KiwiSaver
KiwiSaver is a voluntary, work-based savings initiative to help you with your long-term saving for retirement. It's designed to be hassle-free so it's easy to maintain a regular savings pattern.
A copy of my disclosure statement is available to you at no cost
Work-Based Savings
For many people, KiwiSaver will be work-based. This means you'll receive information about KiwiSaver from your employer, and your KiwiSaver contributions will come straight out of your pay.
What you get when you retire?
NZ Super provides for a basic standard of living in retirement, but it may not be enough for the kind of retirement you want.
KiwiSaver complements NZ Super to provide you with a better standard of living for your retirement. KiwiSaver is treated in the same manner as other voluntary private or employment-related superannuation schemes. This means that having a KiwiSaver account doesn't affect your eligibility for NZ Super or reduce the amount of NZ Super you would be eligible for.
To find out how much you're likely to need in retirement, visit the Sorted website or seek advice from a financial advisor.
Government initiative
The Government created the framework for the KiwiSaver initiative, to help New Zealanders financially prepare for retirement.
There's a range of membership benefits to encourage you to get saving. This includes:
- a $1,000 tax-free kick-start
- a member tax credit of up to $1,042.86 per year, and
- a compulsory contribution from your employer.
Some people may also be eligible for help with the deposit on their first home.
KiwiSaver has several benefits and incentives:
- starting incentive (kick-start)
- member tax credit
- compulsory employer contributions
- savings withdrawal to buy your first home
- first home deposit subsidy
Who can join KiwiSaver?
KiwiSaver membership is voluntary.
You can join KiwiSaver if you're:
- a New Zealand citizen, or entitled to live in New Zealand indefinitely, and
- living or normally living in New Zealand (with some exceptions), and
- below the age of eligibility for NZ Super (currently 65).
You can't join KiwiSaver if you're:
- holding a temporary, visitor, work or student permit
- living overseas, unless you're a government employee:
- serving outside New Zealand, and
- employed on New Zealand terms and conditions, and
- serving in a jurisdiction where offers of KiwiSaver scheme membership are lawful.
If you're under the age of 18
If you're under 18 years old, you can choose to opt in to KiwiSaver if your provider allows, or your parents can sign you up.
If you're between 60 to 65 years old
If you join when you're between 60 and 65, you won't be able to get your money out until you've been a KiwiSaver member for 5 years.
If you already have a retirement savings scheme
You can still join KiwiSaver even if you already save through another superannuation scheme.
Choosing your KiwiSaver Scheme
You can choose which scheme to join, even if you're provisionally allocated to an employer-chosen scheme or a default scheme.
KiwiSaver is not guaranteed by the Government. This means you make your investment choices in a KiwiSaver scheme at your own risk.
However, all KiwiSaver schemes are regulated by the Government Actuary in a similar way to other registered superannuation schemes. There are additional measures in place to make sure KiwiSaver schemes are competitive and members' best interests are looked after. For example:
- all KiwiSaver schemes are required to have fees that are not unreasonable
- default providers have a special contract with Government that requires them to meet additional reporting requirements, and
- default providers' activities and their default investment funds are closely monitored.
You can, at any time, choose to join the KiwiSaver scheme of your choice.
If you're automatically enrolled you'll be provisionally allocated to your employer's chosen scheme or to a default scheme. You can choose to stay in that scheme or you can change to a different one.
If you choose your own KiwiSaver scheme within the first 3 months of starting your new job, your contributions will go directly to your chosen scheme (not the one you were provisionally allocated to).
You can change schemes at any time as all KiwiSaver providers and portfolios are not the same - However past performance is not a guarantee of future performance.
A copy of my disclosure statement is available to you at no cost
