Kiwisaver

We all need to save for our retirement, and it’s getting harder and harder to own your own home without tapping into a range of ways to raise that deposit. Kiwisaver can help you achieve both – and it comes with bonus contributions from employers and the government! What’s not to like?

General benefits

KiwiSaver offers benefits no other investment can. A percentage of your pay goes into an independent fund held by a licensed trustee and managed by a Kiwisaver provider. When you join KiwiSaver you will receive these benefits:

A three per cent contribution from your employer from your Before Tax Pay (less employer’s superannuation contribution tax) is also paid into your fund along with your own weekly contribution.
You could receive a Member Tax Credit of up to $521.43 every year (for every $1 you put into your KiwiSaver scheme account, the Government will put in 50 cents up to a maximum of $521.43 per year, if you’re 18 or over).

First home deposit

You can also use Kiwisaver (once only) to get into your first home:

If you’ve never owned a home, and you’ve been a KiwiSaver member for at least three years, you can take out all of the money both you and your employer have put in, as well as all of the investment returns, to help buy your first home.
On top of the first home withdrawal, if you’re eligible, you may also receive up to $10,000 as a HomeStart grant from the Government towards your first home (Conditions apply – see the Housing NZ website for details).

Who holds the money

Your Kiwisaver money is held in an independent trust. Whether you are with a big Aussie bank or a New Zealand-owned KiwiSaver specialist, the KiwiSaver Act requires your investments to be held by a licensed trustee and not the scheme provider.

This means you can focus on selecting the fund that’s right for you knowing your investments are being held and supervised by an independent trustee. I can sit down with you and go through the range of options to ensure you choose the right provider and your funds are held by a licensed trustee of your choice. I can also discuss how much you may want to save in your Kiwisaver fund each week and how that translates into your total savings including employer’s contributions and annual government Member Tax Credits.

Find out more

If you’d like me to provide you with general advice about Kiwisaver, get in touch for a casual chat over coffee at a time and place that suits you – no pressure, no obligation. You might also want to check out the range of various types of insurance I can provide you with too, so we can discuss how to ensure you’re financially protected in other situations – it’s what we do.

You can also find out more about Kiwisaver online at kiwisaver.co.nz.