Let’s be honest. When you’re in your teens or twenties, retirement can feel like a future-you problem. You’ve got rent. Petrol. Groceries. Phone bills. Maybe a student loan. Maybe you’re trying to save for a car, move out of home, travel, or just make it to payday without checking your bank balance five times.

So when money is already tight, it’s fair to ask: Why should I put money into KiwiSaver when I could use it right now?

It’s a good question. And the answer isn’t that you should ignore what’s happening today just because retirement is decades away. It’s that starting early can give you something incredibly valuable: time.

You don’t have to be rich to get started

One of the biggest misconceptions about KiwiSaver is that you need to be putting away huge amounts of money for it to matter. You don’t.

If you’re eligible and contributing through your job, your employer may contribute too. Depending on your circumstances and the current rules, there may also be government contributions available. That means your KiwiSaver balance isn’t just about the money coming out of your pay. Other money can be going in too. And that’s worth knowing about.

Your 20-year-old self has something your 30-year-old self doesn’t: Time.

Imagine two people. One starts putting money into KiwiSaver in their early twenties. The other waits until their thirties. The second person might eventually contribute more money, but the first person’s money has had an extra decade to be invested and potentially earn returns. Then those returns can potentially earn returns of their own. That’s compound growth. You don’t need to understand all the maths to get the point: Starting earlier gives your money more time to do some of the work. That’s one of the biggest advantages you have when you’re young.

But what if money is seriously tight?

This is where the conversation needs to be realistic. If you’re struggling to pay for essentials, KiwiSaver shouldn’t make you feel guilty. Sometimes there genuinely isn’t much spare money. The good news is that it doesn’t have to be an all-or-nothing decision.

Depending on your circumstances and the rules that apply to you, you may be able to reduce your contribution rate rather than stopping completely. That can help you keep the habit going while giving yourself some breathing room.

The goal isn’t to make today harder so that some imaginary future version of you can have more money.

The goal is to find a balance between looking after today-you and future-you.

And your KiwiSaver investment isn’t only about retirement

This is something younger people often don’t realise.
For eligible members, KiwiSaver can potentially help with a first-home purchase after meeting the relevant membership and withdrawal requirements.

So the money you’re putting away isn’t necessarily only about some distant retirement date.
It could eventually become part of something much closer to home ownership.
That doesn’t mean KiwiSaver is a house-deposit account. Your money is invested and its value can rise and fall.

But it does mean KiwiSaver can be relevant to goals that happen well before retirement.

There’s another benefit: you don’t have to think about it

This might be one of the best things about KiwiSaver. Once it’s set up, it can happen automatically.

Money comes out of your pay. It gets invested.

You don’t have to remember to transfer it every payday.

You don’t have to decide whether this month is the month you finally start saving.
And you don’t have to rely on being motivated.

That’s useful because most of us have enough financial decisions to make already.

Good financial systems don’t need you to think about them all the time.

What about when everything gets expensive?

This is probably the biggest reason you’re wondering whether KiwiSaver is worth it right now. If petrol, rent and groceries are eating more of your pay, putting money away for decades from now can feel ridiculous.

But there’s a difference between reducing what you contribute and giving up completely.

If you stop contributing, you may miss out on contributions you could otherwise receive and lose the benefit of having that money invested for longer.

And there’s another problem.

It’s very easy to say: “I’ll start again when things get easier.”

Then six months passes.
Then a year.
Then something else happens.

Keeping even a small amount of momentum can be easier than trying to restart from zero.

So, should you bother with KiwiSaver under 25?
If money is tight, don’t beat yourself up because you can’t save as much as you’d like.
But don’t automatically assume that because retirement is decades away, KiwiSaver doesn’t matter either.

You’re not saving for some random 65-year-old.
You’re saving for you.
The you who might want to buy a home.
The you who might want more choices about when and how you work.
The you who will be very glad that 20-something-you started earlier than you had to.
You don’t need to have everything figured out.
You don’t need to maximise every dollar.

And you don’t need to sacrifice today’s essentials for tomorrow’s possibilities. But if you can keep something going in the background, time is one advantage you don’t get back.

The takeaway: KiwiSaver isn’t about being perfect with money.

It’s about giving your future self a head start while you’re still young enough for time to do some of the heavy lifting. And honestly? Future-you will probably appreciate it.

This article is for educational purposes only and does not constitute financial advice. Please seek advice from a qualified financial adviser when making decisions about your financial situation.

📩 Christian KiwiSaver Scheme, The Retire Fund, and The New Zealand Anglican Church Pension Fund are managed and issued by The New Zealand Anglican Church Pension Board (trading as Anglican Financial Care). The Product Disclosure Statements can be found here: https://angfincare.nz/news-and-knowhow/forms-and-documents/