What is KiwiSaver ?

KiwiSaver

Here is a beginners guide to 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 2% (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.

As an Employee:

KiwiSaver gives you the opportunity to enhance your retirement income.
Low fees.
Significant government incentives. $1,000 kick start.
Significant tax savings possible. Up to $1,040 per year credited to your KiwiSaver account.
1st home buyer subsidy. Up to $5,000 towards your deposit. (conditions apply)
Employer contributions. Your employer will contribute an additional 2% 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. $1,000 kick start. Up to $1,040 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 Subsidy. Up to $5,000 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.
You will receive the $1,000 KiwiSaver kickstart Your contributions will be matched by a tax credit of up to $20 per week ($1,040 per year)
3 years after you begin contributing you may qualify for the 1st Homebuyer Subsidy.. Up to $5,000 towards your deposit

For advice and assistance: Contact Us

If you are aged between 1 month and 18:

You can join Kiwisaver.
You will receive the Kick Start of $1,000.
Your funds will be locked in until you reach the age of retirement (Currently 65).
You will not be required to contibute anything until you start work. However it may be advisable to make one initial contribution because
One year after making your first contribution you can apply to take a Contributions Holiday.
If you start working (including Part Time) and are paying PAYE tax you will automaticcaly contribute 2% of your gross earnings.
After contibuting for 3 years you may qualify for the 1st Homebuyer Subsidy (Up to $5,000 towards your deposit) and Mortgage Diversion
You will not receive the annual Tax Credit until you reach the age of 18.
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

If you are aged between 60 and 65:

You can join Kiwisaver.
You will receive the Tax Credit of up to $1,040 per year.
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 2% 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 advice and assistance:Contact Us

For further information and advice .