Helping New Zealanders save
KiwiSaver is a work-based savings scheme
designed to help you save for your future
In New Zealand, many of us like to live for the present, but planning for your retirement is important too. Therefore, the KiwiSaver incentives may well be the motivation you need to plan ahead and save for your retirement.
KiwiSaver is available for New Zealand residents younger than 65. Different options are available for people in employment, the self employed, beneficiaries and people on low income.
Also children are eligible to join the KiwiSaver scheme from the day that they are born. They will receive the same benefits without being obliged to make any additional (parent) contribution until they start employment.
Investing in a KiwiSaver scheme could offer you a lot of 'up-side'
Benefits include:
- A one-off Government kick-start of $1,000 when you join your first KiwiSaver scheme.
- A tax credit to match your savings, up to $20 per week (approximately $1,040 a year).
- If you are employed, contributions from your employer at a compulsory minimum rate of 2% of your gross salary or wages.
- After three years’ KiwiSaver membership, you can apply to withdraw your contributions to buy a first home (excluding the kick-start of $1,000 and any tax credits received). After three years’ saving, you may be eligible for a first-home deposit subsidy from Housing New Zealand of up to $1,000 for every year of saving, up to $5,000 towards your first home.
The nuts and bolts of KiwiSaver
Here’s how it works:
- As an employee, you will make KiwiSaver contributions of an amount equal to either 2%, 4% or 8% of your gross salary or wages. You may contribute more if you choose by way of lump sum or regular direct debit contributions.
- Contributions are generally ‘locked in’ until you reach the age of entitlement for New Zealand Superannuation (currently 65) or until you have been a member of a KiwiSaver scheme for at least five years, whichever is the later.
- Early withdrawals are allowed in special circumstances, for example: purchasing a first home, significant financial hardship, serious illness and permanent emigration‡.
- Once you have been investing in a KiwiSaver scheme for 12 months, you can take a ‘contributions holiday’, that is, stop making payments to your KiwiSaver scheme for a period of time.
Contact us today to discuss KiwiSaver solutions that suit your circumstances.
Joe den Enting Financial Services is KiwiSaver accredited for ING NZ and Fidelity life.Our up to date disclosure statement is available upon request.
Retirement planning
We are happy to advise you on other retirement planning queries you may have. For any type of investment besides KiwiSaver we will however refer you to one of our trustworthy partners.Joe den Enting Financial Services. Whangarei. Phone: 09 434 0661. Fax: 09 434 0663. Email:
