following situations:
<ul>
<li>If you personally contacted a provider and selected your own investment scheme.</li>
<li>If your guardians enrolled you in KiwiSaver or provided consent for you to join.</li>
<li>If you voluntarily opted in to KiwiSaver immediately after turning 18.</li>
</ul>
<ol>
<li>
No Employer Contributions: Children under 18 do not receive employer contributions to their KiwiSaver fund. Unlike adults, who have a percentage of their wages directed to KiwiSaver, children's savings are limited to personal contributions.
</li>
<li>
No Government Contributions: Government contributions to KiwiSaver start at age 18. Children miss out on this additional benefit, which can be as high as $521 per year for those who contribute $1,042 or more annually between 1 July – 30 June.
</li>
<li>
Fees: Most KiwiSaver schemes charge membership and management fees, even for children with low savings balances. These fees can impact the overall growth of the savings. However, it is worth noting that some funds waive these fees for children, so it is essential to explore different KiwiSaver options to find the most cost-effective solution.
</li>
<li>
Possibility of Low Returns: Depending on the fund's performance, fees may outweigh the returns, making it challenging for the savings to grow.
</li>
<li>
Locked-In Savings: KiwiSaver funds are generally inaccessible until retirement, except for a first-home withdrawal. This means that children cannot use their KiwiSaver savings for other purposes such as university expenses or buying a car. The locked-in nature of KiwiSaver differentiates it from other savings schemes and requires careful consideration of long-term financial goals.
</li>
</ol>
If you would like to discuss your investment options in Mercer’s KiwiSaver scheme or FlexiSaver, please speak with one of our Financial Advice team members. You can fill out this online form for a no obligation call back from Mercer’s financial advice team <a href="https://purl.co.nz/requestFinancialAdvice/">https://purl.co.nz/requestFinancialAdvice/.</a>
Mercer also publishes monthly investment performance and market updates, available on our website. To read our latest monthly report please click <a href="https://www.mercerfinancialservices.co.nz/documents.html">here.</a>
Additional resources
<ul>
<li><a href="https://survey.confirmit.com.au/wix/0/p371043117030.aspx">Fund Selector</a> - to work our your risk appetite.</li>
<li><a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/MSTNZ_FAP_Full_Disclosure.pdf">Financial Advice Provider – Disclosure Statement</a></li>
<li>Estimate your retirement savings and income– Use our <a href="https://supercalcs.co.nz/ris9/mst-kiwisaver">Retirement Income Simulator</a> to see what your retirement could be worth.</li>
</ul>
<hr>
The information contained in this article is intended for general guidance only. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the Product Disclosure Statement or consult an appropriately qualified financial adviser.
<hr>

KiwiSaver for Kids

Let’s dive into the wonderful world of budgeting, while the "B" word might sound daunting it's a journey worth embarking on. Budgeting is not all about clipping coupons or feeling restricted. It's about empowering ourselves, taking charge of our financial destinies, and living life to the fullest - without breaking the bank.
Budgeting or knowing where your money is going will help give you clarity and ultimately freedom. It gives you a clear roadmap to follow, helping you prioritise what truly matters.
By keeping track of your spending, you can avoid pesky "where did all my money go?" moments and retain control over your financial future.
<h2>How can a budget help me?</h2>
Picture this: you're planning a fabulous holiday, searching for your first home, or envisioning the retirement of your dreams.
How can you make these come true - without dipping into your emergency fund or maxing out your credit cards?
Here’s some great benefits of creating a budget:
<ul>
<li>Guiding you in managing your money and maintaining control over your finances - here’s to being independent and having security.</li>
<li>Outlining your income and how you plan to spend and save it - being mindful about your money and planning for the future is priceless.</li>
<li>Enabling you to direct your money toward your goals - whether it’s that vacay, house or retirement by the beach.</li>
<li>Serving as one of the most effective tools for maximising your financial resources and making financial progress - let’s get those gains!</li>
</ul>
In essence: What kind of budget should I have?
There are many ways to build a budget - so there’s something for every personality type. If you’re a whiz with Excel, why not draw up your own template? But if you need a bit more guidance, check out the <a href="https://sorted.org.nz/tool/budgeting-tool#/welcome">Budgeting Tool on Sorted</a> or browse through the many budgeting apps available in the App Store or Google Play.
One popular budget model is the 50/30/20 rule. Following this model, you allocate 50% of your income on ‘’needs’’ - essential expenses like rent or a mortgage, groceries, utility bills, debt repayments, insurance and transport.
Then the next 30% of your income goes towards ‘’wants’’. These might include things like your Netflix subscription, dinners out, shopping or holidays.
Finally, the remaining 20% is put into savings. That can include a standard savings account, an emergency fund, and of course, a KiwiSaver account that can help you plan for a thriving retirement. You can contact a Mercer financial adviser <a href="https://www.mercerfinancialservices.co.nz/contact-us.html">here to talk all things KiwiSaver.</a> We also recommend you speak to one of the team before or straight after you switch your KiwiSaver investment to Mercer.
Check out the graph below to see how the 50/30/20 budgeting model works.
<img src="/images/articles/20240209/give-yourself-a-money-makeover/Budgeting_Diagram-web.webp" alt="Budget-Diagram">
<h2>Crunch the numbers and make the leap</h2>
<ol>
<li>
First things first, to build your budget, gather all your financial information - payslips, bills, invoices and expenses, and record them in your budget document, template or app.
It’s amazing how seeing the numbers on paper brings them to life. It can be confronting to see how much you’re spending on UberEats - but also motivating to see all the information in one place. From this moment, you can choose how to move forward - and that’s pretty empowering.
Keep in mind that budgeting is not all about missing out - it’s about finding ways to treat yourself while ensuring your financial future is secure.
</li>
<li>
Track your income and outgoings, think about your ultimate goals. Whether it’s buying that apartment or retiring in a cosy cottage, keeping the end game in mind can really focus your budget. Having a purpose makes it that much easier to stick to.
</li>
<li>
Once you’re in the swing of using your budget, be sure to make time for regular check-ins. Are you consistently going over or under budget? Are you right on target?It’s normal to see some variance depending on what’s happening in life - so don’t beat yourself up if you don’t nail it right away. Give yourself the grace of flexibility as you begin. The fact that you’re already thinking about your spending is already a huge step.
And when you do reach a goal or milestone - be sure to celebrate your success!
Remember, budgeting is not just about the dollars and cents. It’s about embracing financial freedom and the way this can empower us as women. You deserve to give yourself a money makeover and reap the beautiful benefits of a budget - so why not get started today?
</li>
</ol>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Give yourself a money makeover: the beauty of budgeting for women

Retirement: that long-awaited permanent holiday phase of life where you can relax, unwind and fill your years with special memories. You will have earnt it! But to get there and live the retirement of your dreams, you need to invest a little time and energy into planning for your future. Trust us, it will be worth it! The earlier you start planning, the more you will be able to seize the incredible opportunities that retirement offers - even if right now, it all seems so far away.
Whether you’re 28 or 58, you can always benefit from looking ahead and crunching some numbers. You don’t need to be an accounting genius either! Start by checking out the following tips on how you can begin to slay your financial goals and get yourself set up for the retirement you deserve.
<h2>How much should I aim to have saved for retirement?</h2>

This is the golden question - and there is no one perfect answer! However, taking a peek at the table below might help you envision the level of savings needed for a comfortable retirement.
<a href="https://www.massey.ac.nz/documents/1554/new-zealand-retirement-expenditure-guidelines-2023.pdf">The Massey University New Zealand Retirement Expenditure Guidelines</a> have provided the basis for this table.
<img src="/images/articles/20240202/Retirement/Mercer-Retirement-tb.webp" alt="Retirement">
There are two different categories pictured - “no frills” and “choices” retirements. You’ll see that there is quite a difference between the sums required for each - but don’t let that intimidate you! For a retirement where you can enjoy some luxuries like overseas holidays, you’ll want to aim for the “choices” option. It might take a little bit more work in the beginning - but it will be so worth it when you can treat yourself, right?
<h2>Why is planning for retirement so important for women?</h2>
Whether you end up retiring as a couple or solo, it’s vital you get amongst the retirement planning process. Why? Think of it as another frontier where you can embrace your independence and take control of not only your finances but also your whole future. That’s powerful stuff.
Despite significant progress being made, the gender pay gap is still an ongoing challenge in today's world. Savvy retirement planning can help you bridge this gap. Investing wisely, maximising your income potential, and making informed financial decisions can help you level the playing field and chart a new path.
Also, don’t forget: in general, women have a longer life expectancy than men! Sorry lads - but this gift of longevity means us ladies tend to have a bit more time to enjoy our passions throughout retirement. That extra time, however, means a little bit more planning is on the cards. By getting started with saving and investing early, we can confidently embrace a longer life filled with joy, purpose and security. Now that’s some valuable peace of mind.
<h2>How can I prepare my finances for retirement?</h2>
If you haven’t already enrolled in KiwiSaver, now is the time! When you enter the KiwiSaver scheme, you can choose to contribute 3%, 4%, 6%, 8% or 10% of your pay into your retirement fund.
Joining KiwiSaver makes retirement saving so simple. Your contributions will automatically be moved out of your pay and into your KiwiSaver account, so you won’t even think about it or notice it’s gone! Plus, in addition to using it for retirement, you can also withdraw these funds to purchase your first home.
You can contact a Mercer financial adviser <a href="https://www.mercerfinancialservices.co.nz/contact-us.html">here to talk all things KiwiSaver</a>. We also recommend you speak to one of the team before or straight after you switch your KiwiSaver investment to Mercer. They can help you figure out how much your unique retirement goals may require - and how to get there.
Let’s turn societal expectations on their heads - no matter if you take time off traditional work to perform a caregiver role or climb the career ladder right to the top, you can plan for an incredible and fulfilling retirement. The possibilities are so exciting!
<h2>The final word</h2>
Ladies, don’t think of financial retirement planning as just an option - it’s a necessity. Jump on board this empowering journey towards securing your independence and shaping your financial destiny. By taking control of your money and planning for the future, you can break barriers, narrow the gender pay gap, and build a brighter, more secure world for yourself - and others.
Want to help empower other gals in your life to do the same? Share this article with your whanau and friends to help foster more financial wellbeing for women. Together, we can make it happen.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

How to plan for your dream retirement

We live in such a beautiful country here in New Zealand, with its stunning landscapes, welcoming culture, and high quality of life, it is a dream destination for many. However, as enticing as it may be, the cost of living here has been a point of concern for both residents and newcomers. In this article, we'll explore the various factors contributing to the high cost of living in New Zealand and outline practical steps to battle these challenges.
<h2>Understanding the Cost of Living: Factors at play</h2>
Several factors contribute to the relatively high cost of living in New Zealand:
<ol>
<li>
Housing Costs: Housing is one of the most significant contributors to the high cost of living. A combination of factors, including limited housing supply, population growth and demand from both locals and international investors, has driven up house prices in cities like Auckland and Wellington.
</li>
<li>
Utilities and Transportation: Utility costs, including electricity, water, and internet, can be relatively high. Additionally, our remote location means that imported goods and fuel tend to be expensive, leading to higher transportation costs.
</li>
<li>
Food and Goods: The country's isolation impacts the cost of imported goods, leading to higher prices for everyday items and groceries.
</li>
<li>
Currency Exchange Rates: Fluctuations in currency exchange rates can affect the cost of living as they impact the cost of goods.
</li>
</ol>
<h2>Steps to battle the high cost of living:</h2>
<ol>
<li>
Budgeting: Creating a comprehensive budget that outlines your income and expenses can help you better manage your finances. Identify areas where you can cut back or make more economical choices.
</li>
<li>
Housing Alternatives: Instead of opting for traditional housing, consider shared accommodations, flatting, or living in less expensive suburbs. Research thoroughly before committing to a rental agreement.
</li>
<li>
Transportation Choices: Utilise public transportation, carpooling, cycling, or walking whenever possible to reduce transportation expenses. Our cities are known for our bike-friendly infrastructure.
</li>
<li>
Cook at Home: Eating out frequently can strain your budget. Cooking meals at home using locally sourced ingredients can be cost-effective and healthier.
</li>
<li>
Explore Free and Low-Cost Activities: We are famous for our natural beauty, much of which can be explored without spending a dime. Enjoy hiking, picnics and outdoor adventures that won't break the bank.
</li>
<li>
Financial Planning: Psst we offer free one-on-one financial advice! You can contact a Mercer financial adviser <a href="https://www.mercerfinancialservices.co.nz/contact-us.html">here to talk all things KiwiSaver.</a> We also recommend you speak to one of the team before or straight after you switch your KiwiSaver investment to Mercer.
</li>
<li>
Earn Extra Income: Consider taking up part-time or freelance work to supplement your income. The gig economy offers numerous opportunities to earn extra money. We know it’s not ideal but sometimes needs, must!
</li>
<li>
Skill Enhancement: Invest in improving your skills and qualifications, which can lead to better job opportunities and higher earning potential in the long run.
</li>
<li>
Long-Term Planning: If you're considering settling in New Zealand, think about long-term goals such as homeownership. Work towards building a stable financial foundation that allows you to invest wisely and secure your future.
</li>
<li>
Look for opportunities in savings: How to bargain spend
</li>
</ol>
If you happen to stumble upon any deals or free trials, seize the opportunity! Who doesn't love a good freebie, right? Whether it's a sale at your favourite clothing store, special offers at a fancy restaurant, or signing up for trial packages, there are plenty of chances to save some serious cash. Just be sure to give those terms and conditions a read before committing to anything.
And speaking of savvy shopping, don't forget to mark your calendar for these money-saving dates:
<ul>
<li>Black Friday (24th November): Keep an eye out for online and in-store sales on electronics, fashion and appliances.</li>
<li>End-of-season sales (dependent on season): Timing varies, but generally, shop at the end of summer (around March) for discounts on summer clothing and gear and at the end of winter (around September) for winter-related items.</li>
<li>Waitangi Day (February 6th): Look for sales on outdoor gear, barbecues, and summer clothing.</li>
<li>Valentine's Day (February 14th): Find deals on romantic gifts like chocolates, flowers, and jewellery in the lead-up to Valentine's Day. But remember things on the day can be more expensive than usual, so planning ahead will go along way.</li>
<li>Mother's Day (Second Sunday in May) and Father’s Day (First Sunday of September): Begin shopping a few weeks before these occasions for gift deals, including spa packages, jewellery, tools, gadgets, and outdoor equipment. Or make your own!</li>
<li>Easter (varies, late March to late April): Hunt for Easter-related sales, especially on chocolates, hot cross buns, and holiday decorations.</li>
<li>Boxing Day (December 26th): Ideal for post-Christmas sales on a wide range of items, from electronics to clothing.</li>
<li>New Year's (January 1st): Seek out New Year's clearance sales on party supplies, summer clothing and outdoor gear.</li>
</ul>
*Remember that sale timings may vary from store to store, so it's always a good idea to check with your favourite retailers for specific deals and promotions.
You can make a positive impact on your spending by keeping these dates in mind. Depending on the specific dates, it might be ideal to shop just before or immediately after them. Happy saving!
Explore what's happening in your local area in New Zealand and you'll likely find some awesome weekly deals at nearby restaurants, cafes and even gyms. Plus, there are popular stores and food providers offering great discounts on groceries and food items. For instance, check out The Wonky Box which is a fantastic subscription service that delivers fruits and vegetables that might otherwise go to waste. They rescue odd-looking and surplus produce from local farmers and bring it directly to households across New Zealand's North Island.
*Just to be clear, we're not endorsing or promoting any specific products or services.
While living costs in New Zealand can be tough, don't let them discourage you. With some proactive steps, smart money moves and informed choices and a little planning and determination, you can strike a balance between living well and staying financially stable.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

The Cost of Living in New Zealand: Your Survival Guide

<h2>Women: why our money mindset matters</h2>
Money and mindsets – what do they have in common? Hint: it’s not just that they both start with the letter M!
The real answer is both money and mindsets require nurturing and attention to grow and produce positive results. With that said –what exactly is a money mindset?
<h3>Money mindsets explained</h3>
Whether we’re aware of it or not, we all have existing mindsets about money. These mindsets are our beliefs and attitudes about all things related to cold hard cash. That’s everything from how we spend and save to how we invest, what we think we deserve and how we feel about our financial futures.
These beliefs are usually formed during childhood through the experiences of our upbringing and the family and friends we have around us.
They’re important as they can influence the actions we take with money. A negative - or scarcity - mindset can lead to the belief there is never going to be enough money available, which can conversely lead to overspending and financial anxiety. On the other hand, a positive – or abundance - mindset can encourage saving, investing and nurturing a sense of financial security.
<h3>Why is developing a positive money mindset important for women?</h3>
A positive money mindset is a bit like a good investment - it can lead to greater financial abundance.
However, around the world, women still struggle with a pay gap and other structural inequalities that position men as the ‘’earners’’.
While improvements are being made, many women still grow up absorbing messaging from society that we aren’t ‘’as good with money as men’’ or that we have to choose between financial independence and having a family. That money just isn’t ‘’our thing’’. This can lead to a whole lot of self-doubt.
But we don’t have to tell you that men aren’t inherently better with money than women – they’ve just had a big head start.
We have some good news, though. By analysing your beliefs and attitudes around money and where they come from, you can start to create new ones that shift the dial.
<h3>Tips for forming a positive money mindset</h3>
It’s time to start building a healthy relationship with money – and this often starts with believing you deserve it. And you do!
Check out a few other handy tips for building a positive money below. Which ones resonate for you?
<ul>
<li>Don’t beat yourself up. Hands up if you’ve ever put off thinking about finances, gotten into debt or made a financial decision you regret. That's most of us with our arms in the air! Try not to beat yourself up about it because this can trap you in limiting beliefs. No-one is perfect and you can’t change the past – but you can decide what you do next.</li>
<li>Challenge negative or limiting beliefs. If you find your brain slipping back into thinking patterns like ‘’I’m just not good with money’’. Don’t let those thoughts gain traction. Remember you are capable – and you deserve financial wellness.</li>
<li>Find the wins. Every negative belief you challenge is a great victory. Every step you take to create the financial future you want – such as making a budget or simply having an open conversation about money matters – helps to strengthen your new positive money mindset. Celebrate those milestones along the way.</li>
<li>Speak up and get support. You don’t have to do it all alone. Start conversations with loved ones in your life – often they’re full of pearls of wisdom from their own experiences. Engaging in these types of conversations helps to normalise talking about financial wellness and creates a safe space for those seeking knowledge and support. Find resources, such as us here at the Table, to help demystify the world of finance as you begin your journey.</li>
</ul>
Nurturing a positive money mindset is a key part of getting financially literate and building the financial future you deserve. So go on, get to smashing those negative beliefs and have faith that you can do it. A happier, more financially abundant future awaits.
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz.</a>

Why our money mindset matters

<h3>What to expect from your financial advice session</h3>
Want to unlock that treasure chest of your future and take a peek at what’s inside? Then it’s time to speak up! Talking about money is a perfect place to start when it comes to getting financially lit.
If you’re thinking about buying a first home or planning for your retirement, you probably have a lot of questions. That’s why we’ve made it easy for you to access free one-on-one financial advice sessions. You can contact a Mercer financial adviser <a href="https://www.mercerfinancialservices.co.nz/contact-us.html#:~:text=If%20you%20need%20further%20assistance%20logging%20in%20to,Toll%20free%3A%200508%20MERCER%20Call%200508%20637%20237">here to talk all things KiwiSaver.</a> We also recommend you speak to one of the team before or straight after you switch your KiwiSaver investment to Mercer. Sometimes a simple conversation can make a world of difference for your financial future. After all, they say money talks – so we should, too!
Here’s what you can expect when you’re getting down to biz with one of our financial advisers.
<h3>What you can chat about in your financial advice session</h3>
If you have a burning question in the following areas, our friendly financial advisers can help with an informative chat. Keep in mind they won’t be able to tell you exactly what to do (that would be too easy, right?!) but they will be able to give you some info and insights to help you make the right choices for your life stage and circumstances.
In your session, you can talk about the below:
<ul>
<li>Joining a KiwiSaver scheme – how do you choose?</li>
<li>Investment funds – which one is the best for you?</li>
<li>Investment timeframes – how do these work and what impact they have on your future outcomes?</li>
<li>Investment objectives – whatever your goal is, a conversation is the best starting point for finding a path towards it.</li>
<li>KiwiSaver contribution rates – which level can help you best reach your goals?</li>
<li>First home purchases – a first home purchase is a massive life milestone. If you have a dream, chat with an adviser about how you can make it a reality.</li>
<li>Retirement planning – while it’s never too late to start planning for retirement, it’s also certainly never too early! Jump into the conversation and put your mind at ease about your golden years. Whatever life stage you’re at, you can take steps to achieve an enjoyable retirement.</li>
<li>Lump sum deposits – are they right for you?</li>
<li>Withdrawals and drawdowns – what’s the scoop around when you can take money out?</li>
<li>Product comparison of Mercer products – it can be confusing when there are lots of options on the table (see what we did there?!), but a financial adviser can help demystify what each one might mean for you.</li>
</ul>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz.</a>

Financial Advice

<h3>Sarah has pulled up a seat at the Table to help flex her financial muscles and inspire other women to do the same.</h3>
Want to make your money work for you? Looking to boost that bank balance and secure your financial future – but aren’t quite sure how? You’re not alone!
Just like perfecting your form at the gym, mastering financial habits takes a few reps – and sometimes, starting out is the hardest part. But by taking it one rep at a time with a can-do attitude, you can pump up your financial muscles and crush your money goals.
Sarah is one of the awesome women who has tapped into our resources at the Table for a financial flex. Read on to get inspired by her journey.
<h3>Financial wellness is for everyone: you don’t need to have a finance background</h3>
Sarah has a creative background, working in the Arts and Culture sector. She studied Classics, English Literature, and a Masters in Museum and Heritage Studies.
Her career path is a great example of how financial wellness is for all of us. It’s easy to fall into the trap of thinking if we don’t have a finance or accounting background, growing wealth isn’t “for us”. But nothing could be further from the truth.
Whether you’re a whiz with a spreadsheet or paintbrush – and everything in between – you belong at the Table and deserve to improve your financial wellbeing.
<h3>Sarah’s financial journey – milestones and mindsets</h3>
Sarah revealed that up until 12 months ago, she didn’t think managing money was her strong suit. But all of a sudden, she realised she had enough money in her KiwiSaver for a house deposit – so how bad could she be, really? After all, saving enough for a house deposit is no small achievement in this day and age! Around the same time, she also reached one of her major career goals of earning a six-figure salary.
How often as women have we been taught to downplay our achievements?
We know from our conversations around the Table that many women are lacking confidence when it comes to cash, believing they just aren’t good at it. But when Sarah actually realised she was reaching some major money milestones, her self-belief was boosted and she was able to reframe the way she thought about her finances. She now recognised she had the funds - and the smarts - to improve her financial wellness. It was all about working on her mindset, making a plan, setting her priorities and being realistic.
The recurring themes of being confident and having a determined mindset have definitely been crucial in her journey. She says:
<blockquote>
“I think confidence is a big thing. If you've grown up in a family on a lower income, you're in the mindset that being comfortable with money or gaining financial security just isn't something you'll ever achieve, so you sort of just tune out of the convo. Having the confidence to read up or ask questions is a big step towards understanding the terminology, and being brave enough to take action.”
</blockquote>
<h3>How to start boosting your financial future today</h3>
Some of Sarah’s top tips for building a better financial future include:
<ul>
<li>Checking out online resources and tools to help get your head around your personal finances and the world of finance and investing – like here at the Table!</li>
<li>Learning the basics of budgets and how to start a savings account</li>
<li>Taking a bit of time to learn the basics and set yourself up for success will help ease your fears</li>
<li>Just start talking about it! Find a close girlfriend you feel comfortable chatting about money with. It's really empowering, and it can be super fun with the right mate.</li>
</ul>
One of Sarah’s other great pieces of advice is to get brave when it comes to saying no to spending. In so many ways, learning to say no is a big one. When it comes to money, we’re often pulled in so many directions that sometimes you've just got to draw a line and not spend what you can’t afford. If anyone hassles you for it, they're a dick. So true!
<h3>The future of finance is female</h3>
Over the years, Sarah has seen the shift towards more equal representation for women in all things finance. She says:
<blockquote>
“In the past, when you did see a woman in an ad for anything to do with money? It was always a "wife and mother" role, so basically you could only think about finance in the context of providing for or supporting your husband and family. That just isn't the case for women, so it's great to see things moving in a different direction.”
</blockquote>
So… who runs the world? Women with financial finesse, of course! No matter where you’re at on your own journey, this is a muscle you can learn to flex. We’re here to help you train it up – just pull up at the seat at the table and learn from awesome wahine like Sarah who are growing those muscles and showing us all how it’s done.
Fun fact about Sarah: She shows her friends and whanau her love through feeding and hosting them. Cooking, hosting parties, and being an entertainer is what fills her cup – she’s a classic extrovert!
Sarah’s quick tip for beginners looking to set up a healthier financial future:   Do the mahi!
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Flexing those finance muscles: a chat around the Table with Sarah

Money and divorce: it’s a topic many of us have questions about - but sometimes we’re a bit afraid to ask. We know it can feel embarrassing, messy, overwhelming - or all of the above! - but with a helping hand, it doesn’t have to be. If divorce is on your mind, but you’re not sure what this will mean for you financially, we’ve got some info to help steer you in the right direction.
<h3>Why financial planning around divorce is important</h3>
At The Table, we’re here to support women to better manage their moolah. Some of us find money a bit of a tricky, awkward thing to talk about. Add divorce on top of that and it can be an extra sensitive subject, wrapped up in all the complexities of relationships and emotions.
We want to break down this stigma and get gals talking about money! By chatting about how we interact with money through all the different stages of our lives - the ups and the downs - we can help women gain more financial confidence and freedom. After all, relationship break ups are something most of us go through at some point, so we shouldn’t feel ashamed or scared to talk about it.
<h3>Top tips for if you’re going through a divorce</h3>
Get comfy and settle in to learn a few things you can do to look after your financial wellness when considering a divorce. Pssst - don’t forget that similar processes can apply if you’re separating from a “de facto” relationship, which means you’ve lived together as a couple for at least three years.
<ol>
<li>Talk to a lawyer.
There’s no way around this - there will be admin! Even in amicable break ups, a lawyer is essential for dealing with all the paperwork. They can help you navigate joint accounts and property, updating your will, and guiding you through any legal action if needed. They’ll be referring to the Property (Relationships) Act, which dictates how assets are divided between couples. Let’s be real, you might feel a bit overwhelmed by it all, so don’t be afraid to lean on their expertise.</li>
<li>Reorganise your daily finances.
It’s likely you will need to open new, solo bank accounts, and rearrange how your bills will be paid. While this might feel a bit daunting at the start, it’s also an empowering moment - you’re in control! Ensure all your joint accounts get closed and all bills are paid off: you’d hope it wouldn’t happen but you don’t want your ex racking up debt in your name or impacting your credit score. Don’t forget to revisit your insurance policies to make sure they’re up-to-date.</li>
<li>Make a new budget.
Budget, budget, budget! Now that you’re flying solo, your expenses will have changed. It’s important to take a beat to regroup and take stock of all the cash coming in and out of your accounts. How else will you know if you can afford that Eat Pray Love style holiday of self-discovery? Even a simple spreadsheet can help you get your head around your new situation - but if you’re an Excel whiz, go wild!</li>
<li>Plan for the future.
No matter your age, there are ways to boost your financial wellbeing and plan for a more abundant future. One of the most common investments New Zealanders have is KiwiSaver, which is super important for retirement planning. You can switch to the Mercer KiwiSaver scheme for access to expert financial advice about your KiwiSaver account and online tools to help you plan for the best possible retirement for yourself and your whānau. How good!?</li>
<li>Look after yourself.
Going through a divorce can be one of life’s most stressful events. Get support from your loved ones and take time to look after you. With a little bit of financial planning, you’ll be able to relax that much more, helping you get through the tough times. There’s always a light at the end of the tunnel - and you’ll get there!</li>
</ol>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

What you need to know about money if you're getting a divorce

Do you panic a little bit every time you hear the word “recession” in the news - but aren’t quite sure what to do about it?
If so, you’re not alone… it’s something on the minds of many women, but it can be hard to know exactly what steps to take to address it.
Here at the Table, we know that a little more knowledge and preparation can help empower women to improve their financial wellness and take on the financial ups and downs of the world. So if you’re not really sure what it’s all about… let’s get this whole recession thing demystified.
<h3>What is a recession?</h3>
A recession is a major, widespread downturn in economic activity that usually goes on for at least six months. New Zealand’s economy experienced a brief downturn in 2020 due to the Covid-19 pandemic, but our last major recession was during the 2008-2009 Global Financial Crisis (GFC), lasting one and a half years. Facing a lower economic output, many businesses closed, industries experienced significant slumps and sadly, some people lost their homes and savings.
I know that all sounds a bit terrifying… but keep reading to see why it’s not all doom and gloom.
<h3>Is another recession coming?</h3>
Economists believe that a global recession will take place in 2023. Here in Aotearoa, the Reserve Bank has predicted a year-long recession will begin in mid-2023. Luckily, they’re also forecasting that it will be mild, so we shouldn’t be seeing impacts as extreme as those in the GFC.
<h3>What should I do to get ready for a recession?</h3>
While the spectre of a recession on the horizon can create a lot of fear, and while they do have many real-world impacts, it’s important to remember that many people get through them without too much drama.
So, first things first, don’t panic! Easier said than done, we know, but you’ve got this!
Continue to budget well and if you can, it’s a great time to get ready by putting away some extra savings or paying off debt. You can start small, even if that means saving an additional $20 or paying a little more off a loan. Crazy, huge goals aren’t necessary - the best type of plan is one that’s realistic for you.
You might also want to mentally prepare to see investments like your KiwiSaver fluctuate in a recession. In times of economic uncertainty, people can go into a full-on doom spiral when they see a declining balance, which is totally understandable! However, while it’s scary to see those numbers go down, it’s all part of the cycle and in the majority of cases, they will bounce back. After all, they say the economy is like a marathon runner - it may slow down for a bit, but it will pick up the pace again sometime!
What’s more, an investment like KiwiSaver is actually one of the best places for your money in a recession because it means your risk is spread across a diverse investment portfolio. Just make sure that you are in the right fund for your situation. If you’d like any guidance on that, consider <a href="/articles/money/why-mercer">switching your KiwiSaver account to Mercer</a>. This will give you access to free advice from the Mercer Financial Advice team, who can ensure you’re in the correct fund for you - and help you get the most from your money.
<h3>Share the love with women in your life</h3>
By getting financially lit, you’re one step closer to living life on your own terms: and there’s nothing better than that! Embrace your inner money master and take charge of your financial wellbeing - in turn, this will help you handle any economic challenges the future may hold.
If this article has helped demystify the “R” word for you, share it with your mum, sister, aunty, daughter, partner or a friend! Together, we can help women get financially lit and have incredible, financially abundant futures.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Get prepared: how to survive a recession

<h2>How to ask for a pay rise.</h2>
Asking for a pay rise can be daunting for many, so you want to give yourself the best possible chance for the conversation to go well – which is why preparation is the key.
<ol>
<li>
Start by gathering as much market data as you can.
This could be through salary survey reports, analysing job boards, or even asking a Recruiter for their advice. Once you know what the market is paying, you can make a more informed decision on what salary you should be asking for. It’s important to note that size of business, and industry does have an impact on those average salaries though, so pull your research for multiple areas.
</li>
<li>
Look at your performance history – Have you consistently been told you’re a strong performer? Have you been taking on more of a lead role in your team? More projects and responsibilities? Have you streamlined an initiative and saved the business money or time? All of these can help broker the discussion with your manager.
</li>
<li>
Find out what the metrics are for pay increases at your work.
According to Mercer’s Global Talent Trends study, some businesses are moving more towards ‘skills based pay’, which means your salary might be linked to your learning and development – which is why it’s even more important to demonstrate that you have a structured and realistic career development plan in place. Prioritising your development will broaden out your skills and experience, but also signal to the business that you are worth investing in.
</li>
<li>
Set up a time to speak with your manager
Give your Manager prior notice that you’d like to have a discussion around your salary. The perfect time to do this is during performance reviews, before the financial year closes – It’s very difficult to get an ‘out of cycle’ pay increase due to budgets already being locked in for the next financial year, so pick the timing wisely.
</li>
<li>
Come to the meeting with a collaborative attitude.
It’s worth being realistic about expectations. It’s not always possible for businesses to increase salary significantly, so take the time to think about what is really important to you, and have a plan B. Is it actually more money that’s important to you, or could it be flexible working? Will having a ‘work from home day’ help, or is it investment into study? Could the business offer you subsidised parking within the building? Or, could they increase your bonus structure if you have one? Why not negotiate this into your request!
</li>
<li>
Be clear about your ask and your why
Remember to focus on your skills, e.g. ‘I have been recognized as a high performer in my current role and I’m actively working on my development by taking an Account Management course to bolster my sales skills. Based on the research I have done, I am requesting my salary be revised, and I am looking at XYZ.’
</li>
<li>
Avoid making demands and ultimatums
‘I deserve this because I’ve seen a competitor advertising my role for more.’ Is not a good idea. Avoid using counter offers as leverage, as this can have poor long term impacts – chances are next time there is a promotion going, they’ll likely go with the person they think will stick around the business for longer.
</li>
</ol>
One final note is to have confidence in your ask and empathy for the situation. It’s important to realise that your Manager and peers might also be in discussions around their pay, and there’s never usually an unlimited amount of money in the pot. There could even be factors out of their control which means they can’t give you as much as they’d like to.
Have a plan, be open minded and good luck!

How to ask for a pay rise.

<h2>GLOSSARY OF TERMS</h2>
(or all the things you want to know but were too shy to ask.)
We said we would break down the jargon so here it is. A glossary of financial terms.
Asset — all shares, bonds, cash etc owned by the scheme.
Aggressive portfolio — are you someone that likes to take risks? An aggressive portfolio is a type of investment that involves taking on a higher level of risk in order to potentially earn higher returns.
Balanced funds — a type of fund that aims to provide a balance between stability and growth.
Bond — lending money to a company or government. It is a way to invest your money that is considered less risky. Think of it as loaning a friend money with a promise they will give it back with some extra cash.
Budget — an estimate of income and expenditure for a set period of time.
Capital — the money you initially put into an investment. (For example, if you invest $100 in a bank term deposit this is your capital amount on which you get paid interest.)
Commodity — a commodity is any raw material, such as oil, gold and cattle, traded on an exchange or in the cash market.
Compounding interest — it’s interest on interest. It’s the magic of superannuation.
Conservative fund — is a type of investment that aims to make you money without taking on too much risk.
Dividend — a payment from a company's profits to its shareholders in proportion to the number of shares the shareholder owns (typically a payment of cash).
Dollar Cost Averaging — putting a set amount of money into your investment portfolio on a regular basis, regardless of the share price.
Emergency Fund — a stash of cash that you put aside and tell no-one about and if you need to leave a toxic relationship or workplace you can do this without having to rely on anyone else's money.
Equity — the sum of your assets, for example the value of your house, once your debts have been subtracted from it.
ETF — Exchange Traded Funds. An ETF is a collection of hundreds or thousands of stocks or bonds, managed by experts, in a single fund that trades on major stock exchanges, like the New Zealand Stock Exchange.
Gender pay gap — the difference between the median hourly earnings of women and men in full and part-time work.
Inflation — the rate at which the prices of goods and services increase over time, often equated with loss of purchasing power.
Interest rates — the interest rate is an additional amount paid by a borrower to a lender for using the financial asset.
Investment Horizon — the length of time you’re aiming to invest for. Often described as either short- term, mid-term or long-term investment horizon.
Investing — when you put money into shares, funds, property etc, with the expectation of growing the money you initially put in.
Managed funds — a managed fund is an investment that pools your money together with other investors. The managed fund then buys shares, bonds and/or other securities; what they hold is known as an ‘investment portfolio’.
Motherhood gap — the motherhood pay gap measures the pay gap between mothers and non- mothers, the latter defined in most econometric studies as women without dependent children. It also measures the pay gap between mothers and fathers.
Mortgage — a mortgage is a loan for the purpose of buying a home.
Net worth — net worth is a measure of wealth; it is the sum of all assets owned by you or your company, minus any obligations or liabilities.
Portfolio — the selection of investments you hold.
Return — the amount an investment has increased or decreased, represented as a percentage or dollar amount.
Risk — the level of exposure your investments have to the potential of loss.
Securities — a security is a tradable financial asset used to raise capital in public and private markets. There are primarily three types of securities: equity—which provides ownership rights to holders; debt—essentially loans repaid with periodic payments; and hybrids—which combine aspects of debt and equity.
Share — the ownership of a company can be broken into smaller pieces and sold, this is called a ‘share’.
Shareholder — someone who owns shares in a specific company.
Share Market — a market where shares are bought and sold. Like a farmers market, but instead of fruit and veggies — it’s shares!
We are here to help and support you on your financial wellness journey!

GLOSSARY OF TERMS

<h1>Shen Chen, a Financial Adviser in Mercer’s Advice Team, shares some of her insights for a financially-savvy future.</h1>
There are many inspiring women in Aotearoa’s finance space - and it’s our pleasure to introduce some of them to you! We spoke to Shen Chen, one of these awesome wāhine, to see how she began in the industry and get some quick tips for anyone wanting to venture into the world of investments.
Shen launched her career as an accountant, which was a great entry point into the industry as it helped her understand the financial statements that sit behind investments.
It wasn’t long before Shen realised she wanted to work in client-centric roles, helping people grow their investments for the future. Because of this, moving into her role as a Financial Adviser at Mercer was a natural progression: she loves working with different people and the variety of experiences it offers. No two days are the same!
Shen’s advice to women looking to start a journey into financial wellness is - just start!
“Start anywhere, whether it be reading about financial products, watching a tutorial or podcast about investing, or having a chat with a financial adviser that can help you along your financial journey, whatever point you may be at.”
Shen acknowledges that the unknowns and jargon of the finance industry can sometimes be overwhelming for newbies, making people reluctant to start their financial journey. The awesome news is that there are financial advisers like Shen who are here to help!
As a woman in finance, Shen knows there can be barriers. Throughout her career, she’s seen more women starting out as finance graduates, which is encouraging. However, the glass ceiling is still present in the industry - and change needs to be made at the top. In this way, Mercer is setting an example for others to follow.
“I am proud to work for a company such as Mercer that puts a focus on encouraging equality in this area and constantly challenges itself to be better.”
Thanks Shen, for sharing your insights with The Table!
Fun fact about Shen: In her spare time, she likes to keep fit and spend time in the ocean spearfishing and surfing. She finds being in the ocean is a great reset and “salt water therapy”!
Shen’s quick tip for beginners looking to set up a healthier financial future: Educate yourself on the pros and cons of investing.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Behind the Table: Meet Shen Chen, Mercer Financial Adviser

<h2>Introducing Leah Keys, a Mercer Investment Analyst. Check out our Q&#x26;A where Leah shares her journey into investment - and how you can get started, too.</h2>
<h3>What does your role at Mercer involve?</h3>
I am currently an Investment Analyst and my day-to-day involves a combination of portfolio management and sustainable investment. This mostly means looking at how we can mitigate risks within the funds. The sustainable investment side also brings in non-financial risks like climate change and we look at how we can mitigate potential risks posed by climate-induced events.
<h3>What’s the best part about your job?</h3>
I like that almost every day is different. Being part of a big machine means that there’s always something new going on and there’s always someone that would appreciate a hand, which means I can put my hand up to learn something new when opportunities come about. This is how my role started tilting to sustainable investing, which is my (somewhat) newly discovered passion. And of course the people – the people I work with are pretty awesome.
<h3>How did you get into your role?</h3>
I was fortunate to start with Mercer straight out of university. I studied a Bachelor of Business at AUT majoring in Finance and Economics. There’s a lot I learned at university that I apply from both portions of my degree but there’s also a lot I learned on the job.
<h3>What are your thoughts on the current position of women in finance - is it changing?</h3>
It’s quite interesting – it feels like there’s the same amount of women graduating university with relevant degrees, but not enough women getting positions in this field. I believe the mix is definitely changing though – as the importance of diversity continues to grow, one of Mercer’s objectives is to push for more women in finance, and we are letting our stakeholders know this is something we expect them to partake in too. Because things take time it will take a while for this to come through, but I’m optimistic that change is occurring.
<h3>What are some of your personal highlights and lowlights with investing and financial wellness?</h3>
I wasn’t taught to invest growing up, very typical of the “women are taught to save” mentality. I started investing small amounts throughout university and succumbed to what’s called behavioural finance - and locked in my losses by selling an investment at a loss. This is to date one of my biggest regrets. But I’ve taken it on the chin because there’s no point in dwelling. In terms of highlights – I recently liquidated all my investments to purchase a house. Now I’m in the process of rebuilding my equity investments, which involves setting a small amount of money aside each week and investing it in a couple of exchange-traded funds until I have the funds to invest in a managed fund.
<h3>Which area do you think people struggle the most with when it comes to finance?</h3>
I think people struggle with a few things: one is selecting appropriate investments for the time frame they wish to invest. The second is market volatility, where markets move up and down. And the third, and most important, is trust (or even a bit of ego). When you’ve got your life savings in your pocket it’s hard to put it into an institution, but it’s extremely difficult to pick our own select number of investments that outperform the markets.
<h3>What would be your #1 piece of advice to women looking to start a journey into financial wellness?</h3>
Choose a fund that suits your investment time horizon. Managed funds are designed to satisfy clients needs over different time horizons. Once you pick a fund, be prepared for ups and downs BUT when markets start dipping, hold on. Selling out locks in your losses and is one of the largest mistakes anyone can make (hindsight). If you need help picking an investment or just want to ask a few questions, call one of Mercer’s financial advisers, they’re not commission-based so won’t try and push anything on you.
Thanks so much Leah for pulling up a seat at the table and sharing your journey with us!
Fun fact about Leah: People and nature are important to her: she enjoys time with family and friends, her cats and her garden.
Leah’s quick tip for beginners looking to set up a healthier financial future: Start investing as early as you can, with as much as you can afford. Whether that’s $10 or $20 a week or even a month, putting something aside is important. If you don’t know how to do this – find someone qualified who does.

A Q&A with Leah Keys, Mercer Investment Analyst

At Mercer, improving Kiwi women’s financial wellness and wealth is at the heart of what we do.
We’re committed to closing the <a href="https://investmentnews.co.nz/wp-content/uploads/MJWretdat.pdf">20% gap between men and women in retirement savings</a>.
Because we believe that all Kiwi women should have access to easy-to-understand financial information, and the opportunity to invest in ethical, high performing KiwiSaver funds. Our vision is that women with solid investment goals can create a better financial future for both themselves and their whānau.
That’s why we’ve developed The Table - where Kiwi women talk money, uncensored.
Our Mercer KiwiSaver scheme and Mercer FlexiSaver scheme are designed to improve women’s financial wellness.
We’re inclusive and designed to suit any life stage or style. We recognise that over half of our members are women, and some of them are casual workers, and/or work part-time, or are taking a break from employment. There are nuances and challenges around building wealth for many women, and we understand that.
But you know what? You don't have to have it all figured out to start your financial wellness journey.
<a href="https://purl.co.nz/MercerKiwisaver-Eform-2G/welcome.html">Switch your KiwiSaver today</a> and get access to lots of tools to help grow your wealth.
<h3>Our Fees and Services</h3>
You’ll be charged fees for investing in the Mercer <a href="https://www.mercerfinancialservices.co.nz/KiwiSaver/benefits.html">KiwiSaver</a> scheme and Mercer <a href="https://www.mercerfinancialservices.co.nz/FlexiSaver/benefits.html">FlexiSaver</a>. However we do not charge a dollar based administration fee in these schemes.
Mercer FlexiSaver is an investment solution if you don’t want all your money locked in, with services designed to support our members.
Mercer has been helping Kiwis save for their best possible retirement for over 65 years, and is here to support you with the latest information, expert financial advice and online tools to help you achieve the best possible retirement for yourself and your whānau.
Find out more about our services <a href="https://www.mercerfinancialservices.co.nz/KiwiSaver/benefits.html">here</a>. Read the Product Disclosure Statement <a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_ProductDisclosureStatement.pdf">here</a>.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Why Kiwi women should switch to the Mercer KiwiSaver scheme

<h2>Want to make sure your investments align with your values? Here’s how.</h2>
In the same way we might choose to catch the bus, use reusable shopping bags, or only buy sustainably-sourced products, we can also choose where our money gets invested.
You may have heard of this as ethical, sustainable or responsible investing – which really just means an approach to investing designed to create positive social and environmental outcomes, as well as aiming to generate good returns.
<img src="/images/articles/20220503/ethical_investing/Factors.webp" alt="Factors ethical investment companies and funds consider">
Another part of ethical investing is also about what you don’t invest in. Like companies involved in industries such as tobacco, alcohol, gambling and controversial weapons (to name a few).
How do you get into it? It’s actually not that hard. If you have a <a href="/articles/money/kiwisaver">KiwiSaver</a> or managed fund, you can start by checking your provider’s sustainable investment credentials or reading up on its responsible investment policy, which you should be able to find online.
One easy way to check if your provider’s investment aligns with your values is to see if it’s signed the United Nations’ <a href="https://www.unpri.org/">Principles for Responsible Investment</a> (PRI), which is a public way companies can show their dedication to build a more sustainable financial system. Another thing to look out for are independent certifications, such as those offered by the Responsible Investment Association Australasia (RIAA), an organisation that operates the world’s first certification programme for responsible investment products.
You could also ask how your Provider is reducing its own carbon footprint.
There are also tools online, like <a href="https://mindfulmoney.nz/">Mindful Money</a>, which can help you find the right fund that aligns with your values. On the <a href="https://www.responsiblereturns.com.au/">Responsible Returns</a> website (which is run by the RIAA), it’ll ask what issues you want to support and what issues you want to avoid and come up with a few suggestions, helping you decide if the fund you’re in now is really the right one for you.
For Mercer, which has been on a responsible investment journey since 2006, when it became a founding signatory (as a consultant) of the PRI, being a sustainable investment provider means actively investing in some companies involved in providing solutions to the world's sustainability challenges, like renewable energy, water infrastructure, waste management, and pollution control.
The Mercer KiwiSaver scheme has been externally certified by the RIAA, and its commitment to responsible investing was also recognised by the PRI in its 2020 assessment report, where Mercer received an A+ for Strategy &#x26; Governance and an A rating for all asset classes.
You can find more about Mercer’s approach in its most recent <a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_SustainableInvestmentReport_NZ.pdf">sustainable investment report</a>.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

What it means to be an ethical investor

<h2>Getting set for retirement has never been easier.</h2>
Don’t know what type of KiwiSaver fund you’re in? Have no idea how much you’ve got in your account? If this is you, don’t panic – it’s actually a lot more common than you think. Many of us get signed up to KiwiSaver automatically when we start working and forget all about it. Luckily, KiwiSaver is a majorly good thing when it comes to our long-term financial future, setting us up for later in life in more ways than one.
<h3>Let’s start with the basics: what is KiwiSaver?</h3>
KiwiSaver is a voluntary savings scheme set up by the government to help New Zealanders to save for their retirement. It’s the easiest and most beneficial way to get yourself set up for later in life, and sorting it out now could just be the difference between retiring with a can of baked beans or a bottle of Moët.
The KiwiSaver provider you go with is up to you, and if you don’t know who that is, it’s likely you were assigned to a preferred provider by your employer or a default provider by Inland Revenue when you first signed up. If you want to find out who your current provider is, you can check through your bank statements, payslips, or contact Inland Revenue. If you’re registered for <a href="https://www.ird.govt.nz/about-this-site/conditions-of-use/our-online-services/myir">myIR</a>, you can also find out simply by logging in.
<h3>How does KiwiSaver work?</h3>
KiwiSaver works by you contributing to its balance through your salary or wages (before tax). You can choose to contribute 3%, 4%, 6%, 8% or 10% into your KiwiSaver account and your employer has to match your contributions by at least 3% (provided you’re contributing at least 3% from your pay). You can also make voluntary contributions whenever you like.
On top of all that, there’s also an annual government contribution of up to $521.43. To qualify for the full amount, you simply have to put in a minimum of $1042.86 of your own money between 1 July to 30 June each year – easy enough if you’re already contributing a portion of what you earn every payday, right?
KiwiSaver money is your future money. You’ll only be able to access it once you reach the qualifying age for New Zealand Superannuation, which is currently 65. That means you can’t take that money out whenever you want since it’s money designed to be set aside for your retirement.
When you can withdraw your KiwiSaver
However, there are some exceptions to this rule which allow you to withdraw part or all of your savings earlier than intended. These include suffering from a serious illness, experiencing significant financial hardship, emigrating permanently from New Zealand, or having a life-shortening congenital condition. More commonly, however, early KiwiSaver withdrawals are used by New Zealanders looking to put that money towards <a href="/articles/money/how_to_buy_your_first_house">purchasing their first home</a>.
The tax rate applied to your KiwiSaver investment earnings, known as your Prescribed Investor Rate (PIR), could be 10.5%, 17.5% or 28%, depending on your income from the past two years (Mercer's <a href="https://purl.co.nz/pir/">online calculator</a> can help you work out your correct PIR). This tax is paid to Inland Revenue generally on your behalf by your provider who will provide you with a statement each year.
<h3>How much will I need in my KiwiSaver to retire?</h3>
Great question. There’s actually no one-size-fits-all answer to this as everyone’s lifestyle and values are different. But a good rule of thumb is to think about these questions:
<ul>
<li>What sort of lifestyle do you want? Do you want to go on holidays to Europe and indulge in high end items? Or do you want a simpler life, maybe with some chickens and a veggie patch on a bit of land to call your own?</li>
<li>What’s most important to you? Seeing and supporting family? Your health? Travel?</li>
<li>How long will you live for? Bit of a confronting question, but it’s an important one to consider. We know that women, on average, live longer than men, and if you’re retiring at 65 and you’re fit and healthy, chances are you’ll be living your best life well into your 80s or 90s. That means you’ll need enough savings to last you anywhere from 15 to 30 or more years.</li>
</ul>
Next, think about your ideal yearly income for everything you need to live the life you want, then times that by the number of years you’d like to use that for from age 65 onwards.
For example, if you want to live in a city like Auckland or Wellington with $50,000 a year until you’re 85, you’ll technically need $1 million by the time you retire. See why we need that KiwiSaver now?
To find out how much you're likely to need in retirement, check out our <a href="https://supercalcs.co.nz/ris9/mst-kiwisaver">Retirement Income Simulator tool</a>. Sorted’s <a href="https://sorted.org.nz/tools/kiwisaver-calculator">KiwiSaver calculator</a> can also help you find out how much you're on track to save for your first home.
<h3>Which KiwiSaver fund is right for me?</h3>
Most KiwiSaver providers will have a number of fund options ranging from lower risk to higher risk funds. These funds will all hold a diverse mix of investments, with higher risk funds invested in more risky stuff (like shares and commercial property) and lower risk funds invested in less risky stuff (like bonds and cash). The more risk you take on, the more potential you have to grow your returns. But it’s also more likely your balance will have more ups and downs along the way.
Therefore, the right fund for you will ultimately depend on your age and stage in life. For example, if you’re in your early 20s and aren’t planning to access your KiwiSaver for the next 10 or even 20 years, then a higher risk growth fund is probably the best fit for you. This is a fund that’s more likely to be volatile but also potentially provide higher returns over the long run.
Alternatively, if you’re in your 30s or 40s and are looking to use part of your KiwiSaver to fund your first home in the next few months, a more conservative fund with less risk of huge ups and downs would probably be the better option.
It’s really important to make sure you’re in the right fund for where you’re at in life and what your plans are for the future. So if you’re still unsure, talk to your KiwiSaver provider to discuss your options.
If you’re with Mercer, you can get free financial advice by requesting a call back online from our advice team or calling 0508 637 237. You can also find out more about the <a href="http://www.mercerfinancialservices.co.nz/grow-my-savings.html">seven investment options that Mercer offers here</a>.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

What is KiwiSaver and how does it work?

<h2>Many women see the world of finance as a scary place. Kristen Kohere-Soutar, chairperson of the board of Mercer New Zealand, set out to create change in the sector for Māori. Now, she wants all wāhine to set and achieve their loftiest goals.</h2>
Raised on her whenua in Ngāti Porou by two teacher parents, Kristen Kohere-Soutar (Kai Tahu, Ngāti Porou, Rongowhakaata) was always connected to her taha Māori. Now the board chair at Mercer, life may look a fair bit different from the whenua she grew up in, but Kohere-Soutar still attributes her success to the values she was raised with; looking after the land, and its people.
From the early days as a young lawyer in the 90s, to the governance positions she's held at iwi and now at Mercer, Kohere-Soutar has stayed aligned with those values, and that's maybe why she's been so successful in her career.
"I think our foundations, what our whānau gifts us, what we inherit, and the values that we inherit are everything to do with what you perceive you can achieve in your lifetime, and what you want to achieve," she says.
<img src="/images/articles/20220503/wahine_maori/Kristen-Quote1.webp" alt="Make sure that when you look in the back yard that you&#x27;re looking after your gardens, that you&#x27;re feeding your family, and then grow your ambition from there.">
Kohere-Soutar says her goals were always, first and foremost, to provide for her whānau. To any wāhine out there wanting to start on their financial journey, she says it's important that the foundation of being able to provide for you and yours is <a href="/articles/money/getting_sorted">the first step</a>.
"Make sure that when you look in the back yard that you're looking after your gardens, that you're feeding your family, and then grow your ambition from there. There's no point pursuing a footprint in finance if you haven't got the value base right in your own life and your pathway isn't established for taking care of yourself."
After leaving school, Kohere-Soutar decided to create her foundations at university, studying Māori studies and history, and a Bachelor of Laws. When she exited university, in the 90s, she said it was a unique time for Māori lawyers, with economic and legal systems changing to bring in more understanding and practice of the Treaty.
But among that changing landscape, Kohere-Soutar found the law wasn't a sector she felt passionate about.
"It was too methodical, too conservative, too constrained. I had a vision that beyond settlement was post-settlement. I thoroughly believed Māori needed to have their own asset base to be able to be truly independent and not rely on anyone… I thought I would focus my career pretty early on to see what the needs were in the future for our people."
And that shift led her into finance.
For many women, and Māori women in particular, the finance sector seems a too big, scary, <a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Risk/gx-risk-wob-australasia-180222.pdf">male-dominated</a> beast to try and grapple with. <a href="/articles/money/building_womens_wealth">New Zealand women</a> tend to have <a href="/articles/money/building_womens_wealth">lower financial literacy</a> than male counterparts, and Kohere-Soutar says the sector often isn't kind to women, who can tend to prioritise other things over financial gain.
<img src="/images/articles/20220503/wahine_maori/Kristen-Quote2.webp" alt="The balance of power is held by males who have developed their career in a very narrow commercial, cultural world; they literally do not see women as their equals, because we talk different languages.">
"The balance of power is held by males who have developed their career in a very narrow commercial, cultural world; they literally do not see women as their equals, because we talk different languages. We come in and we're talking about 'how do we look after people?' not 'what is the bottom line?'," she says.
The good news is that many funds, like those at Mercer, now take into account the <a href="/articles/money/ethical_investing">environmental, social and governance [ESG] values of the companies they invest in</a>, meaning there's no need for women to have to compromise their values anymore.
Finance wasn't a world Kohere-Soutar always felt comfortable in. "It was a steep learning curve for years," she says. Appointed to her first governance role at Foundation North, a $1.2b philanthropic fund, in the early 2000s, she was very much at the deep end, and was a lot younger than most of the people in similar positions. But her broad educational and career background provided a good foundation with which to build her skill set in the financial world, she says.
Stepping into the chairperson's role at Mercer New Zealand in 2020 was the natural progression for Kohere-Soutar after over two years on the board, and many more in governance positions elsewhere.
It's that learning to walk between two worlds – te ao Māori and the world of finance and governance – that has been such an effective tool in Kohere-Soutar's career. She says many women are left behind because they're never taught to balance those two spheres, or that it's even an option.
"There is a lag in the transmission of the know-how in a capitalist society to women, and in the case of Māori women, the lack of alignment to that language. Not only are you alienated from it, but you may not actually want to be there because the cost to you, in terms of your own values, is too high."
To the wāhine who want to own their financial futures, her advice is to set big goals.
<img src="/images/articles/20220503/wahine_maori/Kristen-Quote3.webp" alt="Whaia te iti kahurangi – have lofty goals and take one step at a time to get there.">
"Whaia te iti kahurangi – have lofty goals and take one step at a time to get there. Keep focused on what your goals are and whatever your objective is, make it a lofty one because even if you fall short, you will be a lot further up the track than if you hadn't set that goal in the first place."
In her own life, Kohere-Soutar's goals have changed since the beginning of her career. With financial security taken care of, she now wants to give back to the communities that have helped her. Wāhine Māori, her iwi and the whenua and whānau from which she grew.
"Our whānau need to be able to support more people to be able to live on our whenua. Sheep and beef farming has seen a mass exodus of people leaving the district and with that has been a loss of culture, language and connection. I want to give back to my tīpuna and our whenua and that's a lot of work, so having time to do that and make sure that what we hand on to my children, and my mokopuna when I have them, is a thriving example of modern Māori on their whenua."
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Meet the wāhine Māori tackling the historically male world of finance

<h2>How women can make, save and invest more money, now</h2>
We want to help make sure women and their families benefit from financial independence, freedom of choice and the security of having adequate retirement savings and investments.
Even though it’s 2022, women still have lower financial confidence than men and data shows they are contributing, across the board, less than their male counterparts. The answer? Being given the support to school up on money so women can prioritise their financial wellness.
For many people, ‘money’ is a difficult topic, it is <a href="https://www.msd.govt.nz/documents/what-we-can-do/providers/building-financial-capability/guiding-narrative-overview.pdf">bound up in whakamā</a> (shame) and can cause a lot of anxiety.
Especially because historically the financial services industry hasn’t traditionally been designed for inclusivity. This means that many of the life events that women experience, like having children or taking a career break to care for a family member are not often factored in when companies develop and design products and services. Time for change? Yeah, we think so too.
<hr>
<h3>What’s going on with women and the ability to grow their wealth?</h3>
Many women make less money than men.
So much so, that currently in <a href="https://investmentnews.co.nz/wp-content/uploads/MJWretdat.pdf">New Zealand women’s KiwiSaver balances are 20% lower than Kiwi men’s balances</a>. Plus, there’s that giant gender pay gap affecting our earnings:
<ul>
<li>Pasifika women earn 25% less than Pākehā men</li>
<li>Maori women earn 22% less than Pākehā men</li>
<li>Asian women earn 19% less than Pākehā men</li>
<li>Pakeha women earn 12% less than Pākehā men 
(Source: <a href="https://mindthegap.nz">mindthegap.nz</a>)</li>
</ul>
<hr>
<h3>Other factors that affect women disproportionately:</h3>
<ul>
<li>
Longer life expectancy 
83.5 years old for women and 80 years for men. Living longer means we can expect to spend longer in retirement. As a result, we require more retirement savings to be comfortable in later life.
</li>
<li>
Maternity and carer leave 
Taking maternity leave often means a loss of contributions into our KiwiSaver accounts not just from our own pay, but from our employer’s and the Government (not even taking into account the potential investment gains during this time).
</li>
<li>
Cultural expectations 
Vary around women’s financial independence and what they’re entitled to.
</li>
<li>
Whakamā 
(Shame) about our financial situations.
</li>
<li>
Lack of confidence 
Women still experience higher rates of financial abuse in relationships than men, and are also statistically less likely to have other investments.
</li>
</ul>
All of these factors contribute to women’s lower <a href="/articles/money/kiwisaver">KiwiSaver</a> balances and have a big impact on the quality of our lives in retirement.
At Mercer, we want to improve the financial wellbeing of New Zealand women and to adapt to the way women actually live, and how they relate to, and understand, money and investing.
Because when women thrive, families and communities do too.
Ready to pull up a seat at The Table and grow your wealth?
<a href="/join">Join today</a>.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Imagine Aotearoa New Zealand filled with wealthy women

<h2>Swiped that credit card a few too many times? Here’s how to work your way towards a debt-free future.</h2>
Debt sucks, and sometimes, it can feel so big that we can’t seem to do anything else until it’s out of the way. There’s also a lot of emotion and shame wrapped up in owing money that can freeze us into ignoring it, overwhelming us to the point that we don’t even know where to start.
This is where we come in to say we’re here to help you with some ideas to put together a plan you can stick with.
Sure, we can try and live off instant noodles for the next however many months or years, but just like a fad diet, clearing your debts in this way is neither realistic nor healthy. You need a debt plan that you can stick with, and it needs to fit into your overall plan towards financial freedom that works for you and your life. So instead of living off cheap carbs for weeks on end, here are a few different ways to manage your debt so you can get back to the good things in life.
<h3>If you have a mortgage…</h3>
Talk to your bank or mortgage broker about consolidating your debt. This basically means taking out a new loan to wrap all your existing debts together in order to pay them off as a single ongoing payment.
Ideally this will reduce the majority of your interest rates on all your debts so you can get out of debt faster (think credit cards with 13% interest rates vs. a 6% interest rate on a mortgage).
<h3>If you don’t have a mortgage…</h3>
List all your debts and rate them in order from highest interest to lowest interest. Next, set up an automatic payment that comes out of your account each week (before you get a chance to get your hands on it!) and have it go towards paying off your highest interest debt.
Once that one’s cleared, work your way down the list until you reach zero. Be patient. Talk to your friends to help keep you accountable for any splurge purchases. Don’t beat yourself up if you make slip ups along the way — the key is to aim for consistent savings, not perfection!
<h3>Good debt vs. Bad debt</h3>
Sure, no one likes having debt, but that doesn’t mean all debt is technically “bad”. Some debt, like a mortgage, can actually help you grow your money in the long term. Therefore it’s useful to know the difference between “good” and “bad” debt so we can avoid “bad” debt sneaking up on us again. You can do this by:
<ul>
<li>Getting rid of your credit card: With a tap or swipe, having a credit card is like having the world at your fingertips. But the harsh reality is that credit card interest rates range anywhere from 12% to more than 20%. And if you don’t pay off the amount borrowed in full at the end of the month, it won’t be long before you’re left with a hefty bill to pay, especially since the interest you’re charged will quickly build up over time.</li>
<li>Not buying a new car: Did you know that new cars can lose their value pretty quickly? Instead of borrowing money to pay for that brand new Audi or Ford, set a budget and stick to it. You can find some great second hand cars that won’t break the bank if you know where to look. Plus, the government now offers a rebate for certain hybrid and electric cars.</li>
<li>Avoiding buy now pay later (BNPL) schemes: A modern alternative to layby, BNPL services (like AfterPay) have got bigger and easier over the years as a far more accessible way to pay for goods compared to other forms of credit (even more so than a credit card!). However, there’s currently <a href="https://www.stuff.co.nz/business/128136983/consumer-nz-calls-for-tighter-control-of-buy-now-pay-later-services">no legal obligation</a> for BNPL providers to ensure their lending is suitable and affordable for their customers, leaving plenty of people falling into a spiral of financial hardship and debt.</li>
</ul>
We know borrowing money for things your present self wants and you think your future self will enjoy can feel great in the moment, but like all good things in life, there’s always a catch. In most cases, taking on debt simply isn’t worth it so it’s best to just avoid it wherever and whenever you can.
If you do have to take on debt though, there are manageable options that won’t ruin your life. It’s useful if you make a list of what you owe, talk to your bank about consolidation, and start chipping away at them with regular automatic payments. Nothing good comes from ignoring our problems – face them head on and you might just be debt-free sooner than you think.
Resources
<ul>
<li><a href="https://sorted.org.nz/tool/budgeting-tool">Budget support here</a></li>
<li><a href="https://sorted.org.nz/tools/debt-calculator">Debt support</a></li>
<li><a href="https://www.mercerfinancialservices.co.nz/mercer-magazine/lifestyle/how-to-manage-financial-stress.html">How to manage financial stress</a></li>
<li><a href="https://www.mercerfinancialservices.co.nz/KiwiSaver/accessing-your-investment.html#SignificantFinancialHardship">Financial Hardship</a> - if you find yourself in real strife you may be eligible to draw from your KiwiSaver find out more here.</li>
</ul>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

How to manage debt

<h2>Key tips for managing money on your parental leave</h2>
Congratulations! You’re having a baby!
There is a lot to consider when having a child, including what to do with your KiwiSaver contributions.
How parental leaves affects KiwiSaver 
For many women, the time we take on parental leave can really affect the amount of money we have in retirement. Every break in our KiwiSaver contributions means we are putting less money toward our retirement and reducing our ability to benefit from compounding interest.
While you are on Government paid parental leave (PPL), it’s up to you to keep contributing to your <a href="/articles/money/kiwisaver">KiwiSaver</a> account.
There are no employer contributions from PPL payments.
But, you can choose to continue your contributions while on PPL by completing an application at Inland Revenue. Or you can make your own payments directly to your Mercer KiwiSaver scheme account. It’s like paying a bill but paying yourself using online banking instead.
How to keep your KiwiSaver contributions going while you’re on maternity leave
<ol>
<li>Talk with your partner and arrange for them to pay all or some of your contributions. You need to pay $1042.86 a year into your KiwiSaver account to be eligible for the government contribution (up to $521 every year!)</li>
<li>Talk with your employer and find out if they have a policy to keep paying employer contributions while you are on leave. More and more employers are including this in their parental leave packages. If you are receiving parental leave paid from your employer, this will be subject to KiwiSaver deductions unless you are taking a savings suspension.</li>
<li>KiwiSaver contributions are optional from PPL.</li>
</ol>
If you intend to use your KiwiSaver funds for a first home, check the <a href="https://kaingaora.govt.nz/home-ownership/first-home-grant/check-you-are-eligible-for-first-home-grant/">Kāinga Ora website</a> to find out if taking a break will affect your eligibility.
For more info and helpful tips, visit <a href="https://www.govt.nz/browse/work/parental-leave/taking-parental-leave/">this link</a>.
<hr>
Table Talk:
Sign your baby up for a KiwiSaver scheme or an Investment Account
One of the things you can do as a parent is to get your child into a KiwiSaver scheme.
If you contribute $10 per week or $520 a year from birth to 18 years old they could have over $14,000*
This plus compounding interest means that by the time your child is 25 they are likely to have over $35,000 available for a first home deposit or more if they also start contributing.
*Calculations based on <a href="https://sorted.org.nz/tools/kiwisaver-calculator">Sorted Kiwisaver Calculator</a>. Figures are suggestive only and do not constitute financial advice.
<hr>
Having a baby doesn’t mean you should lose out on your future savings.
Join The Table and thousands of Kiwi women on their journey towards financial freedom today.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

How to have a baby and not lose out on KiwiSaver money

<h2>Keen to kick off your investment journey but not sure how? We’ve got you covered.</h2>
Turns out that making, investing and growing money is not just reserved for men in boardrooms.
However, we’re still up against a few major challenges to level up the playing field. In 2021, the gender pay gap in New Zealand <a href="https://women.govt.nz/gpg">was 9.1%</a>. Add to this the fact that women often work in lower paid positions and are more likely to take career breaks to have children or look after family means women are still on average earning less money than men.
Investing doesn’t have to be hard, intimidating, or require a scholarship in maths to understand. You just need a base level of knowledge (scroll below reader) and a willingness to begin. Remember our mantra - start somewhere, and that somewhere is here.
<h3>What is investing?</h3>
Investing is putting money into things (assets) that can earn income or grow in value. This asset could be a house, for example, or a share of a company. Your KiwiSaver account is also a form of investing.
Share investing 
If you invest in a share (or stock), you’re essentially buying a part of a company. That company then uses your investment to grow their business. As they grow, your share potentially becomes more valuable so if you were to sell it, you could make a profit, and therefore grow your wealth. There is, of course, a level of risk to consider when investing in shares.
Compound returns 
Investing can also help grow your wealth through compound returns. This means you’re not only making a return on your initial investment, you’re also making a return on your return. All these returns add up over time, so if you keep your money invested, you could meet your goals faster than you might otherwise. And as time is our friend here, the longer you stick with it, the greater returns you’ll generally see.
Investing, however, also involves risk. Share prices change and you’re not guaranteed to make money – you might even lose the money you started with. That’s why it’s important to understand your appetite for risk before jumping in. If you’re not sure what your risk personality is, try taking Mercer’s <a href="https://survey.confirmit.com.au/wix/0/p371043117030.aspx">risk quiz</a> to find out.
<h3>Savings account vs. Investing: What’s the difference?</h3>
When you put your money into a savings account, it grows because of interest. Interest is compounded (daily, monthly, quarterly or at some other time), which means you’ll earn interest on the interest you’ve made on your initial deposit.
This all sounds great, until you realise that banks are currently offering low interest rates (although this may change in the future), and any small gains you earn are quickly eaten up by the rising cost of living. Add inflation to the mix and the money you have sitting in your savings account over 10 years may actually end up reducing in value.
When you save your money in a bank account, it’s harder to grow, whereas investing is all about making your money work harder for you because when you invest money, you’re buying an asset you think has the potential to increase in value over time (and often provide a revenue stream too).
The perks of a savings account 
To illustrate, let’s say you have $10,000 sitting in a savings account and you’re planning to set aside another $500 a month with the hopes of growing your money over the next 30 years. One option would be to put this money in a “high interest” savings account, like a term deposit. Currently, the best term deposit rates are <a href="https://www.interest.co.nz/saving/term-deposits-1-to-5-years">around 2%</a>, but most are a little lower. So if you saved $10,000 and an additional $500 each month, in 30 years you’d have about $145,363.
And the benefits of investing in the markets 
A second option would be to invest that money in shares. Share markets have grown investors’ money by <a href="https://www.thebalance.com/stock-market-returns-by-year-2388543">10% a year on average</a>, so assuming that happens, saving $10,000 with an additional $500 each month would mean you’d have $444,563 after 30 years.
<h3>Sounds great but… how do I start?</h3>
There are two main ways you can go about this: invest directly yourself, or through a managed fund.
DIY investing 
With DIY investing, you can individually choose which shares you want to buy. You can buy directly from the company or, more commonly for beginners, through one of the many online platforms that have been set up in recent years that allow you to buy shares from both local and overseas markets.
Managed funds 
A managed fund, on the other hand, works a bit like your KiwiSaver account. You choose the risk level and type of fund you want to put your money into and then you benefit from having a team of fund managers invest that money on your behalf, seeking to get the best returns they can in the market.
This is a great option if you don’t want to have to be on top of your portfolio all the time, or if you just want to set up an automatic payment from your account to invest in a diverse range of assets each week. If this sounds like you, then <a href="https://www.mercerfinancialservices.co.nz/FlexiSaver/benefits.html">Mercer FlexiSaver</a> could be a great option.
<hr>
Say it simply
Principal: This amount of money you start with. Literally the money you have to invest.
Portfolio: This is your collection of shares. Think about it as the cards in your wallet.
Dividends: These are returns some shares give back to shareholders each year on top of the compound returns.
ETF: An exchange-traded fund (ETF) is kind of like a bundle of shares – you buy shares in the ETF and you’re actually buying into a lot of different companies at once (think, a box of Cadbury Favourites). These types of funds are good if you want to spread your risk around.
<hr>
Hot tip 
Whichever method you choose, just remember: time in the market is more important than timing the market, so if you haven’t taken the plunge yet, the time to do it is literally right now.
Figure out how much you’re willing to invest, get an idea for what your <a href="https://survey.confirmit.com.au/wix/0/p371043117030.aspx">risk personality</a> might be, get yourself set up with an investment portfolio, and aim to contribute to it as regularly as you can. Even just a little bit now can go a long way in the future.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

How to get started with investing

<h2>Why remaining financially independent in a couple is important</h2>
Being in a relationship and sharing your living costs can be a major help to saving, investing and combining assets for your future.
But (and this is a big but), it also comes with its own set of complexities you should consider, no matter what stage your relationship is at or how solid you feel in it.
The main parts of your financial wellbeing you need to think about are:
<ul>
<li>KiwiSaver. Did you know your partner may be entitled to half of yours (and you may be to theirs) if you’ve been living together for two years or more and subsequently separate?</li>
<li>Parental leave. If you take parental leave, are you sharing an income and retirement contributions when you’re not working?</li>
<li>Money goals. What’s your relationship with money, what's theirs and how do these align with your future goals both together and separately?</li>
<li>Independence. How can you maintain your personal security when you share life costs with someone else?</li>
</ul>
Maintaining your financial independence 
Even if your partner is great at paying the bills and helping run your household, it’s so useful if you know what’s coming in and going out. Having oversight of this means that if anything happens, you’ll be able to take care of yourself.
In a not-so-shocking revelation, communication is key. Having clear, transparent conversations with your partner about how much you make, save and spend helps you both know where you’re at and where you’re headed.
Consider keeping your own personal savings going, even when you have shared bank accounts.
Making money goals 
Kind of like going to the dentist, sitting down in front of a spreadsheet can seem a bit confronting and in the too hard basket. But we’re absolutely not here to shame you because you bought an investment pair of pants last week or a new bag for work. This is your life! But, there are smart ways you can plan ahead. And that starts with taking stock.
Print out (hear us out) a month’s bank statement from your checking account and see if you can identify any trends. What do you splurge on? Do emotional triggers make you spend your money differently?
Examine your accounts, if you have any debt, and how hard your savings are working for you (there’s a handy article here that takes you through the benefits and risks of compound interest).
Make some realistic but tangible goals. What’s feasible for you to save in the next 3-6 months?
Hot tips: Five things you can do for your own financial wellbeing:
<ol>
<li>Set up your own KiwiSaver account and contribute, making sure you’re in the right fund for your age and stage. As you advance in your career, consider increasing your contribution percentage (there’s a scale from 3-10%).</li>
<li>Start putting money aside for an emergency fund and work towards this being enough for you to live off for 3-6 months.</li>
<li>Get your name on all your shared bills as well as access to all the passwords to your accounts.</li>
<li>Talk about a fair arrangement if you’re planning on going on maternity leave.</li>
<li>Speak to a financial adviser.</li>
</ol>
The biggest thing to remember is that starting is often the hardest part. Remember - it’s not historically been made easy for women to accumulate wealth or feel super confident with money (that’s kinda why we’re here), but taking stock of where you’re at is the first step.
And then? It’s all about making achievable plans that get you in your saving rhythm.
We’re running a series of workshops and events around Aotearoa to support Kiwi women on their money journey.
Have you joined The Table to get access to them yet?
Join The Table today.
Other content you might find useful:
<ul>
<li><a href="https://sponsoredinteractive.stuff.co.nz/powermoneysecurity/index.html">Money and relationships</a></li>
<li><a href="/articles/money/kiwisaver">Sorting your KiwiSaver account</a></li>
<li><a href="/articles/money/building_womens_wealth">Growing your wealth</a></li>
</ul>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

How to both be in a relationship and protect yourself financially

<h2>The path to financial freedom starts with just a few simple steps.</h2>
Argh, money! Where to start and what to do with it — especially with so much going on in our lives, it's often the last thing you feel like thinking about at the end of the busy week. But the truth is, sorting out your finances doesn't have to be difficult and overwhelming — we promise.
<img src="/images/e.webp" alt="Stock Photo C">
The big secret is just getting started. Here are five quick, simple things you can do right now to set yourself on a path towards financial freedom.
<h3>1. Pay yourself first</h3>
If there’s one thing we should all start doing today, it’s this one. Most people – especially women – will pay for groceries, the kids’ school supplies, everything and anything before we take care of ourselves. But paying ourselves first can make a huge difference for us in the future, and all it takes is making a few small adjustments to our banking.
Start by setting up an automatic payment that comes out of your wages each week before you spend it on anything else, and set that money aside in a separate account. The amount you pay yourself doesn’t have to be a lot – the important thing is to get into the habit of saving as early as possible, even if it’s just $5 or $10 at a time.
If you’re not sure of how much you can afford to set aside each week, there are some <a href="https://sorted.org.nz/tool/budgeting-tool#/welcome">great budgeting tools online</a> that can help. Just remember: time and consistency are our friends, so start today with whatever you can and keep going.
<h3>2. Sort your KiwiSaver</h3>
Alright, say it with us: “I need to be in the appropriate fund for my age and stage of life”.
So what does this mean? Basically it means the risk level of your KiwiSaver fund should reflect a) how old you are, b) where you are in life, c) what your plans are for the future, and d) your own personal attitude to risk.
For example, if you’re relatively young and just starting your first job, you might be best in a high growth (or higher risk) fund so you can benefit from potentially bigger returns over your career. Or, if you’re about to buy a house and want to use your KiwiSaver investment for your deposit, you probably want to look at a lower risk fund so your money is more stable just before you take it out.
We can’t emphasise enough how important it is to make sure your KiwiSaver money is in the appropriate fund for your age and stage of life. Being in the wrong fund could potentially mean missing out on hundreds, even thousands, of dollars by the time you retire, and the earlier you start, the more benefit you’ll see thanks to the magic of compound interest. So take the time – just 30 minutes is all it takes really – to look at how you’re investing right now.
At Mercer, we also provide free KiwiSaver investment advice on the Mercer KiwiSaver Scheme through our Financial Advice Team. So if you’re wanting a bit more expert help on this, don’t hesitate to reach out.
<h3>3. Consolidate your debt</h3>
No shame or judgement here: debt is a fact of life, and the more we talk about it and share our knowledge around it, the quicker we can all work towards sorting it out.
If you have a mortgage, you may be able to roll your debt into it, since this is usually the lowest rate you’ll have available to you. If you don’t have a mortgage, you may still be able to roll all your debts into one, preferably into the one with the lowest interest rate, or start chipping away at each of them with more going towards a debt with the highest interest rate.
For help on calculating and repaying your debt, Sorted’s debt calculator is a great free online tool you can use. And for more tips and resources on managing debt, check out our article on the topic here.
<h3>4. Start an emergency fund</h3>
From an unexpected car repair to a shock medical bill, we never quite know what life will throw our way. In these events, having an emergency fund can make a huge difference – think of it as your parachute, your car air bag, or your secret escape door.
An emergency fund can give you a buffer for life’s unexpected bumps. Ideally, your emergency fund should have enough to cover you for around three-to-six months, and should be in an appropriate savings account in your name which you can access quickly.
<a href="https://sponsoredinteractive.stuff.co.nz/powermoneysecurity/index.html">LISTEN</a>
<h3>5. Start an investment account</h3>
Savings accounts are great if you want to have access to money at short notice, but over time, tax and inflation can often eat into the value of any interest those accounts earn. To grow your wealth in the long term, having an investment account is usually a better option.
Plus, there are heaps of excellent online investment platforms that allow you to do this yourself. Or, if you want to take the work out of it, you could look at a managed fund, which is similar to your KiwiSaver fund but one which you can access more easily.
At Mercer, we offer <a href="https://www.mercerfinancialservices.co.nz/FlexiSaver/benefits.html">Flexisaver</a> which has the benefit of being managed by a skilled team of experienced investment experts – all you have to do is set up an auto-payment each week or month and watch your money work hard for you. The important thing is to do this early and regularly for the best results.
<a href="https://sponsoredinteractive.stuff.co.nz/powermoneysecurity/index.html">LISTEN</a>
<blockquote>
When you join The Table and switch your KiwiSaver account to Mercer, not only do you get full access to the ever growing resources on this platform, but as a Mercer member you get free access to our in-house team of financial advisers.
</blockquote>
Ultimately, make these changes in whatever order you want, however suits. But it is about starting somewhere. Because if you can sort the basics, you’ll give yourself a solid foundation for financial freedom for the rest of your life.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

Five tips to get your finances sorted

<h2>Deposits, mortgage brokers, KiwiSaver withdrawals – we break down the basics of first home buying.</h2>
Between skyrocketing house prices and banks demanding huge deposits, it’s no wonder people are questioning whether homeownership is really for them. And you know what? Fair enough! Plus, there are other ways we can <a href="/articles/money/building_womens_wealth">grow our wealth</a> that doesn’t involve spending thousands on a home.
But for most New Zealanders, the home ownership dream lives on, especially among 18-39 year olds who’ve been dubbed as <a href="https://www.trustees.co.nz/about-us/insights/generation-rent/">“Generation Rent”</a>. Making up around 1.5 million New Zealanders (of which just 40% own a home), 84% of Generation Rent still think home ownership is the ticket to long-term financial security with 55% actively working towards the goal of buying a property to live in in the next five years.
After all, with rent prices averaging around $500-600 in cities like Auckland and Wellington right now, a lifetime of renting isn’t exactly the most appealing thought when you could be putting that money into a forever home instead.
We know the housing market feels nearly impossible to approach right now, but there’s still hope. To start, you need to know where to look for help and what to be prepared for.
<h2>How much will I need?</h2>
Currently, you need at least 20% for a deposit if you’re buying your first home (or 40% if you’re purchasing an investment property). And with the average house price in New Zealand ranging anywhere from $500,000 in the regions to more than $1 million in cities like Auckland, you’ll probably need to look at having at least $200,000 to spare.
Yep, it’s a lot of money, but there are few different funding sources you might be eligible to draw on. These include:
<ul>
<li>
Your KiwiSaver fund: If you’ve been a KiwiSaver member for at least three years, you may be able to withdraw all (leaving a minimum of $1,000 in your account), or part, of your savings to put towards buying your first home. For more details, check out <a href="https://www.mercerfinancialservices.co.nz/KiwiSaver/accessing-your-investment.html#FirstHomeWithdrawals">Mercer’s guide to accessing your KiwiSaver here</a>.
</li>
<li>
Purchasing a KiwiBuild home: KiwiBuild is a government-led project aiming to build <a href="https://kaingaora.govt.nz/home-ownership/first-home-grant/">100,000 new homes</a> primarily for first-time home buyers. These homes are more affordable than non-KiwiBuild homes as they’re priced below price caps set by the government.
</li>
<li>
The First Home Partner scheme: A <a href="https://kaingaora.govt.nz/home-ownership/first-home-partner/">shared ownership scheme</a> to help aspiring first home buyers whose deposit and home loan aren’t quite enough to buy a home that meets their needs to purchase a home together with Kāinga Ora.
</li>
<li>
A co-ownership with friends: Co-ownership can be a great way to jump on the property ladder with people you know and trust. Just remember: drawing up <a href="https://www.settled.govt.nz/blog/should-i-buy-a-house-with-a-group-of-friends/">a co-ownership agreement</a> with a lawyer is a must!
</li>
</ul>
<h2>I’ve finally got enough for a deposit. What now?</h2>
Once you have your deposit (or at least a solid plan towards getting there) you can look at applying for a mortgage. There are two main ways you can go about this: head directly to the banks and speak to one of their lending specialists, or find a mortgage broker to do the leg work for you.
The main difference between these two approaches is that if you talk to the bank directly they’ll always be speaking about their products and rules, whereas if you talk to a broker they can get a number of options from different banks. Ultimately, what you decide to do will depend on what kind of support you need and how confident and knowledgeable you are in the process.
How do mortgage brokers work? 
Mortgage brokers go between the borrower (that’s you) and the bank/mortgage provider. They understand your financial situation and what the latest products and opportunities are available in the marketplace. They then use that information to hunt out the best offers and talk you through the different options for how to structure your mortgage. And when it comes to applying for a loan, the broker should help you fill in any forms required and submit them to the preferred lender.
In New Zealand, all mortgage brokers are regulated by the Financial Markets Authority. It’s important to note they’ll usually have affiliations with a number of mortgage providers (eg: financial institutions like banks and Credit Unions) which they must declare upfront when working with you.
A broker will usually offer their services free of charge because they get paid commission from the bank’s margin. Where a broker operates under this commission model, they only get paid when you take out a loan through them. There’s nothing wrong with this model, but you do need to understand that they have a vested interest in you taking out a loan.
Also note that mortgage brokers aren’t necessarily registered financial advisers. So if you want personalised advice on mortgages or buying your first home, it’s best to go and speak to <a href="https://www.fma.govt.nz/investors/getting-financial-advice/finding-an-adviser/">a financial advice provider</a> with experience in the area.
<hr>
<a href="https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_First_Home_Withdrawal_Guide.pdf">READ: Mercer’s KiwiSaver first home guide.</a>
<hr>
Buying your first home definitely isn’t easy, but just know you’re not alone. Help is out there, so it’s worth taking a look and assessing your options before dismissing the idea of home ownership completely.
Check out Kāinga Ora’s range of <a href="https://kaingaora.govt.nz/home-ownership/">home loan products and initiatives</a>, and talk to your KiwiSaver provider to see if they can offer advice on using your fund for your first home (if you’re with Mercer, our Financial Advice team is here to help). You might also want to meet with a broker and see what’s possible with your budget, or make the most of mortgage calculator tools like <a href="https://sorted.org.nz/tools/mortgage-calculator">this one</a> to figure out what your weekly repayments for that dream home might look like for you.
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

First home buyer? Here’s what you need to know

<h2>Start saving early and reap the financial rewards of compound interest.</h2>
Compound interest is your new best friend. Why? Simply put, it’s the interest you earn on interest (as well as the interest you earn on your capital). It’s the way to grow your wealth and help you become financially independent.
In fact, it’s so great that Albert Einstein apparently once described compound interest as the “eighth wonder of the world,” saying: “he who understands it, earns it; he who doesn't, pays for it.”
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Still confused? We know, it can be a lot, but let us explain.
<img src="/images/articles/20220503/compound_interest/Decoding-the-jargon.webp" alt="The Eigth Wonder of the World: Compound Interest">
<h2>How compound interest works with savings</h2>
Think of a snowball: as it rolls along in the snow, it gets bigger and bigger. This is also what happens with compound interest.
Take Maia, for example: Maia has $10,000 in a savings account with 4% interest which she leaves untouched in her account. At the end of year one, she’ll have earned $400 in interest giving her a total of $10,400. Every year, that interest will “snowball”, so that after 30 years, she’ll have earned $22,434 in interest giving her a total of $32,434. Not bad for an initial $10,000 investment, right? This is assuming Maia has made no withdrawals and the 4% interest rate has remained steady.
Tess, on the other hand, takes a different approach. She also has $10,000 in a savings account with 4% interest, but instead of leaving it there like Maia does, she takes out the interest she earns each year to buy cool new stuff. That means that every year, Tess will have an extra $400 to spend on whatever she likes. But unlike Maia, whose savings will have ballooned after 30 years thanks to compound interest, Tess would have spent $12,000 over the years and she would still have $10,000 in her account.
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Now think about your KiwiSaver account or your investment portfolio and the thousands of dollars that many of us will invest into it over the next 40 or so years of our working lives. By taking the same approach as Maia does, compound interest means that it all adds up, potentially leaving us with a pretty sizable snowball in the years to come.
“The most important thing to remember about compound interest is the earlier you start the greater the return is to you,” says Glenys Wilson, head of the financial advice team at Mercer.
“For example, if you're in your early 20s and in your first job, starting early with a small regular amount will earn you significantly more than if you start much later in life with much bigger contributions.”
“I knew a woman in her 60s who’d been a cleaner all of her life on a low wage. But she’d been consistent and had made sure she was in the right fund and steadily made regular contributions from her 20s in addition to contributions from her employer. At retirement, when I told her she had over $800,000 in her investment account, she nearly fell off her chair.”
<h2>How it works with debt</h2>
Understanding compound interest is also important when it comes to debt. Paying back debt as quickly as possible is crucial because the rules of compound interest also apply.
For example, Jessie has $1,000 in credit card debt which charges 12.9% in interest every year. After 10 years of failing to pay this money back, Jessie’s debt will have ballooned to $3,364.65 – more than three times the original amount that she borrowed.
So the slower you repay debt which charges interest, the more you’ll end up paying back over time. And if you’re struggling with debt and are looking for tips and resources on how to better manage it, check out our guide on dealing with debt <a href="/articles/money/managing_debt">here</a>.
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<h2>What you can do today</h2>
Whether you’re investing towards a goal or paying off a loan, the principles of compound interest mean that starting early can make a huge difference. If you haven’t got your <a href="/articles/money/kiwisaver">KiwiSaver</a> sorted, start contributing now. And if you’ve got money sitting idly in a bank account, think about setting up an <a href="/articles/money/making_more_money">investment account</a> instead. All these things add up over time, and by starting now, your future self will thank you for it later.
<h4>Tools</h4>
<ul>
<li>Retirement Simulator <a href="https://supercalcs.co.nz/ris9/mst-kiwisaver/">here</a></li>
<li>Compound Interest Calculator <a href="https://sorted.org.nz/tools/savings-calculator">here</a></li>
<li>Listen to the <a href="https://sponsoredinteractive.stuff.co.nz/powermoneysecurity/index.html">KiwiSaver podcast</a> and the <a href="https://sponsoredinteractive.stuff.co.nz/powermoneysecurity/index.html">investment podcast</a></li>
</ul>
<hr>
The above article is general information and does not purport to give financial advice. The Mercer KiwiSaver scheme and Mercer FlexiSaver are issued by Mercer (N.Z.) Limited. Product Disclosure Statements are available free of charge at <a href="https://seatatthetable.co.nz/">seatatthetable.co.nz</a>.
<hr>

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