Saving with KiwiSaver
KiwiSaver is a voluntary, long-term savings initiative to help set up New Zealanders for their retirement. Most KiwiSaver members will build their savings through regular contributions from their pay.
While maybe not the total answer to your retirment needs, we believe that KiwiSaver provides an excellent vehicle and benefits to savings for one’s retirement.
Some of these benefits include:
- A $1,000 kick start for savers provided by the government.
- Matching contributions by the government up to a maximum of $1040 per annum.
- Employer contributions of 2% of your salary.
- Portability as KiwiSaver is available through all employers.
- You can take a contributions holiday after 12 months of saving.
- After 12 months, 50% of your personal contributions can be diverted to pay your mortgage.
- After 3 years of contributions, all or part of the savings (except for the $1,000 government contribution and matching $1,040 tax credit) can be put towards your first home.
Funds will be locked into your chosen scheme with the following exceptions:
- Financial hardship and serious illness.
- Permanent emigration.
- For a deposit on a first home (after at least three years of saving).
- Court ordered property relationship settlements.
Employees must contribute 2%, 4% or 8% of their salary. You may decide to contribute 2% to best maximise the Government and employee contributions. It is important to note that the funds you invest in KiwiSaver are locked in for 5 years or until you reach the age of entitlement to New Zealand Superannuation, which is currently 65 (whichever happens last).
