KiwiSaver is a great way to start your retirement planning and when you see how quickly it can build up, due to contributions from the Government and employer, clients have said they wished they had joined earlier.

“We have had clients take $25-$30,000 each from there KiwiSaver to use as a deposit for their first homes… which they could not have done, if they were not in KiwiSaver.”

Why Join KiwiSaver?

KiwiSaver has a range of membership benefits including contributions from your employer and the Government, as well as help buying your first home.

  • To help you save, the Government will make an annual contribution towards your KiwiSaver account as long as you are a contributing member aged 18 or over -Member tax credit – For every $1 you contribute, the Government will contribute 50 cents (to a maximum of $521).
  • Compulsory employer contributions – If you’re eligible, your employer will also contribute an amount equal to 3% of your pay to your KiwiSaver savings.
  • You may be able to withdraw some of your KiwiSaver savings to put towards buying your first home.
  • After 3 years of contributing to KiwiSaver, you may be entitled to a first home deposit subsidy. The subsidy is administered by Housing New Zealand and will be paid to your solicitor on the day the purchase of the property is settled.

Who can Join?

For many people, KiwiSaver will be work-based which means that your KiwiSaver contributions will come straight out of your pay.

  • If you are employed and choose to join, contributions are deducted from your pay at the rate of 3%, 4% or 8% (you choose the rate) and invested for you in a KiwiSaver scheme.
  • If you’re self-employed or not working, you agree with your KiwiSaver provider how much you want to contribute, and make payments directly to them. You DO NOT have to contribute if you do not wish. If you do contribute, the government will put in 50 cents for every dollar you contribute up to a maximum of $521. (So if you put in $1,043, the government will give you $521)
  • Children can also join. They will start to contribute when they start to work, but are NOT entitled to the Government tax credit ($521) till age 18.

When Can I Get My Money Out?

When you can get your money

Your KiwiSaver savings will generally by locked in until:

  • You’re eligible for NZ Super (currently 65), or
  • You’ve been a member for at least 5 years (if you joined over the age of 60).
  • You may be able to make an early withdrawal of part (or all) of your savings if you’re: (Subject to conditions)
    • Buying your first home
    • Moving overseas permanently
    • Suffering significant financial hardship
    • Seriously ill.

Want to know more? Call us today on 0800 TRAUMA (872 862) or text ‘kiwi saver’ to 0272 872 862 for a call back to your mobile.