KiwiSaver is a voluntary investment scheme implemented by the Government to assist New Zealanders into saving for their first home deposit, or retirement. KiwiSaver was implemented in 2007, and has been growing rapidly ever since. Important points to note in regard to KiwiSaver is that…
- You are eligible to open a KiwiSaver account if you are a New Zealand citizen or permanent resident who either lives, or normally lives, in the country
- You can only withdraw your KiwiSaver balance for…
- Your First Home Withdrawal
- Reaching 65 years old
- Moving overseas permanently, financial hardship, terminal illness or death
- You can choose to directly make voluntary top ups to your KiwiSaver account
- You can choose to contribute either 3.5%, 4%, 6%, 8% or 10% of your ‘before tax’ pay directly
- If you contribute 3.5% or more of your direct pay, your employer is legally required to contribute a minimum of 3.5%, which is subject to employer superannuation contribution tax (ESCT)
- You may be eligible to annual Government contributions up to $260.72 as long as you meet the criteria
- You decide which KiwiSaver provider will manage your investment
- You choose the type of fund (i.e. conservative, moderate, balanced, growth, aggressive etc.) that your KiwiSaver provider offers.