KiwiSaver

Introduction
Everyone from age 0 to age 65 should join KiwiSaver. It doesn’t matter if you are employed, self employed, an unpaid homemaker, a beneficiary, student or a preschool child, there are benefits and incentives for all to join whether you are working or not. The $1,000 government kick-start may not be available forever, so sign up now and make sure you claim your entitlement, and the compound growth on that money from now until your retirement. For those over 18, every month that you delay joining, you are also throwing away an $86 a month government contribution ($1,040 a year) to your plan and the compound growth on that money from now until retirement age!

Click here to complete a confidential inquiry form or call us now on 0800 85 86 69

Why join KiwiSaver? The benefits-

$1,000 Kick-start payment
The government will kick-start your account with a tax free contribution of $1,000. This is credited to your account after three months on the condition that you keep contributing for at least a year.

Government gifts known as tax credits are paid into your KiwiSaver account
For everyone over the age of 18 the government will match your contributions dollar for dollar up to a maximum of $1,040 per year. This is calculated pro rata from the date that you start to contribute to KiwiSaver so every month you delay joining you loose $86 and the compound growth on that money until your retirement age.

Employer contributions for salary & wage earners
For salary & wage earners your employer is required to contribute 2% of your pay to your Kiwisaver scheme.

Buying your first home
After being a member of KiwiSaver for three years you may be able to withdraw all or part of your savings (except for the $1,000 kick-start and the government tax credit) to put towards buying your first home.

If you’ve been contributing to KiwiSaver, you may also be entitled to a first home deposit subsidy from the government through Housing New Zealand.

The subsidy is up to $1,000 per year of membership in the scheme, up to a maximum of $5,000 for 5 years for each member. This means a couple would qualify for twice this amount. The eligibility criteria are set by Housing New Zealand and include household income and regional price caps.

Click here to complete a confidential inquiry form or call us now on 0800 85 86 69

Who can join?
To be eligible to join KiwiSaver you must be:

State Service employees serving outside New Zealand can also join, provided they are serving in a jurisdiction where offers of KiwiSaver membership are lawful

If you hold a temporary, visitor or student permit you can’t join KiwiSaver.

How it works
If you are employed, when you join KiwiSaver, your employer will deduct your chosen rate of 4% or 8% of your pay at each pay day, and send this to the IRD through the PAYE payroll system. The government then passes this onto your KiwiSaver provider who invests the money in your individual KiwiSaver plan.

Unless you elect to choose your own scheme you will either be allocated to a default scheme by the IRD or if your employer has nominated a preferred provider, then you will be enroled in that scheme. However you are free to choose your own scheme and this is where we can help you add considerable value to your retirement savings. Click here to send us a confidential inquiry form.

If you are self employed or not working, then you contribute directly to the your KiwiSaver scheme by direct debit

In both cases the government tax credit of up to $1040 a year and the $1,000 kick-start are passed to the scheme once you have qualified for these payments.

You are free to choose not only your KiwiSaver scheme provider, but also which funds your scheme provider invests your money into. These are very important decisions and if you use us to sign up to KiwiSaver we will also undertake to provide you with free advice on fund selection, and will be available to help you with free ongoing advice and forecasts of your retirement nest egg. We can help you add considerable value to your retirement savings.

Click here to complete a confidential inquiry form or call us now on 0800 85 86 69

Getting your money out –
You can withdraw your savings, including the government kick-start and the member tax credit, as a lump sum when you qualify for NZ Super (currently 65) or after 5 years’ membership, whichever is later.

Your money is locked in until NZ State Super age, but you may be able to withdraw your savings earlier under the following circumstances:

After three years to buy your first home (excluding the government kick-start and member tax credit)

If you experience significant financial hardship (excluding the government kick-start and excluding member tax credit)

If you suffer from serious illness (excluding the government kick-start but including the member tax credit)

If you emigrate permanently (including the government kick-start but excluding the member tax credit which is paid back to the government)

If you die your savings will be paid to your estate

Why use us to join KiwiSaver?
We are independent brokers and as such are not tied to any one KiwiSaver scheme or company. Our aim is to provide you with independent, and personalised advice based on your own circumstances, to establish and help you meet a personal retirement savings goal, through planning, advice and careful fund selection. We provide ongoing assistance, will answer any questions you may have, and demystify any jargon for you.

Click here to complete a confidential inquiry form or call us now on 0800 85 86 69

A note to ex UK residents
For tax reasons, it is important to keep your UK pension transfer separate from your KiwiSaver savings.

Sign up now! It’s easy……. Click here to complete a confidential inquiry form or telephone us on our inquiry hotline 0800 85 86 69

 

All content © copyright to Nick Powell - UKtoNZ Pension Transfers 2004 - 2011. Last updated October 2010