KiwiSaver

Here is a beginners guide to it.

What is it:

  • Superannuation (retirement) savings scheme.
  • Workplace based. Deducted from your wages/salary.
  • New employees automatically enrolled (unless they opt out).
  • Existing employees can opt in.
  • Portable from one employer to another.
  • Private sector Fund Managers.
  • Contributions 3% (default minimum) with the option to contribute 4% or 8%.
  • Additional lump sum and regular contributions possible.
  • Self employed and non employed can contribute directly to a provider.
  • Children can receive the $1,000 Kick Start without any regular contributions.
  • Members funds are locked in until the age of eligibility for NZ Super (currently 65)
  • Funds invested in KiwiSaver are not government guaranteed.

What does it mean to you:

As an Employee:

  • KiwiSaver gives you the opportunity to enhance your retirement income.
  • Low fees.
  • Significant tax savings possible. Up to $521 per year credited to your KiwiSaver account.
  • 1st home buyer subsidy. Up to $10,000 towards your deposit. (conditions apply)
  • Employer contributions. Your employer will contribute an additional 3% of your gross earnings .
  • When you start with a new employer you will be automatically enrolled in KiwiSaver.
  • If you do not want to be a member you must opt out within 8 weeks.
  • or after one year you can apply to take a Contributions Holiday.
  • You can choose to opt in with your current employer.
  • You should get professional advice on which provider to choose.
  • You should get professional advice on which investment product to choose.
  • If you do not make a choice you will automatically be allocated a provider and product.
  • We can provide the professional advice that you will need to make the correct decision for your individual circumstances.

For advice and assistance:Contact Us

Being Not Employed:

  • KiwiSaver gives you the opportunity to enhance your retirement income.
  • You should get professional advice on whether KiwiSaver is right for you.
  • You must choose to opt in by contracting with a KiwiSaver provider.  
  • We can assist you to select a provider.
  • Low fees.
  • Significant government incentives. Up to $521 per year credited to your KiwiSaver account (dependent on how much you contribute).
  • No fixed contribution rate.
  • 3 years after you begin contributing you may qualify for the 1st Homebuyer Grant. Up to $10,000 towards your deposit.
  • We can provide the professional advice that you will need to make the correct decision for your individual circumstances.

For advice and assistance:Contact Us

Being Self Employed

  • You are able to join KiwiSaver by contracting directly with a KiwiSaver provider.
  • Your contribution rate will be agreed with the scheme provider.
  • Significant government incentives. Up to $521 per year credited to your KiwiSaver account (dependent on how much you contribute).
  • 3 years after you begin contributing you may qualify for the 1st Homebuyer Grant. Up to $10,000 towards your deposit

For advice and assistance: Contact Us

 If you are aged between 60 and 65:

  • You can join KiwiSaver.
  • You can receive the Tax Credit of up to $521 per year effective 1 July 2011 depending on your contributions.
  • Your funds will be locked in for 5 years.
  • If you cease working you can continue to contribute directly to your Scheme Provider or after one year, take a holiday from contributing.
  • We can provide the professional advice that you will need to make the correct decision for your individual circumstances.

For advice and assistance:Contact Us

As an Employer:

  • You will have an opportunity to enhance staff retention and be seen as employer of choice by providing different remuneration options that could save employees tax.
  • From 1 July 2007 all employers will be required to automatically enrol all new staff in KiwiSaver. (Exemption from this rule is possible if you offer an approved alternative).
  • All employers will be required to enrol any existing employees that opt in to KiwiSaver.
  • You will be required to give every new employee, and any existing employees that opt in, an information pack about KiwiSaver.
  • You will be required to notify IRD of all new employees.
  • You will be required to deduct the contributions from your new employee's first and subsequent pays and forward them to IRD.
  • You will be required to keep a record of all contributions.
  • From 1st April 2009 you will be required to contribute 3% of each contributing employees gross salary.
  • Employees will require financial advice that you may not be qualified to give them.
  • You can choose the default provider for your employees. You should get professional advice before making this decision.
  • We can provide professional advice and assistance to you and your staff.

 

 

For further information and advice .

Contact Us

 

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