Most people in New Zealand are enrolled in KiwiSaver. With your employer and the Government catapulting your fund by adding their contributions, it just makes sense.
However, very few people ever got professional guidance about their KiwiSaver investments before they enrolled. Mostly because they simply don't realize how much they need it.
We aim to fix this situation by providing free, no obligation professional guidance about your KiwiSaver investments to make sure you get the most out of it by the time you retire.
However, very few people ever got professional guidance about their KiwiSaver investments before they enrolled. Mostly because they simply don't realize how much they need it.
We aim to fix this situation by providing free, no obligation professional guidance about your KiwiSaver investments to make sure you get the most out of it by the time you retire.
The investment and economic world can be complex and difficult to make sense off.
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Paul de Klerk
Registered Financial Adviser (FSP110367)
Registered Financial Adviser (FSP110367)
FREQUENTLY ASKED QUESTIONS:
Question 1: What is KiwiSaver?
Question 1: What is KiwiSaver?
- KiwiSaver is a voluntary retirement savings scheme in New Zealand. It's designed to help New Zealanders save for their retirement and achieve long-term financial goals.
- KiwiSaver works by allowing individuals to contribute a percentage of their income to a KiwiSaver account. Employers may also make contributions, and the government provides member tax credits to boost savings.
- Yes, you can withdraw your KiwiSaver funds in specific circumstances, such as buying your first home or experiencing significant financial hardship. However, the primary purpose of KiwiSaver is to save for retirement.
- KiwiSaver offers several benefits, including long-term savings for retirement, employer contributions, government member tax credits, and the ability to use your savings to buy a first home.
- KiwiSaver is not mandatory, but most New Zealanders choose to join voluntarily to benefit from the incentives and long-term savings it offers.
- To join KiwiSaver, you can contact a KiwiSaver provider or your employer's HR department. You'll need to choose a fund and set your contribution rate. Or! Contact us to get it done for you!
- If you leave New Zealand permanently, you can either keep your KiwiSaver account open and manage it from overseas or transfer your savings to another qualifying retirement savings scheme in your new country of residence.
- The minimum contribution rate for KiwiSaver is 3% of your before-tax salary or wages. However, you can choose to contribute more (4%, 6%, 8%, or 10%) if you wish to save at a higher rate. You are also able to contribute voluntarily any amount you wish.
- No, there are no age restrictions for joining KiwiSaver. Anyone of any age can become a KiwiSaver member however if you are under 18 years of age a parent or legal guardian needs to be involved in the sign-up process.
- When you reach the age of eligibility for New Zealand Superannuation (currently 65), you can access your KiwiSaver savings as a source of retirement income.
- You must be a member for 5 years to withdraw your money.
- Yes, you can change your KiwiSaver fund at any time. It's important to review your fund's performance and fees regularly to ensure it aligns with your financial goals.
- You can check your KiwiSaver balance by contacting your KiwiSaver provider (many have their own apps you can download) or by logging into your MyKiwiSaver account on the Inland Revenue website.
- The government provides a member tax credit (MTC) to KiwiSaver members. This means they will contribute 50 cents for every dollar you save, up to a maximum of $521.43 per year.
- Yes, self-employed individuals can join KiwiSaver and make contributions to their own accounts. They are not required to have an employer make contributions on their behalf.
- To receive your full government contribution of $521.43, you need to contribute at least $1,042.86 to your KiwiSaver account each year. The contribution year runs from 1 July to 30 June.
- If you choose to opt out of KiwiSaver within the specified time frame after enrolling, any contributions made to your account will be refunded to you. You won't receive any employer contributions or government member tax credits if you opt out.
- You are a New Zealand citizen or a NZ Permanent Resident
- There are 4 common fund types: Conservative, Balanced, Growth and Aggressive.
- Choosing the correct fund for your individual situation is critical as it can mean the difference of tens of thousands of dollars over time.
- KiwiSaver savings are subject to taxation. They are treated as a Portfolio Investment Entity (PIE) and taxed based on your share in the PIE's fund(s). The tax is paid to the Inland Revenue at your Prescribed Investor Rate (PIR), which can be 28%, 17.5%, or 10.5% depending on your taxable income. It's crucial to provide the correct PIR and Inland Revenue Department (IRD) number to avoid overpayment of tax or potential liability for additional tax if your PIR is incorrect.
- You pay tax only on your returns from KiwiSaver, not on the entire balance. Your KiwiSaver scheme will collect your share of the payable tax and pay the IRD on your behalf, in most cases.
- You must be a contributing member for 3 years.
- The property must be your principle place of residence with intent to live in the home or on the property for a minimum of 6 months.
- Must be your FIRST home purchase.
- After withdrawal $1,000 must be remain in your KiwiSaver account.
- You are not able to use Australian Super Transfers for first home purchases.
- You must be a contributing member for 3 years.
- They will pay $1,000 per year of membership however this is capped at $5,000.
- If it's a new home build the grant increases to $2,000 per year of membership, capped at $10,000.
- There are house value restrictions according to different regions.
- You must earn less than $95,000 pa or less than $150,000 if you're a couple
- The grant is provided through Kainga Ora.
- In the event of death the funds are transferred to the estate or in accordance to your Will.
- In the event of a divorce the funds are treated as matrimonial property.
- All providers are required to keep the investments with an independent licensed trustee.