Whether you’re looking to get the most out of KiwiSaver, have some funds and would like to consider your investment options, or wanting a personalised investment plan, I can provide personalised advice to help you achieve your financial goals.
I am qualified to provide advice on KiwiSaver, financial investments, property investment, investment planning, and retirement planning.
For our KiwiSaver clients, I see my role as ensuring that our clients are in an appropriate fund, helping them to understand what they are invested in, and providing oversight of their KiwiSaver provider and their capabilities. I have several KiwiSaver clients who I am helping manage their savings during retirement.
I am also there to be our clients’ point of contact with their KiwiSaver provider.
Importantly, I am here to answer any questions our clients may have.
About KiwiSaver
KiwiSaver is a type of managed fund with a set of rules designed to ensure the funds are held through to retirement, with some exceptions around first home purchase and financial hardship.
The scheme came into effect in 2007, following the passing of the KiwiSaver Act 2006. It provides Kiwis with a voluntary savings scheme to help them save for their retirement, allowing them to choose one of a number of registered private providers for their KiwiSaver investments. The scheme has a number of significant benefits, including:
- A government annual contribution of up to $521 (for contributing members aged 18 or over)
- Employer contributions of at least 3% of employees’ gross salary or wages (in addition to the employees’ own contributions)
- Access to KiwiSaver savings for the purchase of a first home, contingent on at least three years membership. In some circumstance members may be able to use savings even if they have owned property previously
- It is possible to access the funds early in the case of significant financial hardship, if you’re moving permanently to a different country, if you have a serious illness, or if you have a life-shortening congenital condition.
Other benefits include:
- Ease and simplicity – including automatic enrolment for new employees and deduction of contributions, which has helped contribute to the development of savings habit for some KiwiSaver investors
- Portability – if members’ change jobs or leave the workforce their KiwiSaver account moves with them
- Access to the benefits of managed funds in a specifically legislated and well publicised environment, with which Kiwis are becoming familiar.
There are three ways to join KiwiSaver:
- Kiwis not already enrolled in KiwiSaver will automatically be enrolled when starting a new job. If automatically enrolled, new employees can choose to opt-out, but must do this within 8 weeks of commencing
- Investors can apply to open a KiwiSaver account through their employer
- Investors can apply by to open a KiwiSaver account by contacting a KiwiSaver provider directly, this includes those who are self-employed and those not in paid employment
Once enrolled in KiwiSaver, members have to contribute for at least 12 months. After 12 months, members have the option to take a break from saving (called a ‘savings suspension’). Investors are only able to be enrolled with one KiwiSaver provider, although they may be able to invest in more than one KiwiSaver scheme with that provider.
There is no minimum initial investment to open a KiwiSaver account and there is no minimum ongoing annual contribution, unless the KiwiSaver member is in paid employment. In this case, the employer will administer a minimum employee contribution of 3% of gross salary or wages, unless the employee has opted out. Employees can elect to contribute at the minimum rate of 3%, or choose a higher rate of either of 4%, 6%, 8% or 10% of gross salary or wages.
KiwiSaver members also have the ability to make voluntary contributions at any time, either directly through their KiwiSaver provider or through Inland Revenue
KiwiSaver funds are usually Portfolio Investment Entities (PIEs) and so distributions are taxed at the individual’s Prescribed Investor Rate (PIR). The fund itself will pay the tax on behalf of the investor.